GVT reverses net loss in Q3

11 Oct 2007

Brazilian telephony and internet services provider Global Village Telecom (GVT) has reported a net profit of BRL41.2 million (USD23.3 million) for the three months to 30 September, reversing a loss of BRL26.3 million in the corresponding year earlier period, the company said in a statement. The company said its financial performance was driven by improved EBITDA and service revenues. Third quarter EBITDA climbed 41.2% year-on-year to BRL92.9 million while net revenues were up 28% at BRL259 million. The EBITDA margin improved from 32.5% to 35.8% in the same period.

GVT attributed the turnaround to improved EBITDA and revenues. Sales from next generation services such as ADSL, VoIP and corporate data increased 82% year-on-year, and accounted for 21% of total revenues in the period under review.

GVT’s CAPEX was BRL140 million in 3Q07, an increase of 162% year-on-year.

Commenting on the results, GVT’s Administration and Finance VP Karlis Kruklis said: ‘The company obtained strong and consistent results in all financial and operational indicators during the third quarter.’ The operator added 76,384 new connections in Q307, and had more than 1.2 million in service by end-September, up 29.7% y-o-y. The number of people taking its ADSL service also grew sharply. GVT reported 212,863 broadband internet users at the end of the third quarter, 82% higher than the year ago figure.

Brazil, Global Village Telecom (GVT)