BrT net income up 135% in Q3

25 Oct 2007

Brazilian fixed line and mobile operator Brasil Telecom (BrT) reported net profits of BRL150 million (USD83.2 million) in the three months to 30 September 2007, up 135% year-on-year, on revenues of BRL4 billion, up from BRL2.84 billion previously. Fixed line turnover stood at BRL2.75 billion, a 3.2% decline on the corresponding figure in Q3 2006, but still accounted for 69% of the group’s overall revenues. ‘In the fixed line segment we continue focusing on the expansion of our ADSL service. Another important fact was the launch of IPTV services in Brasília in September,’ BrT’s Paulo Narcelio is quoted as saying. BrT plans to expand the availability of its Videon IPTV service to other capitals in the coming months, Narcelio said. BrT’s EBITDA in the period under review was BRL970 million, compared with BRL907 million a year ago, while the EBITDA margin rose to 35.3% from 34.5%. 3Q07 CAPEX was BRL335 million, down from BRL425 million a year ago, while operating costs and expenses amounted to BRL1.78 billion, or 64.7% of net revenue, down from BRL1.72 billion. At the end of September BrT had 5.4 million residential main lines in service, a 3.7% y-o-y decline, although ADSL subscribers continued their upward path with the telco reporting a 21.6% rise in the year, to end September with 1.52 million broadband subscribers.

BrT’s mobile arm generated revenues of BRL540 million in the third quarter, up 33% from BRL406 million in 3Q06. By the start of October the unit had around four million mobile subscribers, up 31.9% y-o-y, of which approximately 3.16 million were pre-paid.

Brazil, Brasil Telecom (BrT)