Subscriber gains help Vivo swing into third quarter profit

6 Nov 2007

Brazil’s leading mobile operator by subscribers, Vivo Participacoes, reported net profit of BRL4.4 million (USD2.51 million) in the three months ended 30 September 2007, compared with a loss of BRL196.9 million in the same period of 2006, and a BRL112.8 million loss in Q207. The company’s latest financial results were helped by rising revenues on the back of steady subscriber gains, the company said. Vivo’s customer base rose 9% in the third quarter of 2007 to 31.32 million, aided by an aggressive marketing campaign and the recent acquisition of smaller rivals Telemig Celular and Amazonia Celular. Vivo, a joint venture between Portugal Telecom and Spain’s Telefonica, said service revenues increased 15.3% year-on-year to BRL2.84 billion, while sales of mobile phones and other related merchandise climbed 12.7% to BRL402.7 million. EBITDA rose to BRL833.3 million from BRL715.6 million a year ago.