CANTV’s revenues up 19.5%, profit down 26.6%

8 Nov 2007

Venezuelan state-owned fixed line and mobile operator CANTV’s net profits fell 26.6% year-on-year to VEB341 billion (USD159 million) in the third quarter of 2007, on revenues which increased by 19.5% year-on-year to VEB2.08 trillion. Total fixed line turnover in the three months ended September 2007 was VEB739 billion, or 35.5% of total sales, including VEB241 billion from local telephony (up 6.8% year-on-year), whilst revenues from mobile telephony unit Movilnet totalled VEB1.04 trillion (exactly 50% of group sales), a 28.3% increase on 3Q06. Broadband revenues were up 37% year-on-year at VEB303 billion, representing 14.5% of total turnover. CANTV ended 3Q07 with 691,600 broadband internet subscribers, up 63.7% compared to 3Q06, and 3.9 million fixed lines in service, up 21.1% year-on-year. Movilnet had 8.9 million mobile subscribers at the end of the quarter, an increase of 32.5% on the same date last year. The group spent nine-month CAPEX of VEB998 billion largely on expanding GSM and broadband infrastructure nationwide, and also invested significantly in next generation network (NGN) technology and in expansion of its PSTN network.

Venezuela, CANTV, Movilnet