Net Servicos reports surging Q4 profits

4 Feb 2008

Brazil’s leading pay-TV provider by subscribers and revenues, Net Servicos, has reported a massive 243% year-on-year rise in fourth-quarter revenues to BRL96 million (USD55 million), compared with BRL28 million in Q4 2006. The operator said its net revenues rose 28% year-on-year to BRL799 billion, while EBITDA climbed 23% to BRL216 million. Full year net income, which include the results of rival pay-TC firm Vivax which was acquired in May 2007, was BRL208 million (151% y-o-y), on revenues of BRL2.90 billion (28%) and EBITDA of BRL804 million (+26%), it said.

At the end of December 2007 Net Servicos had a total of 2.4 million subscribers, up 16% year-on-year, of which 1.4 million were broadband subscribers (65%) and 567,000 were fixed telephony customers (212%). The cableco reported operational expenses of BRL1.38 billion in 2007, up 30.7% compared with 2006, with programming costs climbing 20.1% and internet bandwidth costs spiraling 75.9%, it said. Full-year CAPEX in 2007 was BRL770 million, a figure which is expected to remain the same in 2008. Capital expenditure relating to signing up new customers is expected to be BRL550 million, reports BNamericas. Net is also considering a move to acquire another company – Big TV – subject to gaining regulatory approval, for around USD200 million.