Embratel: Q4 net profits dip 46% to USD53m

5 Feb 2008

The Brazilian fixed line telephony provider Embratel Participacoes (Embratel) reported a 46% year-on-year fall in net profits for the three months ended 31 December, down to BRL91.9 million (USD52.6 million), it said in a statement. For the full year, net income reached BRL841 million, however, a more than six-fold increase on the BRL106 million recorded in 2006. Fourth-quarter revenues were up 7.1% y-o-y at BRL2.23 billion, helping boost full year sales to over BRL8.62 billion – up 4.9% on the figure reported in 2006. Embratel said its net income in 2007 was impacted by the merger of cable operator Net Servicos – which is controlled by Embratel – and another local pay-TV provider Vivax. The fixed line provider said EBITDA climbed 236% to BRL515 million in the fourth quarter, compared with BRL153 million in the corresponding period of 2006, while the EBITDA margin was 23.1% (up from 7.4%).