Telesp's Q4 profit dips 11% on lower connections

21 Feb 2008

Brazilian telecoms operator Telesp said its net profit for the three months ended 31 December 2007 fell 11.3% year-on-year to BRL641.4 million (USD370 million), from BRL723.2 million in the same period a year ago, as a reduction in connections impacted on its revenues. Operating revenue at the Telefonica-owned unit was BRL3.74 billion, down from BRL3.77 billion in the fourth quarter of 2006, attributed to lower fixed line revenues and interconnection charges. The fall was partly offset by higher sales of data services it said, although Q4 2007 EBITDA was also down 7.3% y-o-y at BRL1.5 billion. Full-year net income stood at BRL2.36 billion, down from BRL2.82 billion in 2006, and EBITDA for the year fell 10% to BRL6.2 billion. Full-year turnover was up however, at BRL14.7 billion from BRL14.64 billion previously. The company’s capital expenditure in 2007 totalled BRL1.99 billion, broadly in line with company expectations. Net debt was BRL2.73 billion by the end of the year, up from BRL1.24 billion as at 30 September 2007, reports BNamericas.

Brazil, Telefonica Brasil (Vivo)