GVT reports strong first quarter

16 Apr 2008

Local telephony operator and internet provider GVT has posted a 34.7% hike to BRL290 million (USD172 million) in net revenues for the first quarter of 2008, versus the corresponding period last year. EBITDA meanwhile grew 44% to BRL107 million and a net loss of BRL60.2 million in the first quarter of 2007 was reversed to a net profit of BRL31.1 million. The results were boosted by a record addition of 128,778 lines in service during the quarter, up 69% year-on-year, making the total number of lines in service almost 1.4 million. ‘This increase was due to two elements. First was an expansion in the offer of new services, with a large investment in the network to reach new cities and to strengthen our coverage in the cities we already service. Second was the continually increasing demand,’ GVT’s VP of the business, retail and internet unit Alcides Troller Pinto said in a conference call. ‘The demand for our products is still above our current capacity,’ said GVT’s investor relations manager Rosangela Sutil de Oliveira. BNamericas reports that the company’s CAPEX stood at BRL147 million in Q1 2008, jumping 141% year-on-year.