Net reports rising Q1 profit

21 Apr 2008

Brazilian pay TV and broadband internet access provider Net Servicos reported net profit of BRL32.3 million (USD19.4 million) for the three months ended 31 March 2008, up 9% from BRL29.6 million in the same period of 2007. The operator said net revenues climbed 26.7% year-on-year from BRL655 million in 1Q07 to BRL830 million a year later, while first-quarter EBITDA rose 19.1% from BRL188 million to BRL225 million. The EBITDA margin fell, however, from 29% to 27.1%, it said in a statement. Operational expenses increased 32.6% y-o-y from BRL298 million to BRL395 million, largely the result of higher workforce expenses and measures taken to sustain quality targets for customer care and maintenance services.

By the end of March 2008 Net Servicos had 2.5 million basic pay-TV customers (up 15.% year-on-year), 1.5 million broadband customers (up 61.3%) and 718,000 fixed telephony customers (up 179%).