Oi's Q1 net profit up 42% y-o-y

6 May 2008

Brazilian telecoms operator Oi (formerly Telemar) has reported net profit of BRL486 million (USD293 million) for the first quarter of the year, up 41.7% on the same period in 2007, writes BNamericas citing a company statement. Oi said net revenues edged up 4.27% year-on-year to BRL4.49 billion while EBITDA rose 13.7% to BRL1.65 billion and the EBITDA margin increased by 3% to 36.7%. The company’s capital expenditure totalled BRL645 million in 1Q08, up 14.4% on 1Q07, of which 78% was allocated to fixed telephony and the remainder to mobile. Oi expects to spend upwards of BRL4 billion in 2008 compared with CAPEX of BRL2.3 billion last year. By the start of April Oi had 14 million fixed lines in service, down 2.1% y-o-y, 1.6 million broadband subscribers (38.6%), and 17.3 million mobile users (29.7%), of which 84% were pre-paid. The figures exclude the operational and financial statistics of regional cellco Amazonia Celular, which Oi purchased in December last year for BRL120 million.

Brazil, Oi