BrT net profit up 75% on internet, mobile growth

16 Jul 2008

Brazilian telecoms group Brasil Telecom Participacoes (BrT), currently the subject of a takeover by domestic rival Telemar Participacoes, has reported a 75% rise in second-quarter net income, driven by higher internet and mobile customers, Bloomberg reports. BrT posted net profits of BRL254.4 million (USD160 million) for the three months to 30 June, up from BRL145.5 million a year earlier, on revenues of BRL2.82 billion (up 2.9% y-o-y). The operator attributed the gains to strong demand for its high speed internet and mobile services, up 18% and 33% respectively, which helped offset a continuing drop in traditional fixed line telephony sales. Revenues from the unit dipped 0.8% it said, although main lines in service remained broadly unchanged.

BrT closed out June with 5.02 million mobile subscribers, up from 3.77 million a year earlier. Of the total, 45% were on pre-paid options, while post-paid accounts fell 6.5% over the year. The company is forecasting mobile growth of 30% this year. The telco also had 8.1 million fixed lines in service at the end of June and 1.71 million internet subscribers. It predicts its high speed user base will rise 22% in 2008 and has more than doubled its CAPEX to help achieve this. BrT spent BRL812 million in Q2 2008, raising the amount spent so far this year to BRL972.3 million. It plans to invest BRL2.2 billion this year, up 57% y-o-y, largely focused on expanding its wireless services.

Brazil, Brasil Telecom (BrT)