GVT’s 2Q revenues, profit up

16 Jul 2008

Brazilian fixed telephony and internet access provider Global Village Telecom (GVT) posted net profit of BRL58.2 million (USD36.6 million) in the second quarter of 2008, up 35% year-on-year, as revenues climbed by 35.5% to BRL317 million, BNamericas reports. The telco’s 2Q08 EBITDA rose 44% in the same period to BRL119 million, while GVT’s EBITDA margin improved by more than two percentage points to 37.5%.

GVT added a net 165,847 new lines in the year to 30 June 2008, boosting its total to around 1.538 million lines in service. Of that amount, 74,553 were new voice telephony subscribers, 59,156 were broadband accounts and 32,138 were other business users. By the start of July the telco had 878,743 voice telephony subscribers, of which 125,250 were corporate accounts, 351,550 broadband internet users and 89,519 VoIP subscribers. The company invested BRL164.7 million in 2Q08, an increase of 69.6% compared to 2Q07, deploying 129,670 new accesses in the process, compared to 62,990 in 2Q07.

In May 2008 GVT expanded its operations to Contagem (State of Minas Gerais), a city located in the metropolitan region of Belo Horizonte, with a population of approximately 700,000. The company expects to launch its services in another region of the country by the year-end.

Brazil, Global Village Telecom (GVT)