Net Q2 earnings down 10% at USD17.4m

22 Jul 2008

Brazilian pay-TV operator Net Servicos posted net income of BRL27.6 million (USD17.4 million) in the three months to 30 June, down 10% year-on-year from BRL31.4 million in Q2 2007, BNamericas reports citing Net’s earnings statement. Net revenues climbed 27% y-o-y however, from BRL701 million to BRL891 million, and EBITDA rose 18% to BRL232 million from BRL196 million a year ago. The EBITDA margin dipped two percentage points to 26% over the same period.

Net Servicos said its operating costs were 26% higher in Q2 2008 at BRL419 million, largely the result of what it termed ‘greater consumption of connectivity services in support of the larger customer base’, as well as higher expenses related to customer service, maintenance and installation. CAPEX reached BRL195 million in the three months under review, up from BRL182 million a year ago. At the end of June the operator’s network passed 9.3 million households, up 5% y-o-y.

By 30 June the cable operator had 2.7 million basic TV customers, up 18% year-on-year, while the number of people taking its broadband service climbed 61% to 1.7 million. In addition, Net had 982,000 subscribers to its voice telephony services, nearly triple the 354,000 users registered in June 2007. ARPU was up 7% at BRL135, Net said, compared with BRL126 in Q2 2007. The company has also seen strong demand for its triple-play option – targeted at lower income customers – which reached 112,000 accounts at the end of June.