BrT 3Q profit up 9% on subscriber growth

16 Oct 2008

Brazil’s third largest fixed line telco by subscribers Brasil Telecom Participacoes (BrT) posted a 9.2% year-on-year rise in net profit for the three months ended 30 September 2008 on the back of strong customer growth – particularly for internet and wireless services. The company said net income rose to BRL164.1 million (USD73.6 million) in the period under review, from BRL150.3 million a year ago, while net revenues increased 3.4% to BRL2.84 billion. At 30 September the company had 1.761 million broadband internet subscribers, up 15.7% y-o-y, while the mobile base increased by 30.4% from 4.023 to 5.245 million. The fixed line base was up marginally by one point seven percentage points at 8.198 million. The company’s wireline unit reported a net addition of 93,800 lines in 3Q08, due mainly to the popularity of its pre-paid wireline plan Total Control, and an increase in the non-residential client base. Mobile blended average revenue per user (ARPU) declined 18% to BRL28.81 reais in the third quarter after the proportion of lower spending pre-paid customers climbed from 79% to 83%.

Brazil, Brasil Telecom (BrT)