Pay-TV, Speedy internet drive Telesp's Q3 profit growth

29 Oct 2008

Brazilian fixed line operator Telesp, a unit of Telefonica of Spain, has reported a 13.1% year-on-year rise in third-quarter net profits from BRL528 million (USD239.4 million) to BRL598 million, on net operating revenue which increased 13.2% to BRL4.09 billion, from BRL3.62 billion previously, BNamericas reports. Telesp attributed the growth to the popularity of its pay-TV and Speedy (internet) services, infrastructure rental and interconnection revenues, increased domestic long-distance revenues and the tariff readjustment of last July. Telesp posted EBITDA of BRL1.68 billion, up 9.3% y-o-y, although the EBITDA margin dipped 1.5 percentage points to 41% in Q3 2008. Operating costs and expenses increased 16.1% to BRL2.42 billion in the period under review, the company said. As at 30 September, Telesp had 424,974 pay-TV subscribers, up 22.5% y-o-y, while broadband users reached 2.4 million, a 26.9% increase on the corresponding year-ago period, and 11.8 million fixed telephony lines – down 1.4%.

Brazil, Telefonica Brasil (Vivo)