GVT’s second quarter profit up 22.7% at USD37m

22 Jul 2009

Brazilian local telephony and internet access provider Global Village Telecom (GVT) reported second-quarter net profit of BRL70.3 million (USD37 million), up 22.7% compared to the BRL57.3 million reported in the three months to 30 June 2008. In an earnings statement the company said net revenues for the period under review reached BRL406 million, up 28% year-on-year, while adjusted EBITDA climbed 38.5% to BRL156 million. Second-quarter CAPEX totalled BRL141 million, down 14.2% y-o-y.

GVT added a net 223,905 new lines in the three months to 30 June 2009, giving it a total of 2.32 million lines in service. Of the total lines connected in the period, 96,597 were voice telephony lines, 55,497 were high speed broadband and 71,811 were VoIP and corporate lines. As at 30 June, GVT had a total of 540,864 high speed internet users, of whom approximately 21% were able to access the web at speeds of more than 10Mbps, GVT said. The company’s chief financial officer Rodrigo Ciparrone says that from next month the company plans to launch new access speeds ranging from 3Mbps to 100Mbps based on FTTH technology. Moreover, GVT has also announced plans to launch telecoms services in three new cities during the fourth quarter of 2009. The CFO added that the telco aims to expand high speed broadband coverage to around 70% of cities where it is active in the coming quarters.

Brazil, Global Village Telecom (GVT)