Telemar Norte Leste (Oi) yesterday reported net losses of BRL146 million (USD79.7 million) for the three months ended 30 June 2009, compared with net income of BRL288 million in the same period of 2008, as amortisation costs related to its acquisition of fellow operator Brasil Telecom (BrT) impacted on its bottom line. The Sao Paulo-headquartered firm published its results on a pro-forma basis, posting revenues of BRL11.2 billion, up 2.9% year-on-year, while debt levels doubled to BRL29.6 billion, from BRL13.2 billion in 2Q08. Oi said group EBITDA dipped 6.6% y-o-y to BRL2.4 billion, largely attributable to ‘operations in Sao Paulo, which are still in the launching phase,’ it said in its company filing.
Oi said mobile average revenue per user (ARPU) dropped by 15% between 2Q08 and 2Q09, to BRL21 per month, as customers spent less in a worsening economic climate. Higher value post-paid subscribers on contracts accounted for 15.3% of the operator’s total by 30 June 2009, down from 16% a year earlier.
Oi ended June with almost 34 million mobile customers, a 21.2% share of the Brazilian mobile market, having boosted its market share every month this year. In the second quarter, Oi said it added 224,000 new fixed broadband and 3G mini modem customers, of which 128,000 were net additions for ADSL/cable broadband services. Oi Mobile’s 3G mobile internet base reached 327,000 by 30 June 2009, up by 140,000 in a quarter. At the same date, fixed broadband accesses totalled 4.066 million, up 15.7% year-on-year. In May Oi confirmed its plan to invest up to BRL1 billion to expand and upgrade its network in nine states and the Federal District and add 770 mobile-phone towers.