Net Servicos reverses net loss in third quarter

22 Oct 2009

Brazilian CATV and internet access provider Net Servicos has reported net profit of BRL246 million (USD141 million) for its fiscal third quarter ended 30 September 2009, reversing a net loss of BRL63 million for the same period a year ago. In a statement the company said net revenues climbed 26% year-on-year to BRL1.2 billion from BRL948 million in 3Q08, while EBITDA rose 30% y-o-y to BRL322 million; the EBITDA margin was up one percentage point at 27%. However, third quarter ARPU dipped 1% from BRL135.6 in 3Q08 to BRL134.3, mainly as a result of the incorporation of new acquisitions – specifically the cable TV and broadband providers ESC90 and BIGTV. Net Servicos said third quarter CAPEX amounted to BRL238 million, down 8% year-on-year, due to appreciation of the real against the dollar, which reduced the cost of equipment. Net’s chief financial officer Joao Adalberto Elek confirmed the cableco was on course to hit its full-year capital expenditure target of BRL1 billion.

Net Servicos reported 3.65 million pay-TV customers as at 30 September 2009, up 25% year-on-year, while the broadband subscriber base rose 36% to 2.79 million and Netfone voice telephony users increased 63% to 2.49 million.