Oi’s 3Q09 profit drops on acquisition costs

23 Oct 2009

Brazil’s largest telecoms company by revenues Telemar Norte Leste (Oi) said its third-quarter net profits fell as a result of charges related to its acquisition of fellow operator Brasil Telecom Participacoes (BrT). Telemar’s net income fell 71% year-on-year to BRL64 million (USD37.2 million), largely the result of BRL290 million-worth of non-recurring costs relating to the BrT purchase and its recent expansion in Sao Paulo state. Rio de Janeiro-based Telemar, which markets services under the banner Oi, paid BRL5.86 billion to buy its rival last year, and in the process increased its debt levels from BRL11.4 billion to BRL21.1 billion as at 30 September 2009. For its part, BrT reported 3Q09 net income of BRL259 million, compared with BRL210 million a year earlier.

Brazil, Oi