Embratel posts small rise in 1Q10 net income

Brazilian long-distance telecommunications provider Embratel Participacoes (Embratel) has released its financial results for the first quarter of this year, reporting net profits of BRL271.1 million (USD155.0 million), up from BRL216.7 million in the same period a year ago, due to an increase in revenues and lower costs. The telco, which is controlled by Mexican powerhouse Telefonos de Mexico (Telmex), booked first-quarter net revenues of BRL2.74 billion, up 6.3% year-on-year while earnings before interest, taxes, depreciation and amortisation (EBITDA) totalled BRL810.9 million in the period under review, compared with BRL660.6 million in 1Q09. The group’s EBITDA margin rose to 29.6% from 25.6% previously, while gross debt climbed from BRL1.84 billion as at end-2009, to BRL2.05 billion three months later.