Embratel’s 2Q net profits fall to USD166m

27 Jul 2010

Brazilian long-distance telecommunications provider Embratel Participacoes says its net profit for the second quarter to 30 June 2010 fell to BRL291.7 million (USD166 million), from BRL403.4 million in the corresponding year-ago period, largely due to an increase in its debt-service costs. Embratel noted that the depreciation of the local currency, the Brazilian real, versus the US dollar, affected the telco’s exchange losses on dollar-denominated loans. Expenses and costs related to net exchange and monetary variation reached BRL105.2 million it said, reversing a gain of BRL245.7 million in 2Q09. The telco booked second-quarter net revenue of BRL2.75 billion, up 7.2% year-on-year, while EBITDA was BRL822.8 million, up from BRL660.3 million previously.