Telesp: Q2 net profit climbs 10% to USD393m

29 Jul 2010

Telecomunicacoes de Sao Paulo (Telesp), a fixed line telecommunications company in Brazil’s Sao Paulo state, booked consolidated second quarter net profits of BRL695 million (USD393 million), up 10% from BRL630.3 million in the second quarter of 2009. Gross operating revenue reached BRL5.299 billion, it said, down from BRL5.383 billion previously, while EBITDA of BRL1.515 billion continued to show a recovery trend related to previous quarters, despite falling 3.9% when compared with 2Q09. CAPEX in the second quarter of 2010 was BRL461.1 million, equivalent to 11.8% of the operator’s net operating revenues, compared to 12.7% in 2Q09.

Operationally, Telesp said that in the second quarter of 2010 it achieved the highest ever level of net additions for its broadband service Speedy (173,000) for a total of 2.972 million and on 16 July reached the three million clients milestone. Also, and for the first time since 2006, the company reported positive net additions in fixed lines in service in the second quarter, with the total climbing to 11.261 million in June, up from 11.197 million in 1Q10. Of the total, residential lines accounted for 8.007 million connections (from 7.983 million in 1Q10), business lines 2.611 million (2.573 million) and public phone lines 251,000 (unchanged). Pay-TV subscribers were also broadly unchanged at 469,000.

Brazil, Telefonica Brasil (Vivo)