Telemar (Oi) sees drip drip fall in share price as market share worsens

22 Sep 2010

Shares in Telemar Norte Leste (TNL), the operating arm of Brazil’s biggest telco by subscribers, fell for a sixth day running after data confirmed its cellular arm continues to lose market share to competitors. TNL, which markets its services under the banner Oi, saw its share price dip 1.1% on the local bourse – its lowest closing price since 31 August – while parent and holding company Tele Norte Leste Participacoes fell 0.7%. According to data published by Brazil’s telecoms regulator Anatel, Oi’s share of the local mobile market slipped to 19.74% in August, from 19.93% a month earlier, with the unit posting the smallest net monthly gain of any of the big service providers. The fall prompted Goldman Sachs to write: ‘Oi continues to lag … We expect continued weakness as it reduced marketing efforts to preserve cash.’ By contrast mobile market leader Vivo Participacoes added six times as many new subscribers as Oi last month.

Brazil, Oi