Net Servicos’ Q3 profit forced down by forex effects; EBITDA up 14%

28 Oct 2010

Brazilian triple-play cable TV operator Net Servicos posted a heavy fall in third-quarter net profit to BRL72 million (USD42.3 million), down from BRL298 million in the year-earlier period, which it attributed to the depreciation of the Brazilian real versus the US dollar, which had an impact on its debt servicing costs. Dow Jones Newswires reports that the cableco’s profit drop came despite a 16% year-on-year rise in net revenues to BRL1.38 billion, driven by subscriber growth including a 19% increase in cable broadband subscriptions. Net Servicos’ EBITDA in July-September was BRL369 million, up by 14.2% from BRL323 million a year earlier, whilst EBITDA margin remained flat y-o-y at 27%. The company said cable TV subscriptions rose 12% to 4.06 million at end-September 2010, while broadband internet subscriptions increased 19% to 3.3 million and VoIP telephone users rose 20% to 2.98 million. The group’s net debt ended the third quarter at BRL1.3 billion, up from BRL1.03 billion twelve months earlier.