Vivo 3Q net profit up 81%; beats market expectations

11 Nov 2010

Brazil’s leading mobile operator by subscribers, Vivo Participacoes, booked an 81% year-on-year increase in net profit for the three months to 30 September, easily eclipsing market estimates, as it signed up more users and slashed depreciation costs. Net profit for the three-month period soared to BRL601.8 million (USD354.6 million), up from BRL332.7 million in the corresponding year-earlier period, far higher than the BRL430 million average estimate by five analysts in a Reuters poll. Vivo’s turnover increased 10.4% over the same period to BRL4.61 billion on the back of an 18.2% rise in subscribers to 57.7 million. EBITDA rose to BRL1.54 billion from BRL1.39 billion previously, as depreciation and amortisation costs dropped nearly 30% to BRL556.1 million, helping boost its bottom line.