Embratel’s net income, revenues up in 2010

10 Feb 2011

Brazilian fixed line operator Embratel Participacoes reported fourth-quarter net revenues of BRL2.919 billion, up BRL152 million or 5.5% compared with the fourth quarter of 2009, mainly because of higher direct-to-home (DTH) TV service revenues. For the year, group revenues reached BRL11.231 billion it said, up 5.9% from BRL10.602 billion in FY2009. Embratel, a subsidiary of Latin American telecoms giant America Movil (AM), booked group EBITDA of BRL786 million in 4Q10, up 3.1% year-on-year, boosting the full year total to BRL3.268 billion (+16.3%), mainly the result of a reduction in costs of leased access to third parties.

Embratel’s strong growth in the fourth quarter was driven by a 461.8% jump in revenues from DTH services to BRL454 million, a 13.1% rise (BRL279 million) in revenue from local call services and a 4.7% increase in data services revenues to BRL142 million. On the downside, sales derived from long-distance telephony services decreased by 13.9% to BRL58 million.

Brazil