Brazilian operator Telecomunicacoes de Sao Paulo (Telesp) reported net profit of BRL622.7 million (USD373 million) in its fiscal fourth quarter ended 31 December 2010, up 9.2% year-on-year from BRL570.0 million previously, fuelled by an increase in local service revenues. Telesp, which is controlled by Spain’s Telefonica, said fourth-quarter net revenue was BRL5.42 billion, up from BRL5.39 billion a year earlier. Earnings before interest, taxes, depreciation and amortisation (EBTDA) fell 1.1% year-on-year to BRL1.42 billion. EBITDA margin, considered by many as a key indicator of profitability, was down at 35.6% however, from 36% in the year-earlier period. Telesp’s full year net profits reached BRL2.4 billion, up from BRL2.2 billion in 2009. Total CAPEX for 2010 was BRL2.4 billion, up 9.9% year-on-year.
In a separate development, the management of Brazilian cellco Vivo Participacoes has announced that on 16 February it submitted a Form 6-K to the Securities and Exchange Commission (SEC) concerning a tender offer by SP Telecomunicacoes (SP Telecom), a limited liability company organised under the laws of Brazil and controlled by Telefonica, to acquire all outstanding shares of common stock of Vivo not already owned by Telefonica in Brazil, on a cash basis. SP Telecom is the holding company that controls Telesp.