Oi back in the black in 4Q10

7 Mar 2011

Brazilian fixed and mobile telecommunications group Tele Norte Leste Participacoes (TNL) reported net profit of BRL284 million (USD172 million) in the fourth quarter of 2010, reversing a loss of BRL597 million in the corresponding period a year ago. TNL, which operates under the Oi banner, attributed the turnaround to growth from cellular operations which offset its stagnating fixed line business. In 4Q10, the telco booked net revenue of BRL7.3 billion, down from BRL7.58 billion in the same period a year ago – a period in which its net losses were the result of non-recurring provisions of BRL1.29 billion related to legal action against Brasil Telecom, a rival operator it purchased in 2008. TNL’s EBITDA improved slightly to BRL2.27 billion from BRL2.21 billion previously.

The telco closed out the year with a total of 20.02 million fixed lines in service, down from 21.29 million a year earlier, while fixed broadband connections climbed to 4.35 million from 4.20 million and registered mobile SIMs were up to 39.3 million, from 36.1 million in the year-ago period. For FY2010 TNL posted a net profit of BRL1.75 billion, down from BRL5.10 billion in 2010. Net debt fell from BRL21.90 billion to BRL18.70 billion.

Brazil, Oi