Brazilian telecoms operator Telemar Norte Leste (TNL), which markets fixed and mobile services under the Oi banner, reported a net loss of BRL395 million (USD252.5 million) in the first three months of this year, reversing net profit of BRL518 million in Q1 2010. The company attributed the results to the negative impact of BRL600 million in one-time items related in the main to financing and provisioning. TNL booked revenues of BRL6.93 billion in the period under review, down 7.1% year-on-year, attributable to intense sector competition which forced it to extend discounts in order to keep pace with rivals. The telco’s mobile arm posted a 1.3% y-o-y decline in turnover to BRL1.70 billion, while wireline revenue slumped 8.7% to BRL5.16 billion, it said. Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) reached BRL1.985 billion, down 21.8% on 1Q10, and EBITDA margin narrowed from 34.0% to 28.6% over the same period.
On a more positive note, TNL reported a steady rise in revenue generating units (RGUs) over the year. The telco ended March 2011 with 66.043 million RGUs, up 6.1% year-on-year and up 3.3% quarter-on-quarter, boosted by its mobile division where mobile subscribers increased 13.3% to 41.472 million. Oi said it added a net 2.20 million new mobile users in 1Q11. Further, Oi’s broadband user base increased 5.8% y-o-y to 4.513 million (first-quarter net adds reaching 159,000), of which 14% of users were hooked up to a connection of 4Mbps or higher. At the same date Oi reported 666,000 mobile broadband customers, up 36.5% year-on-year, 311,000 pay-TV customers (up 9.9%) and 19.747 million main lines in service (down 6.3%).