Oi says profits down due to lower revenue and change in accounting policy

16 Aug 2011

Brazilian fixed and mobile operator Tele Norte Leste Participacoes (TNL), which offers services under the banner Oi, has reported a roughly 50% fall in net income in the second quarter ended 30 June 2011, attributed to declining revenue at its fixed line business and the decision to switch to international accounting standards. Bloomberg reports that TNL’s net income (excluding minority interests) fell to BRL198 million (USD123.6 million) in the April-June quarter, down 51% from BRL407.7 million in Q2 2010. Rio de Janeiro-based TNL said second-quarter (gross) revenue from fixed line services dropped 8.4% to BRL7.83 billion although sales of mobile telephone services rose 7.1% to BRL2.97 billion.

Brazil, Oi