Telefonica Brazil’s net profits continue to grow in 3Q

11 Nov 2011

Telefonica Brazil has posted net profit of BRL1.33 billion (USD754 million) for the July-September 2011 quarter, up 6.6% year-on-year, on revenues that climbed to BRL8.26 billion from BRL7.90 billion in the year-earlier period. The group’s results included its fixed line operations as well as mobile business Vivo Participacoes. Earlier this year, Telefonica of Spain – which controls both companies – integrated the fixed and mobile divisions into a unified business, Telesp. The operator said 3Q11 EBITDA slipped 0.8% to BRL2.82 billion; the EBITDA margin was 34.2%, down from 37.2% in 3Q10. Telefonica Brazil confirmed that sliding profits resulted from stiff competition and as its Spanish parent invested in the rollout of new products and promotions to increase its share of a market that is booming thanks to an affluent middle class segment which is looking to spend more on smartphones and broadband internet access.

Brazil, Telefonica Brasil (Vivo)