GVT reports 41% spike in revenues in FY11

1 Mar 2012

Brazilian broadband and telephony provider Global Village Telecom (GVT), owned by French media and telecoms conglomerate Vivendi, reported revenue of EUR1.446 billion (USD1.943 billion) in 2011, up 40.5% when compared to full year 2010. Broadband internet service revenues increased by 57.7% year-on-year it said, and voice service revenues climbed 34.2%, driven by GVT’s ongoing network expansion campaign and strong growth in its subscriber base. The cableco expanded its coverage to 22 additional cities during 2011 and now operates in 119 cities, helping boost its total RGU customer base to 6.326 million lines in service, up 49.5% y-o-y. Broadband subscribers reached 1.530 million at the end of December 2011, up from 1.095 million a year earlier, ending the period with a market share of 9.8%. Its performance was further enhanced by the October 2011 launch of a hybrid – Direct-To-Home (DTH) for linear broadcasting via satellite and IPTV – pay-TV service across its entire footprint, providing a variety of HD channels at competitive prices, as well as an extensive video-on-demand service and catch-up TV.

GVT booked EBITDA of EUR601 million in FY11, a 39.4% increase compared to 2010; EBITDA margin was 41.6%. Vivendi added though that, excluding the costs related to the launch of the new pay-TV service, GVT’s telecom EBITDA margin reached 42.7%, up 0.8 of a percentage point year-on-year. Full-year CAPEX to support the network expansion was EUR705 million, up 44.2% y-o-y.

Brazil, Global Village Telecom (GVT)