Vivendi’s Philippe Capron forecasts 35% rise in GVT revenue this year

8 Mar 2012

Vivendi chief financial officer Philippe Capron says he expects the group’s Brazilian asset Global Village Telecom (GVT) to expand its revenues by 35% this year. The telco, which provides fixed and broadband services in Brazil, booked full year revenue of EUR1.446 billion (USD1.943 billion) in FY2011, up 40.5% when compared to 2010. Broadband internet service revenues increased by 57.7% year-on-year, 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 (LIS), 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, a market share of 9.8%.

In a conference call to investors, Capron said he expected GVT’s EBITDA margin to grow to approximately 40%, despite costs related to the ongoing rollout of its pay-TV operation this year. The operator launched pay-TV services in late-2011, and BNamericas quotes Vivendi’s chairman and CEO Jean-Bernard Levy as saying that ‘after two months, we already have 80,000 subscribers’. GVT intends to invest EUR1 billion in 2012 to take advantage of the window of opportunity. ‘This will be a growth driver for us, which will be added to existing businesses for us in the internet segment in Brazil,’ Levy added. GVT offers pay-TV through a hybrid IP and DTH technology platform.

Brazil, Global Village Telecom (GVT)