Net says third-quarter profit quadrupled on exchange rate gains

9 Nov 2012

Brazilian cableco Net Servicos de Comunicacao (Net) says favourable exchange rates were the reason why its third-quarter net profit quadrupled to BRL108 million (USD53.3 million) from BRL23.6 million in 3Q11. The company, which is controlled by America Movil (AM) of Mexico, confirmed that its results were boosted by the depreciation of the Brazilian real versus the US dollar in the third quarter, adding that income for the period was ‘substantially influenced by the positive effects of exchange rate changes.’ The real fell 13% against the dollar compared with 3Q11.

Net Servicos reported third-quarter revenue of BRL2.03 billion in July-September, up from BRL1.7 billion in the three months ended 30 September 2011. Earnings before interest, taxes, depreciation and amortisation (EBITDA) was BRL559 million, up from BRL486 million a year earlier.