Brazilian owned telecoms group Oi SA, formed through the restructuring of Telemar Participacoes’ former operating divisions Brasil Telecom, Tele Norte Leste Participacoes, Coari Participacoes and Telemar Norte Leste, has reported a near five-fold increase in net profits for the three months ended 30 September 2012, aided by its efforts to control expenses and reduce its debt servicing costs.
Oi SA booked net income of BRL315 million (USD153 million) for the three months under review, up from BRL64 million in Q2 2012, adding that it is currently unable to provide a year-on-year comparison due to the extensive restructuring undertaken by the company – and completed earlier this year. Consolidated expenses reached BRL4.8 billion for Q3 2012, up 1.8% quarter-on-quarter, on net revenue that increased from BRL6.9billion to BRL7.0 billion. Further, Oi SA said that its debt servicing costs dipped to BRL554 million from BRL692 million and net debt stood at BRL24.48 billion at 30 September, up from BRL23.50 billion previously. Earnings before interest, taxes, depreciation and amortisation rose to BRL2.18 billion from BRL2.14 billion.