Net: subscriber gains fuel strong revenue, profit growth in 2012

13 Feb 2013

The largest cable operator in Brazil, Net Servicos de Comunicacao (Net) has published its fourth quarter and full year results for the twelve months ended 31 December 2012. The service provider, which offers integrated services including pay-TV (branded NET), digital video (NET Digital), broadband internet access (NET Vírtua) and voice telephony (NET Fone, via sister company Embratel), said net revenue grew by 19.9%, from BRL1.788 billion (USD907.7 million) in 4Q11 to BRL2.144 billion in 4Q12, while full year sales of BRL7.938 billion, were 18.6% higher than the BRL6.696 billion reported in FY2011 – chiefly down to expansion of the group’s overall subscriber base.

Net closed out last year as the leading provider of pay-TV services to the residential market in Brazil, with 5.381 million customers, up 13.8% year-on-year, while its broadband base climbed 28.9% to 5.498 million and voice telephony connections reached 4.977 million (up 29.5%).

The altnet said operating costs totalled BRL1.023 billion in 4Q12, an increase of 22.8% up on the 4Q11 figure, and BRL3.879 billion in full-year 2012, a 20.4% increase on the BRL3.224 billion in costs posted in 2011, mainly due to business growth. Earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at BRL643.2 million in 4Q12, with an EBITDA margin of 30.0%. In annual terms, EBITDA rose by 14.9% it BRL2.231 billion, from BRL1.942 billion, recording a 28.1% EBITDA Margin against 29.0% in 2011. Net income in Q4 2012 totalled BRL141/5 million, up from BRL118.2 million in the corresponding period of 2011. Full year net profit topped BRL393.7 million, up 5.5% compared to BRL373.2 million in 2011.