Oi posts surprise loss

15 Aug 2013

Brazilian service provider Oi has posted net revenue of BRL7.1 billion (USD3.1 billion) for the second quarter of 2013, up 2.4% year-on-year on the back of pay-TV and broadband growth in the company’s Residential segment, and higher data and IT revenues from its Corporate segment. However, the operator also reported a net loss of BRL124 million versus a net profit of BRL347 million for the corresponding period last year. In response, Oi has cut its dividend and scrapped its performance forecasts for next three years, saying it needs financial flexibility in the face of volatile market conditions. The company’s bottom line was impacted by higher provisions for bad debt and increased marketing and personnel expenses.

At 30 June 2013 Oi had 46.896 million residential wireless subscribers (3.8% y-o-y), 2.834 million business wireless subscribers (9.2%), 5.296 million residential fixed broadband subscribers (10.2%), 615,000 corporate fixed broadband subscribers (16.9%) and 900,000 pay-TV subscribers (+84.8%).

Brazil, Oi