Brazil’s Net posts sharp rise in Q3 revenue, but net income slumps

25 Oct 2013

Net Servicos, the largest cable operator in Brazil and Latin America, has published its results for the third quarter ending 30 September 2013. Net, which offers integrated services that include pay-TV (NET), Digital Video (NET Digital), High Definition Digital Video (NET Digital HD), bidirectional broadband internet access (NET Vírtua) and voice telephony (NET Fone via Embratel), booked net revenue of BRL2.47 billion (USD1.13 billion ), up 21.8% from the BRL2.03 billion it reported in the third quarter of 2012, mainly driven by the expansion of the operators’ subscriber base. 9M13 net revenue climbed 22.2% to BRL7.08 billion. Earnings before interest, income taxes including Social Contribution on net income, depreciation and amortisation (EBITDA) reached BRL677.4 million in the period under review, compared to BRL558.8 million in 3Q12, an increase of 21.2%; 9M13 EBITDA was BRL1.92 billion (+20.9%). However, net income for July-September 2013 totalled BRL45.47 million, down 57.9% from BRL108.02 million a year earlier

In terms of recent business developments, Net reported that in September 2013 the company launched ‘Combo Multi’, a complete and convergent telecommunications services, including cable TV in high definition, broadband, fixed telephony and mobile telephony. The operator claims that the new plans offer attractive prices and benefits to customers, including the offer of unlimited NET Fone calls to fixed lines of any other operator, between Claro’s mobile terminals as well as between NET Fone and Claro’s mobiles.