Oi SA beats forecasts in Q3

14 Nov 2013

Brazilian owned telecoms carrier Oi SA reported a net profit of BRL172 million (USD73.9 million) for the quarter ending 30 September 2013, down 71% from a year earlier, but well above a Reuters’ poll of analysts who forecast average earnings of BRL123 million – with some market watchers actually anticipating a net loss for the group. Earnings before interest, taxes, depreciation and amortisation (EBITDA) dipped 2 % year-on-year to BRL2.139 billion, again beating the average forecast of EBITDA of BRL1.909 billion. The company’s new chief executive officer Zeinal Abedin Mahomed Bava has committed to trimming debt and cutting capital expenditure in 2014, in order to free up cash flow and get its high levels of debt under control. ‘Capital expenditures next year will be below BRL6 billion,’ Mr Bava said, adding that the group is committed to correcting its cash flow trend and reducing debt, which is seen as strategically imperative for Oi SA. Turning to its operational performance, the CEO said: ‘Revenue-generating units … grew 2.2% over the third quarter of 2012 and remain stable in the quarter. We now have 74.9 million customers in Oi SA. Also we’d like to mention to you that just in terms of financial highlights, when it comes to operating costs and expenses, our operating costs and expenses sequentially were down 6%. They were up 2.3% compared to the same period last year. And as I mentioned earlier, provision for bad debt in the third quarter 2013 was BRL201 million, whereas in third quarter 2012 was BRL75 million’.

Brazil, Oi