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Oi posts 4.5% drop in Q3 revenue

14 Nov 2014

Brazilian telecoms group Oi SA has announced net revenues of BRL8.842 billion (USD3.43 billion) for the third quarter of 2014, a decrease of 4.5% from BRL9.263 billion in the year-ago period, as domestic turnover dropped 5.1% year-on-year to BRL6.738 billion. The main factors for the fall in Brazilian revenues were the regulated cut in mobile interconnection rates; a decline in fixed-to-mobile tariffs for local and long-distance calls, and mobile-to-mobile long distance calls; a drop in the fixed line customer base; and a less favourable macroeconomic environment. Revenue generated by the firm’s Portuguese assets (PT Portugal) totalled BRL1.833 billion in the three months to end-September 2014, down by 4.5% compared to BRL1.919 billion in 3Q13, while net turnover from other international assets – most of which were classified as held-for-sale assets on 30 September 2014 – grew 10.5% year-on-year to BRL271 million. Group EBITDA decreased 1.5% from BRL3.050 billion in the third quarter of 2013 to BRL3.003 billion twelve months later. Oi reported that net earnings, which consolidate PT Portugal since the capital increase concluded on 5 May 2014, totalled BRL8 million in 3Q14, compared to BRL172 million in the year-ago quarter.

Total Brazilian revenue generating units (RGUs) stood at 75.035 million at the end of September 2014, a slight increase of 0.2% year-on-year, including 48.976 million personal mobile customers (up 3.5%) and 5.241 million residential fixed broadband RGUs (down 1.8%). In Portugal, RGUs reached 13.125 million, compared to 12.944 million twelve months earlier. The 3Q14 total includes 6.336 million personal mobile RGUs, up slightly from 6.320 million at the end of September 2013. Portuguese residential fixed broadband customers increased by 5.5% year-on-year to 1.075 million.

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