Brazilian telecoms operator Oi SA has reported total net revenues of BRL13.824 billion (USD3.958 billion) for the six months ending 30 June 2015, representing a 3.0% drop year-on-year. EBITDA plummeted 20.3% on an annualised basis to BRL3.910 billion, although the telco notes that routine EBITDA (excluding one-off gains and losses that cannot be predicted, such as asset disposals) increased 10.5% y-o-y to BRL3.958 billion. Meanwhile, the company’s consolidated net earnings for the six months under review surged from BRL10 million to BRL224 million. Oi notes that the figures include the discontinuation of its loss-making Portuguese unit, PT Portugal SGPS (PT Portugal), which closed on 2 June 2015.
In operational terms, Oi reported a total of 72.975 million revenue generating units (RGUs) as at 30 June, down 2.6% from 74.895 million one year earlier. The lion’s share of subscriber accounts were attributed to Oi’s mobile unit: 47.756 million, down 1.8% from 48.618 million y-o-y.
A company press release noted: ‘Our largest and most important infrastructure projects are coming in ahead of schedule and under budget despite current difficult conditions. As a result, we are not only reducing our CAPEX but also delivering objective network improvements … In the second half we expect cash burn to be lower as one offs from 1H15 do not recur and as working capital should improve. The company has begun its liability management programme in the wake of the sale of PT Portugal and is focused on continuing asset sales, reduction of financial expenses, extension of maturities and strengthening the balance sheet’.