Oi posts 2% decline in 3Q15 revenue

13 Nov 2015

Brazilian telecoms operator Oi has reported total net revenues of BRL6.827 billion (USD1.81 billion) for the third quarter of 2015, representing a decrease of 2.0% from BRL6.968 billion in the year-ago period. Total net revenues in Brazil fell by 3.3% year-on-year to BRL6.515 million in 3Q15, mainly due to the impact of a cut in mobile termination rates (MTRs) in February 2015 and the outsourcing of handset operations. EBITDA declined 3.6% y-o-y to BRL2.178 billion, although this figure was 14.7% higher than the BRL1.899 billion reported in 2Q15. Routine EBITDA from the firm’s Brazilian operations reached BRL1.740 billion in the three months to end-September 2015, an increase of 10.6% y-o-y, thanks to the focus on cost efficiency and profitability of the existing customer base. Oi posted a consolidated net loss of BRL1.021 billion for third quarter of 2015, compared to net earnings of BRL5 million twelve months previously. The firm noted that ‘despite the challenging macroeconomic scenario, Oi has delivered consistent results for another quarter, in line to reach its 2015 guidance of routine EBITDA of BRL7.0 billion to BRL7.4 billion and operational cash flow improvement of BRL1.2 billion to BRL1.8 billion, both for the Brazilian operations’.

In operational terms, Oi reported a total of 47.059 million personal mobility revenue generating units (RGUs) at the end of September 2015, down by 3.9% year-on-year, while corporate/SME mobile RGUs fell by 1.9% to 2.424 million. Residential RGUs decreased by 5.0% from 17.401 million in 3Q14 to 16.524 million, of which 10.217 million were fixed telephony lines (down by 8.2%), 5.136 million were fixed broadband (down by 2.0%) and 1.171 million were pay-TV RGUs (up by 13.4% y-o-y).

Brazil, Oi