Oi 3Q16 revenues slump 6.3%

11 Nov 2016

Brazilian telecoms operator Oi has reported total net revenues of BRL6.394 billion (USD1.946 billion) for the three months ended 30 September 2016, down 6.3% year-on-year, attributing the weakened top-line to cuts in the interconnection rates and fixed-to-mobile regulated tariffs, as well as its reduced customer base. EBITDA plummeted 24.5% on an annualised basis to BRL1.645 billion, while Oi reported a net loss of BRL1.015 billion for 3Q16, compared to a BRL1.027 billion deficit in the year-ago period. The telco’s net debt stood at BRL41.184 billion at end-September 2016, up 10.6% from BRL37.241 billion one year earlier.

In operational terms, Oi reported a total of 67.890 million revenue generating units (RGUs) as at 30 September, down 5.5% from 71.838 million one year earlier. The lion’s share of subscriber accounts were attributed to Oi’s ‘personal mobility’ unit: 44.118 million, down 6.3% from 47.059 million y-o-y. ‘Residential’ customers dropped 2.5% to 16.105 million, while the company’s ‘B2B’ unit saw its subscriber accounts fall 7.6% to 7.023 million. Meanwhile, the number of public telephones in use fell 1.2%, from 651,000 to 644,000. Oi notes that its 2G coverage reached 3,402 municipalities in 3Q16 (93% of the country’s urban population), while 3G coverage extended to 1,478 municipalities (80%). Furthermore, 4G LTE coverage had been expanded to 133 municipalities, serving around 51% of Brazil’s urban population.

In an update on its perilous financial situation, the telco said: ‘Despite the complexity of the judicial reorganisation process, Oi has been complying with the terms and procedures required by law. The operations and relations with customers, suppliers and partners are being conducted on a business-as-usual basis.’

Brazil, Oi