Brazilian mobile operator VIVO Participacoes has reported a net profit of $2.5m in the third quarter ended September 2007 compared to a net loss of $112.6m in 2006. The company cited a reduction in both costs and expenses.
Vivo posted a year-on-year increase of 15% in its revenues to reach $1,854m for the third quarter of 2007 compared to $1,612m in the previous year. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 16.4% year-on-year to $475.6m in quarter ended September 2007 compared $405.5m in the previous year.
The company recorded a quarter-on-quarter increase of 7.5% and 31.4% in revenues and EBITDA respectively, in third quarter 2007. It recorded net loss of $64.4m in the second quarter of 2007.
Vivo has recorded several achievements in the third quarter of 2007, including an agreement to acquire control of Telemig Celular, which has already been approved by Brazil’s telecom Regulator Anatel, and Amazonia Celular, which is still being analyzed by the agency. At the end of September 2007, the company recorded a total subscriber base of 31.3 million, including both CDMA and GSM subscribers, which was a year-on-year increase of 3.6%.
It also acquired frequency spectrum and licenses to operate in areas where it currently does not have a commercial presence, especially the Northeast part of Brazil, and increase network capacity in our existing areas.
The provision for bad debt was $45.9m in the quarter, representing 1.7% of the gross revenue, a reduction of 45.6% in relation to 3Q06 and of 20.6% when compared to 2Q07. The operating cash flow plus the change in working capital recorded $549m in the year-to-date figure. Additionally, the net debt recorded a year-on-year decrease of 28.7% to reach $1,688m in third quarter of 2007.
VIVO’s closest competitor Claro has recorded a year-on-year increase of 19% in its revenues, to $1,448.7m for the third quarter ended September 2007 compared to $1,218.1m in 2006, while the EBITDA increased to $362.5m from $162m in the previous year. It recorded a subscriber base of 28 million at the end of third quarter 2007.
Source: ComputerWire daily updates