Total revenues increased 2.9% to reach $2.54 billion for the quarter ending September 30, 2007 from $2.46 billion in the previous year driven by increase in wireless services revenues.
The company recorded a quarter-on-quarter increase of 1.8%, 19.5% and 36% in revenues, EBITDA and net profit, respectively, in third quarter 2007.
Its capital expenditure decreased 7% year-on-year, from $353m to $327m. The company is planning to invest approximately $457m in the fourth quarter, and expects its fiscal 2007 capital expenditure to reach $1.2 billion, down from the previous forecast of $1.4 billion.
The revenue from wireless services increased as a result of the increase in monthly subscriptions and outgoing calls. The increase in monthly subscriptions was driven by the new high-end customers added to the company’s convergent plans (Oi Conta Total), while the outgoing calls increased as a result of the success of ‘Oi Ligadores’ campaign, which attracted 2.5 million new customers since its launch in July 2007.
At the end of September 2007, Oi had 14.3 million fixed lines in service, a decrease of 0.8% compared to last year. However, it recorded a 17.9% increase in mobile subscribers, reaching 14.9 million. Its blended ARPU decreased from $12.8 to $12.7. Velox, its broadband service reported a 33.2% rise in customers to 1.4 million.
Oi’s competitor Brasil Telecom has recorded an increase of 5% in its revenues for the third quarter, from $1.5 billion in 2006 to $1.57 billion this year. EBITDA increased to $554.5m from $519m in the previous year, while net income increased to $85.9m compared to $36.6m in the previous year.
Source: ComputerWire daily updates
