Brazil’s Oi looking for international expansion after the completion of BrT integration
According to the chief Exeutive of Brazil’s Oi, Brazil’s largest telecoms operator by subscribers, the company has big plans to expand its footprint on the international stage, once it is through with the full integration of fellow operator, Brasil Telecom (BrT).
The Oi chief executive Luiz Eduardo Falco opined that the global economic credit crisis has weakened possible takeover targets, making potential suitors more cautious about going after them. However he believed that the situation also opens opportunities for the company to take their first step abroad. All they need to do is to integrate Brasil Telecom.
Though the company didn’t disclose the name of its potential targets, it mentioned that they are looking for opportunities in Argentina, Colombia, Uruguay, the Middle East and Africa.
Brazilian telco Oi reports fall in revenue
www.WirelessFederation.com/news: A heavy fourth-quarter loss of 365 million Brazilian reals ($207 million) due to non-recurring expenses and declining revenue has been posted by Brazil’s largest telecommunications company, Oi. A net profit of BRL13 million was generated by the company in the fourth quarter of 2008.
EBITDA of the company came down from BRL2.44 billion in the year-earlier quarter to BRL2.37 billion while the EBITDA margin dropped to 31.4% in the fourth quarter from 31.9% in the same period the prior year. Due to sliding fixed-line telephone usage, the fourth-quarter net revenue went down to BRL7.5 billion, from BRL7.6 billion a year earlier.
Due to the expenses on legal action related to the integration of rival operator Brasil Telecom and deferment of subsidies on prepaid phones, Oi recorded non-recurring costs of BRL305 million. A swallow increased costs has been suffered by the company because of the integration of Brasil Telecom and the entrance into the Sao Paulo mobile phone market last year.
The company’s debt level rose to 2.2 times earnings before interest, tax, depreciation and amortization, or EBITDA, in 2009 following the purchase of Brasil Telecom, a rival operator, and the campaign to enter into the Sao Paulo mobile market.
Brazilian telco Oi to invest $1.7bn-$2.3bn in 2010
www.WirelessFederation.com/news: An investment of 3 billion to 4 billion Brazilian reals ($1.7 billion to $2.3 billion) in 2010 has been considered by Brazil’s largest telecommunications company, Tele Norte Leste Participacoes S/A. The focus of the investment is on expanding broadband Internet capacity for fixed and mobile networks.
BRL5.1 billion was invested by the operator in 2009 and 70% of that amount was pumped into networks. The investment will also allow the company to reduce debt levels. The company’s debt level rose to 2.2 times earnings before interest, tax, depreciation and amortization, or EBITDA, in 2009 following the purchase of Brasil Telecom, a rival operator, and the campaign to enter into the Sao Paulo mobile market.
The aim of the company is to reduce that debt amount to 1.7 times to 1.9 times EBITDA by the end of this year. There are probabilities that the Sao Paulo mobile operation reach break-even in April of this year, which will take some pressure off finances.
Brasil Telecom GSM reaches 3 million client mark
Brasil Telecom GSM, which this month celebrates two years of operating, announced it has a total of 3 million clients. BrT GSM’s goal is to arrive at 3.3 million clients by the end of the year, representing a 50 percent growth on the total number of clients at the beginning of the year. According to national telecom regulator Anatel, the operator had a 3.07 percent share of the Brazilian mobile telephony market, after Vivo, TIM, Claro, Oi and the Telemig/Amazonia Celular group.
Source- http://www.telecompaper.com
Technorati : Brazil, GSM, Mobile, Telecom
Ice Rocket : Brazil, GSM, Mobile, Telecom
