SAO PAULO--Brazil's leading mobile phone operator, Vivo
Participacoes SA, on Wednesday reported a second-quarter net profit
of 914.2 million Brazilian reais ($409 million), 16% lower than in
the second-quarter of 2012.
The company's second quarter net operational revenue reached
BRL8.5 billion, up 3% against the second quarter of 2012. Profits
were hurt by rising operational costs, the company said.
Provisioning against customer arrears also rose during the quarter,
the company said.
Vivo's earnings before interest, taxes, depreciation and
amortization, or EBITDA, were BRL2.6 billion in the second quarter,
16.7% lower than in the second quarter of 2012.
The EBITDA margin, a measure of profitability over net revenue,
was 30.3%, in part due to the sale of assets. Excluding the sale,
the company's EBITDA margin was 29.4%, compared with a margin of
33.1%, a year earlier.
Vivo is controlled by Spain's Telefonica (TEF, TEF.MC).
Write to Luciana Magalhaes at luciana.magalhaes@dowjones.com
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