By Rogerio Jelmayer
SAO PAULO--Telefonica Brasil SA's (VIV, VIVT4.BR) first-quarter
net profit dropped 18.4% on the year, due to the rise in its
debt-service and operational costs, it said Thursday.
The company, which is controlled by Spain's Telefonica SA (TEF,
TEF.MC), posted a net profit of 660.8 million Brazilian reais ($296
million), down from BRL810.2 million in the year-ago period.
Telefonica's debt-service costs totaled BRL626 million in the
first quarter, almost double compared with BRL381 million in the
year-ago period. The company's debt-service costs increased, among
other reasons, because of the interest rate increase in Brazil.
Operational costs increased 4.2% to BRL6.04 billion.
In the meantime, net revenue totaled BRL8.61 billion in the
first quarter, up just 0.7% from BRL8.55 billion a year ago.
Revenue from mobile-phone services increased 3.3% to BRL5.4
billion, while revenue from fixed lines fell 2.3% to BRL2.85
billion.
Earnings before interest, taxes, depreciation and amortization
decreased to BRL2.56 billion from BRL2.75 billion. Ebitda margin
fell to 29.8% from 32.1%.
It had 93.85 million customers at the end of the quarter,
compared with 90.85 million in the year-ago period.
Telefonica Brasil is the largest mobile-phone company by market
share, according to telecommunications regulator Anatel.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
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