By Rogerio Jelmayer
SAO PAULO--Telefonica Brasil SA's (VIV, VIVT4.BR) second-quarter
net profit more than doubled in the period on a one-time gain
generated by changes in its tax basis.
The company, which is controlled by Spain's Telefonica SA (TEF,
TEF.MC), posted a net profit of 1.99 billion Brazilian reais ($897
million), up from BRL914.2 million in the year-ago period.
Telefonica Brasil said its review of tax basis to reflect
certain intangibles from the combination of businesses resulted in
a BRL1.19 billion positive effect on earnings.
Telefonica net revenue increased just 1.5% in the period to
BRL8.6 billion. Operational costs picked up 2.6% to BRL6.07
billion.
Revenue from mobile-phone services increased 6% to BRL5.53
billion, while revenue from fixed lines fell 5.4% to BRL2.79
billion.
Earnings before interest, taxes, depreciation and amortization
decreased to BRL2.54 billion from BRL2.58 billion. Ebitda margin
fell to 29.5% from 30.3%.
The company had 93.9 million customers at the end of the
quarter, up from 91.13 million in the year-ago period.
Telefonica Brasil is the largest mobile-phone company by market
share, according to telecommunications regulator Anatel.
In the second quarter, Telefonica Brasil invested a total of
BRL1.61 billion in its operations, up from BRL1.25 billion in the
year ago period.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
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