By Rogerio Jelmayer
SAO PAULO--Telefonica Brasil SA's (VIV, VIVT4.BR) third-quarter
net profit increased 34.5% in the period as the company reported
lower operating and debt-service costs.
The company, which is controlled by Spain's Telefonica SA (TEF,
TEF.MC), posted a net profit of 1.02 billion Brazilian reais ($400
million), up from BRL760 million in the year-ago period.
Telefonica's operating costs decreased 1% in the period to
BRL6.17 billion, while company's debt-service costs dropped 3.9% to
BRL616.4 million.
The company's net revenue increased just 1.2% in the period to
BRL8.7 billion. Revenue from mobile-phone services increased 3.5%
to BRL5.63 billion, while revenue from fixed lines fell 3.2% to
BRL2.79 billion.
Earnings before interest, taxes, depreciation and amortization
increased to BRL2.55 billion from BRL2.38 billion. Ebitda margin
fell to 29.5% from 30.3%.
The company had 95.4 million customers at the end of the
quarter, up from 91.7 million in the year-ago period.
Telefonica Brasil is the largest mobile-phone company by market
share, according to telecommunications regulator Anatel.
In the third quarter, Telefonica Brasil invested a total of
BRL1.56 billion in its operations, down from BRL1.87 billion in the
year ago period.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
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