By Rogerio Jelmayer 
 

SAO PAULO--Telefonica Brasil SA (VIVT4.BR) posted a 9% increase in net profit for the fourth quarter, as higher revenues and cost-cutting efforts helped to offset a decline in mobile-phone subscriptions.

The company, which is controlled by Spain's Telefonica SA (TEF.MC), reported a net profit of 1.21 billion Brazilian reais ($390.8 million), up from 1.11 billion reais in the year-ago period.

Telefonica's operating costs fell 1.1% in the period to 7.25 billion reais, while net revenue rose 1% to 10.87 billion reais.

The company said it had 97.12 million customers at the end of the quarter, down from 97.2 million the previous year.

After years of double-digit expansion, the country's mobile market now faces challenges from a weak economy and a high unemployment rate, discouraging buyers, economists say. Brazil's economy is projected to shrink by 3.5% in 2016, after contracting by 3.8% in 2015.

Telefonica Brasil is Brazil's largest mobile-phone company by market share, according to telecommunications regulator Anatel.

 

Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com

 

(END) Dow Jones Newswires

February 22, 2017 05:56 ET (10:56 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
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