Oi records an 80% drop in profit
Gabriel Miramar-Garcia ©RapidTVNews | 03-04-2012
Incumbent telecom carrier Oi SA (formerly) Brasil Telecom, has reported a 80% drop in fourth-quarter profit, thanks to big expenses related to its restructuring plans.
Net income of the Rio de Janeiro-based company was 140.7 million reais, compared with 704.8 million reais a year earlier, according to a regulatory filing. Financial expenses increased to 475.6 million reais, from 310.7 million reais a year earlier, the company said.
The results come as the company looks to simplify its structure in order to bolster efficiency. But the restructuring requires minority shareholder buybacks for those that want to divest, so it's unlikely that the comapny's financials will improve significantly in the next quarter. Oi may spend about 2 billion reais in buy-backs.
Oi provides cable service under the WAY TV brand in the cities of Belo Horizonte, Poços de Caldas, Uberlândia and Barbacena, all in the state of Minas Gerais. It also offers satellite service in 14 Brazilian states and the Federal District, and has plans to roll out IPTV for its premium subscribers.