Telefonica Brasil Net Profit Rose 9.6% in 3rd Quarter
26 October 2016 - 9:07PM
Dow Jones News
By Rogerio Jelmayer
SAO PAULO--Telefonica Brasil SA (VIVT4.BR) posted a 9.6% net
profit increase in the third quarter, as a combination of cost
cutting and rising revenue streams offset a decline in mobile-phone
subscriptions.
The company, which is controlled by Spain's Telefonica SA
(TEF.MC), recorded a net profit of 952.7 million Brazilian reais
($307.3 million), up from BRL869.3 million in the year-ago
period.
Telefonica's operating costs dropped 2.2% in the period to
BRL7.28 billion, while net revenue rose 1.1% to BRL10.69 billion.
Revenue from data and digital services advanced 23.3% to BRL3.6
billion.
The company said it ended the third quarter with 97.2 million
customers, down from 103.67 million in the year-earlier period.
After consecutive years of double-digit expansion, the country's
mobile market is facing challenges stemming from a weak economy,
with high inflation and interest rates discouraging buyers,
according to economists. After contracting 3.8% last year, Brazil's
economy is expected to shrink 3.2% this year.
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
October 26, 2016 05:52 ET (09:52 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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