World VoIP NewsNet Servicos posts fall in Q1 net incomeNet Servicos posts fall in Q1 net income

Net Servicos posts fall in Q1 net income


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Brazil’s largest cable TV and internet services provider by subscribers, Net Servicos de Comunicacao (Net Servicos) said first-quarter profit for the three months to 31 March fell 62% year-on-year on the back of a rise in operating costs and other expenses.

The publication of its financial results saw the group’s share price slump to a seven-month low in early trading.

The cablecos reported net income of BRL45.9 million (USD26 million) in the period under review, down from BRL120.1 million in 1Q09, although first-quarter revenues climbed 16% y-o-y to BRL1.26 billion. Group operating costs increased 17% to BRL601.4 million, Net Servicos said, while the operator’s financial expenses more than doubled to BRL76.6 million, impacted by a decline in the local currency, the real, against the US dollar, which increased the net value of the cable provider’s foreign-currency debt.

 



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