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 Friday, December 14, 2012

Brazilian cable services operator Net Servicos (Net) now has more than five million residential broadband subscribers in the country, Telecompaper reports without citing its sources. The cableco, which offers high speed internet access under the Net Virtua banner, says it reached the milestone in September, and now claims to be the market leader in that particular segment. Recent successes in subscriber take-up have been driven by the success of its convergence strategy – offered via Net Combo. Net says that four out of five subscribing households currently take at least two of the three services on offer – voice telephony, broadband internet and pay-TV – and that its network now passes six million homes.

Earlier this month the cableco reported that favourable exchange rates were the reason why its third-quarter net profit quadrupled to BRL108 million (USD53.3 million) from BRL23.6 million in 3Q11. The company, which is controlled by America Movil (AM) of Mexico, confirmed that its results were boosted by the depreciation of the Brazilian real versus the US dollar in the third quarter, adding that income for the period was ‘substantially influenced by the positive effects of exchange rate changes.’ The real fell 13% against the dollar compared with 3Q11. Net reported third-quarter revenue of BRL2.03 billion in July-September, up from BRL1.7 billion in the three months ended 30 September 2011. Earnings before interest, taxes, depreciation and amortisation (EBITDA) was BRL559 million, up from BRL486 million a year earlier.

Source: TeleGeography.