Brasil Telecom GSM Posts Net Loss in 2005 of US$281mn
Brasil Telecoms' mobile phone arm, Brasil Telecom GSM, posted a net loss in 2005 of 599mn reais (US$281mn), the company said in a statement.
Brasil Telecom GSM, which began operations in October 2004, also reported gross revenues of 989mn reais in 2005 and net revenue of 700mn reais.
As is endemic in Brazil's mobile sector, Brasil Telecoms GSM reported negative Ebitda of 599mn reais. "The mobile operator had the worst Ebitda in the sector, but this reflects its position as a late arrival in the market," said Carlos Constantini, a telecoms analyst at Deutsche Bank Equity Research.
Brasil Telecom GSM ended 2005 with 2.2 million subscribers, with 693,000 on the more lucrative postpaid plans rather than prepaid options.
Constantini expects the company to break even by the first half of 2007 when it should reach the 3.5 million user mark.
The mobile phone company's average revenue per user (ARPU) was 27.80 reais in 2005.
BNamericas.com"
Posted to the site on 25th February 2006