Amazonia Widens Loss in 2006, Telemig Profits Decline"

Brazilian mobile carrier Tele Norte Celular Participações, known as Amazônia Celular, on Tuesday said that its consolidated net loss rose 80% in 2006 to 76.1mn reais (US$36.9mn).

Net revenue rose 1% to 436mn reais, whereas Ebitda dropped 70.5% to 36.7mn reais. Ebitda margins fell to 9.5% from 32%, the company said in a statement.

Gross earnings declined 22% last year to 137mn reais. Operating losses surged to 135mn reais in 2006 from 14.4mn reais the previous year.

Tele Norte Celular operates in the northern states of Roraima, Amazonas, Amapá and Pará, as well as in the northeastern state of Maranhão.

Tele Norte's sister company Telemig Celular Participações, the leading mobile phone service provider in Brazil's third wealthiest state of Minas Gerais, reported consolidated net earnings of 113mn reais for 2006, 35% lower than in the previous year.

Net revenues totaled 1.19bn reais, up 4% from 2005, whereas Ebitda slipped 19% to 348mn reais. The company's Ebitda margin shrank to 32.1% from 40.6%.

Gross profits declined 1.4% last year to 585.69mn reais, while operating profits fell 36% to 192mn reais.

Telemig announced this week they had contracted Swedish telecoms equipment provider Ericsson to provide a high-speed packet access commercial network.

Telemig Celular and Amazônia Celular confirmed in January their selection of US investment bank Merrill Lynch to coordinate the sale of the telcos this year. The telcos are controlled by US bank Citigroup and local pension funds."

Posted to the site on 28th March 2007