Brazil's Telemig Q3 Profit Up 8% at US$22mn

Brazilian mobile operator Telemig Celular Participacoes recorded net profits of 38.2mn reais (US$22mn) in the third quarter of 2007, an increase of 8.1% compared to 35.3mn reais in 3Q06, the company said in its earnings statement.

Telemig's revenues for the quarter grew 11.8% year-on-year to 343mn reais from 306mn reais. Data revenues totaled 21.2mn reais compared to 21.7mn reais a year ago and now represent 6% of total revenues.

Ebitda totaled 112mn reais, up 23.1% compared to 91.3mn reais in 3Q06, while the company's Ebitda margin grew to 34.8% from 32% a year before.

Telemig is the leading mobile operator in the state of Minas Gerais and is well-positioned to fend off competition from new operators with its ARPU at 79.7 reais in 3Q07, up 9.7% compared to 72.6 reais in the same period last year.

The operator ended the quarter with 3.61mn subscribers, after net addition of 70,037 customers during Q3. The figure represents 5.5% growth compared to the 3.42mn subscribers being served at the end of 3Q06.

Finance director Ricardo Antunes Agostini said during a conference call with investors that the postpaid segment experienced a slight growth in the quarter reverting negative results in the segment since 1Q06.

Capex during the quarter was 39.9mn reais, down 50.7% compared to 80.9mn reais in the same period 2006. Capex during 2007 has been directed mainly at expanding network coverage, the executive said.

Telemig will intensify its investment policy during the last quarter of 2007, Antunes Agostini added.

The company believes it ended the third quarter with a market share of 29.3%, a slight fall compared to 30.4% at end-2Q07.

Posted to the site on 9th November 2007