Venezuelan incumbent telco Cantv saw net profits of 252bn bolívares (US$117mn) in the first quarter of 2007, up 36.9% compared to 1Q06 chiefly due to growth in mobile and broadband revenues, the company said in a statement.
Revenues for the quarter were up 28.1% to 1.85tn bolívares from 1.44tn bolívares in 1Q06.
Mobile revenues hit 921bn bolívares, up 40.7% on 1Q06, while broadband revenues rose 36.2% to 266bn. Cantv's mobile unit Movilnet end the quarter with 8.1mn subscribers, a 45.5% gain on end-1Q06.
The company ended the quarter with 529,000 broadband subscribers, up 53.8% on the same time last year.
The government is currently planning to acquire up to 100% of Cantv through a tender offer launched April 9.
The state is offering 4,560 bolívares per local share and US$14.85 for American Depositary Shares on the NYSE.
Once the tender offer ends, the government is scheduled to hold an extraordinary shareholders' meeting to elect the company's new board on June 4.
President Hugo Chávez announced plans to nationalize Cantv in January this year and in February agreed to buy the 28.5% stake held by controlling shareholder US telco Verizon (NYSE: VZ) for US$527mn."
Posted to the site on 26th April 2007
Posted to: www.cellular-news.com/story/23404.php