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Brazil's Oi posts steepening loss in Q2, missing estimates


Reuters


SAO PAULO, Aug 14 (Reuters) - Brazilian telecom carrier Oi SA reported a steepening second-quarter net loss on Wednesday, confounding expectations for a narrower shortfall, as debt servicing costs rose and the real currency weakened.

In a securities filing, the company posted a quarterly loss of 1.559 billion reais ($384.81 million), compared to a loss of 1.258 billion reais in the same period of the previous year.

Analysts on average expected a net loss of 437 million reais, according to Refinitiv data.

Earnings before interest, tax, depreciation and amortization (EBITDA), a gauge of operating performance, fell by 22% to 1.218 billion reais, missing a consensus estimate of 1.432 billion reais compiled by Refinitiv.

Oi's net debt at the end of June hit 12.6 billion reais, 25.5% higher than a year before.

Brazil's largest fixed-line carrier also said its capital expenditure climbed 50.7% in the second quarter to 2.06 billion reais.

Like its competitors in Brazil, Oi is focused in expanding its fiber-to-the-home (FTTH) broadband service and 4.5G coverage ahead of a hotly anticipated 5G spectrum auction next year.

($1 = 4.0513 reais)









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