US Markets

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

Credit: REUTERS/PAULO WHITAKER

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.

SAO PAULO, Aug 14 (Reuters) - Brazilian telecom carrier Oi SA OIBR4.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.

Oi, which filed for bankruptcy protection in June 2016 to restructure approximately 65 billion reais of debt, reported net revenue of 5.091 billion reais, down 8.2% from a year before.

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)

(Reporting by Gabriela Mello; Editing by Jan Harvey)

((Gabriela.Mello@thomsonreuters.com; +55 11 5644 7553; Reuters Messaging: gabriela.mello.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

    Reuters

    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

    Learn More