Telefonica Brasil has a 25% Higher Profit in the 3rd Quarter Despite the Drop in Revenue
Telecommunications operator had a net profit of R $ 1.2 billion between July and September this year.
An improvement in the financial result, combined with lower tax expenses, led Telefônica Brasil to increase its profit in the third quarter, even with a slight drop in revenue due to the economic effects of the Covid-19 pandemic.
The telecommunications operator said on Tuesday (27) that it had a net profit of R $ 1.2 billion between July and September, an increase of 25.5%.
The company’s net revenue shrank 2.3% year-on-year, to R $ 10.79 billion, pressured by the 6.6% decline in fixed telephony service, impacted by the drop in voice, pay TV and corporate data revenues . In the mobile segment, revenue was stable.
The owner of the Vivo brand was able to partially offset the effects of falling revenues with greater discipline in expenses, with operating costs decreasing 0.6%, to R $ 6.47 billion.
Even so, the operating result measured by Ebitda (earnings before interest, taxes, depreciation and amortization) for the quarter, of R $ 4.32 billion, was 4.8% lower than a year earlier, even though it was practically in line with the forecast of Refinitiv analysts, of R $ 4.35 billion. The Ebitda margin for the quarter fell 1.1 percentage points, to 40%.