Reuters | February 24, 2011 | Stuart Grudgings & Maureen Bavdek
* Profits surge on lower depreciation, customer increase
* Net sales up 10.1 percent, subscribers up 16.5 percent
* EBITDA rises 20.9 percent from year ago (Adds analysts’ expectations, investment plans)
RIO DE JANEIRO, Feb 24 (Reuters) – Profits at Vivo Participacoes (VIVO4.SA), Brazil’s largest wireless carrier, more than quadrupled in the fourth quarter, beating expectations as the company added subscribers and depreciation costs fell.
Vivo, controlled by Spain’s Telefonica (TEF.MC), said in a securities filing on Thursday its net profit for the quarter soared 325 percent to 864.2 million reais ($518 million) from 203 million reais in the last three months of 2009.
The result was well above the average estimate of 594 million reais given by six analysts asked by Reuters.
Net sales rose 10.1 percent to 4.86 billion reais as its subscriber base expanded 16.5 percent to 60.3 million, reflecting strong consumer demand in Brazil’s economy. The Sao Paulo-based company said it maintained its overall market share in 2010 at 29.7 percent.
Its post-paid services increased 29.1 percent in 2010, outstripping growth of 13.6 percent in its pre-paid services.
…..
