Wall Street Journal | February 24, 2011 | Rogerio Jelmayer
SAO PAULO (Dow Jones)–Brazil’s leading cellular operator, Vivo Participacoes (VIV, VIVO4.BR), on Thursday said its fourth-quarter net profit more than quadrupled due to improved operational performance and the reduction of its costs with depreciation.
Net profit rose to 864.2 million Brazilian reais ($516.5 million) from BRL203.3 million a year earlier.
“The consolidated net profit in the fourth quarter is four times higher (325.1%) in comparison with the fourth quarter of 2009 and 43.6% higher in relation to the third quarter, reflecting better operational performance, lower depreciation expenses and better financial result,” the company said.
Vivo reported net revenue of BRL4.86 billion in the period, up from BRL4.4 billion the year before.
The company’s costs with depreciation and amortization totaled BRL513.8 million, down from BRL831 million.
Vivo’s earnings before interest, taxes, depreciation and amortization, or Ebitda, rose to BRL1.67 billion from BRL1.38 billion. The Ebitda margin, a measure of profitability over net revenue, was 34.5% in the quarter, up from 31.4% in the year-earlier period.
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