Brazil: Vivo posts profit of 89 million reais in first quarter

2 May 2008

Sao Paulo, Brazil, 2 May – Brazilian mobile phone operator, Vivo, owned by Spain’s Telefónica and Portugal Telecom, said Wednesday in Sao Paulo it had posted profit of 89.61 million reais in the first quarter as compared with a loss of 19.3 million reais in the first quarter of 2007.

This is the third consecutive profit posted by Brazil’s biggest mobile phone operator, which is owned 50/50 by the Portuguese nad Spanish operators.

Profit in the first quarter was driven by a rise in revenues, due to an increase in the number of users, and “strict cost controls” said the company’s chairman, Roberto Lima.

Vivo’s revenues rose 16.9 percent to 3.3 billion reais.

Lima noted that Vivo ended March with 34.32 million users, a rise of 18.2 percent on the same month of 2007, and a market share of 27.3 percent.

Investments by what is the biggest operator in the Southern hemisphere, rose 9 percent to 256.6 million reais, in the period. (macauhub)