Diveo weighs in on UOL's revenues, costs

Friday, November 11, 2011

Brazilian internet service provider UOL's 51.6% surge in Q3 revenues was mainly driven by higher earnings with advertisement, by Latin American broadband and IT services provider Diveo and by overall organic growth of other operations, UOL finance director Eduardo Mascaro said during a conference call with investors.

Revenues reached 312mn reais (US$179mn) in the quarter, with a 74.7% year-on-year surge in advertising revenues, while subscription revenues were up 3.8%. Ebitda reached 79.6mn reais, jumping 59.3% compared to 3Q10.

But profits retreated 19.3% in the quarter to 31.7mn reais, which Mascaro attributed to an increase in operational expenditures.

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In fact, general and administrative expenditures totaled 90.6mn reais in the quarter, rocketing 102% from the same period in 2010. This was a direct result of consolidating Diveo's operations, the executive said.

Also, in 3Q11, services costs reached 97mn reais, a 29.8% year-on-year.