Oi sets Ebitda guidance

Bnamericas Published: Tuesday, January 06, 2015

Brazilian telco Oi has projected Ebitda of 7bn-7.4bn reais (US$2.6bn-2.7bn) for 2015.

The company said it made the calculation based on Brazil's projected GDP growth rate of 0.55% and inflation rate of 6.5% for the current year.

Oi said that given its decision to sell operating assets in Portugal and Hungary, the company cannot provide guidance on the Ebitda for those assets.

Oi's Ebitda decreased 1.5% to 3mn reais in the third quarter.

The company attributed the poor performance mainly to lower network usage revenue, and reduced interconnection rates in mobile voice services (MTR), as well as the country's economic slowdown.

Oi is Brazil's largest landline carrier, the third largest pay TV provider and the fourth wireless player.

Oi has said that the sale of its Portuguese operations (PT Portugal), inherited from the company's merger with Portugal Telecom, to Luxembourg-based Altice for 7.4bn euros (US$9.2bn) will be used not only to reduce its high debt level, but also to finance consolidation in Brazil.

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