Boston, MA 05\/29\/2014 (wallstreetpr) \u2013 Oi SA (ADR) (NYSE:OIBR)<\/b> continued to make progress in its performance during first quarter 2014 through cost control measures, monetization of assets and synergies.<\/p>\n
The Revenue Generating Units (RGUs) remained stable at 74.6 million during 1Q2014 as a result of increasing focus on profitability and sales quality. The RGUs includes 17.7 million residential, 48.1 million Personal Mobility and 8.1 million Corporate\/SMEs.<\/p>\n
Operational Highlights<\/b><\/p>\n
Net revenues during the quarter were down by 2.3% to R$6.9 billion versus R$7.0 billion in 1Q2013, primarily due to decline in mobile termination rates across Personal Mobility and Corporate\/SMEs segments.<\/p>\n
Personal mobility represented 31.5% of net revenues in 1Q2014 and decreased due to lower network usage. The decline was partially offset by stable growth in residential (37.1% of net revenues) and Corporate\/SMEs (30.4% of net revenue).<\/p>\n
However, the gain from the sale of mobile towers and lower operating expenses (down by 4.8%) increased the operating (EBITDA) margin to 43% versus 30.5% a year ego. Excluding the one-time gain, the Company\u2019s adjusted (routine) EBITDA increased by 6% to R$1.7 billion compared to prior year period as a result of business transformation and gain in efficiency. So, the routine EBITDA margin increased to 24.9%, up by 2 percentage points versus 1Q2013.<\/p>\n
But, higher financial costs and income tax reduced the year over year net earnings by 13% to R$227 million or R$0.139 per share.<\/p>\n
Higher routine EBITDA and controlled capital expenditures of R$1.2 billion (down by 29%) raised the routine operating cash flow to R$502 million.<\/p>\n
Financing Highlights<\/b><\/p>\n
As of March 31, 2014, Oi SA (ADR) (NYSE:OIBR) had cash balance of R$4.2 billion, so, the net debt available for the period R$30.3 billion, including long-term debt of R$30 billion.<\/p>\n
Conclusion<\/b><\/p>\n
Oi SA (ADR) (NYSE:OIBR) continues to work over business transformation across the operating segments. In addition, the synergies between Oi and PT will further improve the operational efficiency going forward.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 05\/29\/2014 (wallstreetpr) \u2013 Oi SA (ADR) (NYSE:OIBR) continued to make progress in its performance during first quarter 2014 through cost control measures, monetization […]<\/p>\n","protected":false},"author":15,"featured_media":18553,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[263],"tags":[2457,3456,2456],"stock_ticker":[],"class_list":["post-23922","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-nyseoibr","tag-oi-sa-adr","tag-oi-sa-adr-nyseoibr","entry"],"acf":[],"yoast_head":"\n