Oi grows in postpaid but has a loss of R $ 1.5 billion in the quarter | Telecommunications

THE Hi released its financial statement for the second quarter of 2019, and the operator remains in the red: total net revenue for the period was R $ 5.09 billion, down 8.2% compared to the same period last year, while the net loss was R $ 1.55 billion. The postpaid customer base grew by more than 20%, but the company suffered a reduction in fixed broadband and pay TV.

Oi Fibra launches 400 Mb s plan in more

O EBITDA (earnings before interest, taxes, depreciation and amortization) routinely fell 22.1% in the year with the mark of R $ 1.2 billion in the quarter. THE net debt grew by 25.5%, closing the quarter at R $ 12.5 billion.

The Capex, which represents the value in investments, grew by 50.7%, reaching R $ 2.06 billion in the period. The operator concentrates most of the investment in its fiber optic network, to bring broadband, pay TV and fixed telephone via FTTH.

Postpaid grows, but mobile segment revenue falls

All operators are making efforts to convert the prepaid base into control and postpaid, and with Oi it is no different: the number of customers in the postpaid grew 21.3% in relation to the previous year, while the prepaid fell by 11.1%. However, even the positive numbers for postpaid did not take the company out of the red. Net revenue fell by 3.4%, reaching R $ 1.73 billion.

The migration from pre to postpaid has been driven mainly by the migration from the use of voice to data. Oi’s post base grew by 1.5 million customers in one year. The operator has been very aggressive with its plans: the most expensive costs R $ 99, includes 50 GB of internet and does not discount data from social networks and streaming video services.

The operator ended the quarter offering 4G coveragein 907 municipalities, covering 74% of the Brazilian urban population. The 4.5G reached 34 municipalities. Compared to the competition, Oi has the lowest coverage: data from the Teleco indicate that TIM and Vivo cover more than 3,000 cities with 4G, while Claro has a presence with technology in more than 2,600 municipalities.

O ARPU of mobile services showed a slight increase of 0.2%, reaching the mark of R $ 16.09.

Home services have higher revenue

Of the total consolidated net revenue, approximately R $ 1.8 billion refer to residential services. In the period, residential revenue fell 1.2%, and the number of customers (revenue generating units) decreased by 9.1%.

In total, there are 7.77 million fixed lines in service, down 9.1% compared to the previous year. The result is to be expected, since the consumer’s own habits have changed and fixed telephony is less and less necessary, being replaced by cellular telephony and data services.

THE fixed broadband it also fell: 4.67 million accesses, down 7.6%. However, the operator informs that the contracting of broadband by fixed customers reached 60.1%. THE Pay TV it also showed a slight decrease of 1.6%, with 1.56 million accesses.

To contain the falls, Oi is betting on two strategies. The first is to focus on convergent offers, such as combos with fixed telephone, broadband, TV and mobile. These offers bring greater profitability and loyalty to the customer base. The second is the massive investment in the expansion of the fiber optic network, which delivers services with greater speeds, stability and the ability to compete with regional operators in small cities.

O ARPU (average expenditure per user) of residential services was R $ 78.90 in the period, down 0.6% in the annual comparison.

Oi expands investments in optical fiber

The company admits that most of the broadband base is formed by accesses via copper, with xDSL technology. Regional players and other major operators are already working with technologies that deliver greater speed, leaving Oi’s service far from the competition.

THE fiber optic cover Oi reached 2.9 million houses on the roof (home passed) and expects to end 2019 with 4.6 million and 2021 with 16 million, as disclosed in the strategic plan. The operator serves 59 municipalities with FTTH and 291 thousand Oi Fibra service customers. In total, the occupancy rate is about 10%, with 290 thousand homes connected to the service.

With information: Hi.

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