In the third quarter, Brazilian telecom operator GVT Holding SA (GVTT3.BR), owned by French entertainment and telecom group Vivendi, saw net revenues rise 38.4% to U.S. $502 million (R$ 893.5 million) and the number of lines in service in the customer base increase 50.1% to 5.77 million as a result of territorial expansion, reaching three new cities as part of a plan to expand its services for eight new municipalities in the first nine months of the year.
Results were also boosted by a 51.1% increase in services revenues, which include broadband, VoIP and data services, while fixed-telephony services increased 31.4%. GVT’s net profit jumped to U.S. $160.89 million (R$ 286.07 million) from U.S. $81.14 million (R$ 144.27 million) in the same period last year.
The investments in the quarter totaled U.S. $ 261.9 million (R$ 465.9 million). For the year, GVT has invested U.S. $674.84 million (R$ 1.2 billion), an increase of 51.2% compared the same period in 2010. During the Futurecom event earlier this year, GVT said that it plans to invest U.S. $5.85 billion in Brazil through 2016.
Last September, GVT announced investments of U.S. $380 million (R$ 650 million) through the end of 2012 to launch pay TV in the country. The move is an important departure for GVT, which until now was focused on providing fixed-telephony and broadband. GVT expects that within five years revenues from TV may contribute more to the carrier’s business than telephony or Internet broadband.
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