THE Hey released the financial statement for the 1st quarter of 2021. The operator posted a loss of R $ 3.5 billion, which represents a 44% reduction in the annual comparison. Net revenue also shrank, and the company started to consider the mobility and pay TV business as discontinued operations.
Oi’s financial results – 1st quarter of 2021
See the main financial highlights of the first quarter and the comparison with the same period of the previous year:
|Indicator||1st quarter of 2021||1st quarter of 2020||Difference|
|Total net revenue||R $ 4.45 billion||R $ 4.74 billion||-6.2%|
|Net loss||R $ 3.5 billion||R $ 6.28 billion||-44.2%|
|Net debt||R $ 25.17 billion||R $ 18.13 billion||+ 15.5%|
|Capex (investments)||R $ 1.86 billion||R $ 1.79 billion||+ 7.3%|
|Revenue Generating Units (accesses)||53.8 million||52.65 million||+ 2.2%|
Oi justifies that the restrictive measures of the COVID-19 pandemic had an impact on net revenue, and the decrease mainly observed in the corporate segment.
Oi sees upset with fiber optic growth
The residential segment had stable revenue compared to the previous year and reached the mark of R $ 1.3 billion. In the fiber optic service, the operator registered a growth of 189.1% in comparison with 2020, but the figure is still lower than fixed voice and broadband provided with copper technology.
Oi ended the period with 10.4 million revenue generating units (customers), down 3.3%. The negative result was due to the disconnections of copper, whose segment shrank 36.6% in the annual comparison.
Fiber optics are the company’s main focus, and the numbers are positive: Oi ended March with 163.1% growth in homes connected to Oi Fibra, and there was a 36.3% jump in satellite TV customers. subscription via IPTV. Tele surpassed the mark of 2.5 million customers with FTTH technology, including accesses from small and medium-sized companies.
The operator already sees an upward trend in residential finance with the growth of fiber optics. The expectation is that the number of customers will increase, mainly considering that Oi Fibra broadband arrived in São Paulo with competitive plans and should cover 2 million households (home passed) in the state until the end of 2022.
Fiber optic coverage ended March with availability for contracting in 10.5 million households. Oi expects to end the year 2021 with up to 15 million homes covered with Oi Fibra internet.
Oi Móvel is considered a discontinued service
The balance sheet for the 1st quarter brings an important milestone for Oi: the company started to consider the mobility business as a discontinued service. Oi Móvel was sold to Claro, TIM and Vivo in December 2020 for R $ 16.5 billion, but the deal has yet to be approved by Cade and Anatel.
The cell phone segment had net revenue of R $ 1.54 billion, a decrease of 6.4% in comparison with the previous year. It is important to highlight that this revenue is greater than the entire residential business, and Oi will lose this income after the conclusion of the sale of the mobile arm.
Even considering the legacy business, Oi celebrates that it tied with Claro in the net adds of postpaid customers, who pay more for cellular services in comparison with prepaid. The operator attributes the success to the new plan with unlimited 4G internet for R $ 99.90 per month.
Oi ended the 1st quarter of 2021 with 38.5 million mobile customers. Its mobile network is present in 3,611 municipalities, of which 1,042 cities have 4G technology, 1,657 have 3G and 3,499 have 2G signal.