THE Hi released the financial results for the third quarter of 2020. The operator had a net loss of R $ 2.63 billion, which represents a reduction of 54.1% compared to the same period in 2019. The company’s finances remain on alert: the company increased its net debt, suffered a reduction in revenue and lost customers, although it grew with fiber optic internet.
Oi’s financial results in the 3rd quarter of 2020
See the main highlights of the 3rd quarter of 2020 and the comparison with the same period of 2019:
|Indicator||3rd quarter of 2020||3rd quarter of 2019||Difference|
|Net loss||R $ 2.63 billion||R $ 5.74 billion||-54.1%|
|Total net revenue||R $ 4.7 billion||R $ 5 billion||-5.9%|
|Routine EBITDA (earnings before interest, taxes, depreciation and amortization)||R $ 1.46 billion||R $ 1.37 billion||+ 6.4%|
|Routine EBITDA margin||31.1%||27.5%||+3.6 p.p|
|Net debt||R $ 21.24 billion||R $ 14.71 billion||+ 44.4%|
|Capex (investments)||R $ 2.01 billion||R $ 2.06 billion||-2.6%|
|Revenue Generating Units (accesses)||52.12 million||55.19 million||-5.5%|
Oi Fibra grows, but copper continues to generate more revenue
Oi bets all its files on the fiber internet service, and this is visible in the balance sheet since it is the only service that grows in the residential segment. The operator ended the period with 1.6 million homes connected with FTTH technology, a jump of 336.5% compared to 2019. There are 7.9 million households able to contract the technology, with an occupancy rate of 22.2% .
However, the growth of fiber does not match the reductions in legacy fixed services: copper lost 35.4% of customers in the year, with a significant disconnection in the broadband internet service via xDSL, which had a 41.5% drop in accesses .
Fiber services represent 24% of the revenue from residential products, ahead of copper broadband (20%) and DTH TV (23%), but behind traditional fixed telephony, responsible for 33% of Oi Fixo’s finances.
ARPU (average revenue per user) for residential services grew 4.3%, reaching R $ 82.50.
5% of Oi Fibra customers use speed greater than 200 Mb / s
Oi also announced the participation of customers by speed: the company ended the quarter with 95% of fiber accesses with a speed of 200 Mb / s and only 5% at the highest speed at the time, 400 Mb / s. The company recently created the 500 Mb / s plan to replace 400 Mb / s, with the same monthly fee.
Oi Móvel lost revenue, but grows in postpaid
Oi Móvel had revenue drop of 3.2% in the year and a reduction of 2.7% in the customer base, but managed to increase the postpaid base by 3.7%. In total, there are 33.7 million lines, of which 23.8 million are prepaid and 9.9 million are prepaid.
In the period, Oi highlights the launch of the 5G network in Brasília, which covers 80% of the city with 300 towers. Mobile services ARPU was R $ 16.30, a reduction of 0.2% compared to the third quarter of 2019.
Oi wants to end judicial reorganization in October 2021
Putting the strategic plan into practice, Oi expects to end the judicial reorganization process in October 2021. To do this, the company needs to auction its assets: the company will sell the tower and data center unit in November, while the most important event expected for December, with the dispute for Oi Móvel.
Oi priced its mobile assets unit at R $ 15 billion, but has already received proposals of R $ 16.5 billion. Together, operators Claro, TIM and Vivo are confident that they will conclude the business and maintain their position of stalking horse, which allows you to cover offers from other bidders.
Another important move is the auction of the fiber unit InfraCo, which should take place in the first quarter of 2020 and will be extremely important for the creation of an extensive neutral network. Oi evaluated the business at R $ 20 billion and is willing to sell up to 51% of the isolated production unit, which will be responsible for more than 433 thousand kilometers of optical network throughout Brazil.