A Hi released its financial results for the 3rd quarter of 2021 and had a loss of R$4.83 billion, a drop in revenue and an increase in net debt. Even with the numbers down, the company sees positive perspectives for the future due to the growth of Oi Fibra broadband contracts and the sale of the mobile telephony arm.
Oi’s finances are not good: in addition to reducing net income, the loss increased significantly compared to the same period in 2020. The company continues in the judicial recovery process.
The tele justifies that the increase in debts is related to the devaluation of the Real, as 53.5% of debts are in foreign currency. In addition, debentures (bonds for investors) were issued by Oi Móvel and InfraCo during the period.
In September, Oi dismissed 850 employees and closed 400 job vacancies that were still open. In the presentation to investors, the company states that the reduction in the workforce is “strengthening Nova Oi”.
Hi – Financial results for the 3rd quarter of 2021
Check below the main financial indicators of Oi Móvel and the comparison with the same period of the previous year:
|Indicator||3rd quarter of 2021||2nd quarter of 2020||Difference|
|total net revenue||BRL 4.52 billion||BRL 4.7 billion||-3,9%|
|Net profit/loss||-BRL 4.83 billion||-BRL 2.32 billion||+86,5%|
|Net debt||BRL 29.89 billion||BRL 21.24 billion||+87,9%|
|Capex (investments)||BRL 1.81 billion||BRL 2.0 billion||-9,6%|
|Revenue Generating Units (accesses)||55.4 million||52.15 million||+6,3%|
Oi Fibra has an 81.5% increase in its customer base
Oi invests heavily in the expansion of optical fiber and reaped positive results. The operator reached 2.9 million residential broadband contracts with FTTH technology, representing an annual growth of 81.7%.
The service provided with metallic cables is still very relevant and has 4.17 million customers, of which 2.82 million are fixed telephone lines and 1.35 million still have broadband with xDSL technology.
Oi’s total net revenue from residential services was R$1.33 billion, up 2.4% year-on-year. Fiber already accounts for most of the revenue with BRL 751 million, while copper persists with BRL 583 million – the biggest share is generated by fixed telephone lines, which represent BRL 393 million in the company’s balance sheet.
Anyway, the fiber goes really well, thanks. V.tal’s network, a neutral company that allows Oi Fibra to provide services, has the service available for contracting in 13.5 million homes (home passed) of 195 Brazilian municipalities. The network occupancy rate (proportion of homes able to sign versus established contracts) was 23.5%.
On average, Oi Fibra customers spend R$89 per month. About 10.5% of all the company’s residential accesses had plans with speeds above 400 Mb/s, which are usually more expensive than the traditional 200 Mb/s package for R$99.99 monthly in automatic debit.
In the long term, Oi expects V.tal’s optical fiber to reach 32 million homes in 2,300 cities by 2024, with an occupancy rate by Oi Fibra of 25% of the network.
Oi Móvel had a drop in revenue but it grew in lines
You probably already know that Oi Móvel was sold to Claro, TIM and Vivo in 2020, and since last quarter the company’s cell phone arm was classified as “discontinued operation”. As such, there isn’t much justification for sustaining efforts on a service that won’t bring in long-term revenue.
Oi had an annual drop of 5.2% in net revenue from personal mobility services. However, tele had a 12% increase in mobile lines and grew 32.2% in postpaid, which has recurring charges and a higher monthly price than prepaid.
One of the biggest “defects” of Oi Móvel is the quality of the network. The company is present in 3,611 municipalities, but has 4G in just 1,043 cities and 3G in 1,670 locations – the other regions are served only with 2G, which does not allow for a good mobile internet access experience.