Oi has a loss of R$ 321 million in the 2nd quarter with currency effect

Oi announced on Thursday night (10) a net loss of R$ 321 million in the second quarter, after a billionaire profit a year earlier, as the exchange variation negatively impacted the company’s numbers.

Oi’s total net revenue was R$2.8 billion from April to June, down 36.9%, as it includes assets sold by the telecommunications company within the scope of its judicial recovery, such as mobile telephony.

On a comparable basis — revenue from continuing operations in Brazil — there was an increase of 1%.

In the fiber optic segment, a focus of the company with the ongoing reorganization, net revenue grew 38.7% year-on-year to R$960 million, while the number of homes connected with the technology was almost R$3, 7 million, an increase of 29.5% compared to a year earlier and 4.1% in the quarterly comparison.

Oi said that there is still a deceleration in net adds since the last months of 2021, due to the effects of macroeconomic conditions and their impacts on customer cancellations, but that it already sees “an improvement in net adds in the months of May and June”, according to Oi. results report.

Operating income measured by routine earnings before taxes, interest, depreciation and amortization (Ebitda) fell 69.8% in the second quarter, to R$388 million.

The routine Ebitda margin was 14%, against 29.3% in the same period in 2021.

The consolidated net financial result was negative by R$3.1 billion, especially due to the effect of the exchange rate variation, after being positive by R$1.2 billion in the previous year.

Oi’s routine operating costs and expenses fell 23.3% over the same period last year, to R$2.4 billion.

Net debt ended the quarter at R$16.1 billion, down 48.7% from the first three months of 2022.