Oi's performance in the last five years
Oi is preparing itself to a new phase starting after the conclusion of the merger process with Portugal Telecom.
Capital increase is part of this process, that can pu the oprrator again in the growth path consolidating its positions in the Brazilian Telecom market.
Since 2008, when Oi incorporated Brasil Telecom, the operator is losing market share inside the main Telecom services in Brazil.
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| Oi's Market Share | 2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
| Fixed Telephones | 53.6% |
51.3% |
47.7% |
44.1% |
42.2% |
39.0% |
| Fixed Broadband | 38.2% |
37.0% |
31.6% |
29.6% |
28.5% |
26.4% |
| Mobilee Accesses | 19.9% |
20.8% |
19.4% |
18.8% |
18.8% |
18.5% |
| Pay TV | 1.0% |
3.3% |
4.1% |
2.8% |
4.7% |
4.6% |
| Total Accesses | 26.9% |
26.4% |
23.9% |
22.2% |
21.7% |
20.9% |
Market share loss was bigger in fixed telephony, in which the number of Oi's total accesses decreased, but also happened in mobile telephony and fixed broadband, segments in which Oi has had growth in number of accesses even though it was a smaller growth when compared with competitors.
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So, Oi didn't get growth in revenue, keeping it stable in the period.
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EBITDA margin also remained stable.
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Note: EBITDA margin registered in 2013 includes the revenue from Globenet sale. Oi's routine EBITDA margin in 2013 reached 26.7%.
However, net debt increased from 1.1 EBITDA in 2008 to 3.2 EBITDA in 2013.
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Bad debt drove to reduction in investments made by the carrier between 2009 and 2011, what contributed to market share loss.
Oi faces strong competition from GVT and Net in the main cities where it has concession to operate and needs to invest in its fixed broadband network in order to offer higher speeds. in the end of 2013, 63.6% of Oi's fixed broadband accesses (SCM) had speed inferior to 2 Mbps, while 99.6% of GVT's accesses and 72.1% of Net's had speed superior to 2 Mbps.
The same happens in 3G/4G. Oi operates inside a smaller naumber of cities when compared with Vivo, Claro and TIM.
Oi still carries the regulatory obligations that take resources to operator's investments and that implicate in the maintenance of unprofitable services like pay phones. Oi's month net revenue with pay phones dropped from R$ 43.7 in 2008 to R$ 4.00 in 2013.
Oi's investments resumed growth in 2012 and 2013. For 2014, Oi plana Capex of R$ 5 billion, being R$ 3.13 billion for fixed telephony, R$ 1.82 billion for mobile telephony and R$ 48 million for other services.
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