Profitability of Telecom operators in Brazil in 2013
Average EBITDA margin of Telecom operators in Brazil, which was kept in about 30% in the last years (more details), presented drop in 2013, staying in the same level of 2005.
EBITDA margin is the relation between EBITDA and net revenue. EBITDA is gotten from net revenue less costs and operational expenditures. It represents company's cash generation before the consideration of revenues/financial expenditures, taxes, income tax and social contribution. It doesn't consider depreciation, amortization and assets equity.
The fall happened in the main operators, except at Oi which was benefited with an extraordinary revenue from the sale of its operation in international submarine cable (Globenet).
 |
| % | 2009 |
2010 |
2011 |
2012 |
2013 |
| GVT | 38.6% |
41.4% |
41.6% |
43.1% |
41.4% |
| Telefônica/Vivo | 34.3% |
35.9% |
36.3% |
37.4% |
30.5% |
| Oi | 32.6% |
34.9% |
31.4% |
31.5% |
33.7% |
| TIM | 25.8% |
29.1% |
27.3% |
26.7% |
26.1% |
| América Movil BR | 27.2% |
29.3% |
25.5% |
24.1% |
23.7% |
This fall occurred also in the controllers of the main Brazilian operators.
 |
| % | 2009 |
2010 |
2011 |
2012 |
2013 |
| Telecom Itália | 41.3% |
41.9% |
41.6% |
40.9% |
40.8% |
| Telefônica | 39.8% |
42.4% |
31.6% |
34.0% |
33.4% |
| A Movil | 41.2% |
40.7% |
35.5% |
34.2% |
32.5% |
| Vivendi | 19.9% |
19.8% |
20.3% |
14.0% |
11.0% |
The drop in profitability can also be observed when we consider the relation between the net profit and net revenue registered by these companies, among them, only International Telefônica Group showed improvement in these indicators in 2013.
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This fall in Brazilian profitability can be associated to the process of transition in which these operators are going through with the drop of voice revenues and growth of broadband revenues. This transition requires heavy investments in the construction of a new infrastructure of high speed fixed and mobile.
In the countries where this transition is ahead, operators like AT&T and Verizon (in the U.S.) and SKT (in South Korea) showed improvement in EBITDA margin in 2013, after the drop in 2012 (except Verizon that after the fall in 2009 is being successful in increasing its profitability).
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