Telecom service provider Oi today said its Capex (capital spending) during Q3 2014 decreased 14 percent to $651 million or R$ 1,670 million.
The Capex of Oi in Brazil dipped 7.1 percent to R$1,431 million, while its Capex nosedived 42 percent to R$192 million in Portugal.
In Brazil, Oi has allocated R$ 1.139 million or 79.6 percent of total Capex to network, targeted at expansion projects, improvement of TV infrastructure, improvement of quality and coverage expansion of 3G and 4G, IT and communication services infrastructure to FIFA World Cup, and upgrade of quality and speed of broadband access.
I local currency, Capex of Oi in Portugal decreased 40.9 percent to 64 million euros or 10.5 percent of revenues, mainly due to lower investments in IT / IS projects, following the IP transformation and consolidation of all IT applications, lower infrastructure and technology related Capex in both FTTH and 4G-LTE networks and lower customer related Capex.
Oi continues to invest in its network with a granular approach and seeking to improve the capital allocation efficiency.
Oi said its Q3 2014 revenue fell 4.5 percent to R$8,842 million or $3,345 million, while net income plummeted 96 percent to R$8 million.
The telecom operator generated R$6,738 million from Brazil, while Portugal contributed R$1,833 million. Decline in revenue both telecom market was almost equal.
In Brazil, Oi 2G coverage reached 3,377 municipalities, an annual increase of 51 new municipalities, covering 93 percent of the country’s urban population.
In 3G, the company expanded its coverage in 104 new municipalities with 11.8 percent, totaling 983 municipalities or 77 percent of the Brazilian urban population.
The company also offers 4G LTE services in 45 municipalities, which represents 36 percent of the urban population.