Brasil Telecom Announces Gross Revenue of R$3.9 Billion and EBITDA of R$952.0 Million in 1Q07

BRASILIA, Brazil, April 25  /PRNewswire-FirstCall/ -- Brasil Telecom Participacoes S.A.'s (BOVESPA: BRTP3/BRTP4; NYSE: BRP) EBITDA amounted to R$952.0 million in 1Q07, 0.5% and 15.4% higher than 4Q06 and 1Q06, respectively. Consolidated EBITDA margin in 1Q07 reached 35.4%. Consolidated net revenue amounted to R$2,690.9 million in 1Q07, a 8.6% increase compared to 1Q06, and net income totaled R$169.9 million in 1Q07.

In only 30 months of operations, EBITDA for mobile telephony was positive and reached R$4.4 million in 1Q07, corresponding to an EBITDA margin of 1.1% and reaching the goal set by the Company.

During 1Q07, Brasil Telecom added 65.8 thousand ADSL accesses to its plant, amounting to 1,383.5 thousand accesses, an increase of 5.0% and 27.6% compared to 4Q06 and 1Q06, respectively. By the end of 1Q07, ADSL accesses represented 16.7% of Brasil Telecom's lines in service, compared to 15.7% in 4Q06 and 11.4% in 1Q06. The Company also registered growth in data transmission services for the corporate market.

Internet Group, Brasil Telecom's Internet division, reached 1,160 thousand broadband clients in 1Q07, representing an 8.1% increase compared to 1,073 thousand clients in the previous quarter and 46.2% compared to the 793 thousand clients in the same quarter of the previous year.

In 1Q07, Brasil Telecom's gross revenue from data communications totaled R$660.1 million, a 1.6% increase compared to the previous quarter and 22.6% compared to 1Q06. ADSL revenues amounted to R$296.0 million, representing 44.8% of total data communications revenues.

BrT Mobile reached 3,638.1 thousand mobile accesses in 1Q07, corresponding to net additions of 261.3 thousand accesses in the quarter. BrT Mobile's market share in Region II reached 12.9% by the end of 1Q07. Consolidated gross revenue from mobile telephony totaled R$412.5 million in 1Q07, an increase of 81.3% compared to 1Q06.

Operating costs and expenses in 1Q07 totaled R$2,389.0 million, a 4.9% reduction compared to 4Q06. The ratio of operating costs and expenses (excluding depreciation and amortization) and gross revenue was 44.6%, remaining stable compared to the previous quarter.

In 1Q07, Brasil Telecom's investments amounted to R$152.8 million. Compared to 4Q06, total investments decreased significantly by 68.0%, mainly due to the mobile telephony investments, which decreased 96.0% compared to the previous quarter. Net debt in 1Q07 amounted to R$1,143.8 million, 12.8% less than in December 2006.

  Brasil Telecom Contacts:
  Investor Relations
  (55 61) 3415-1140
  

  Media Relations
  (55 61) 3415-1378
  



The full version of the 1Q07 release is available on Brasil Telecom's IR website: http://www.brasiltelecom.com.br/ri 

DATASOURCE: Brasil Telecom S.A.



CONTACT:  Investors, +011-55-61-3415-1140, ;

Media, +011-55-61-3415-1378,  



Web site:  http://www.brasiltelecom.com.br/ 

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