Brasil Telecom Announces Gross Revenue of R$4.1 Billion and Net Income of R$205.6 Million In The 4Q07

BRASILIA, Brazil, Jan. 29  /PRNewswire-FirstCall/ -- Brasil Telecom Participacoes S.A. (BOVESPA: BRTP3/BRTP4; NYSE: BRP) registered recurring EBITDA of R$980.1 million in the 4Q07, 18.1% higher than the 4Q06. Brasil Telecom's consolidated quarterly EBITDA totaled R$ 902.3 million, accompanied by a consolidated EBITDA margin of 31.4%, versus R$ 947.1 million and 34.6%, respectively, in the 4Q06. Consolidated net revenue totaled R$2,876.1 million in the 4Q07, 4.9% up on the 4Q06, and Brasil Telecom recorded 4Q07 net income of R$ 205.6 million, equivalent to R$ 0.5673 per share.

Sustaining the positive results reached in every quarter in 2007, BrT Movel's EBITDA stood at R$ 10.3 million in the 4Q07, R$ 44.1 million up on the same period the year before. The EBITDA margin of the mobile operations came to 2.1%, 10.2 p.p. up on the 4Q06.

In the 4Q07, Brasil Telecom added 44,600 ADSL users to its network, totaling 1,567,800 users in service at the end of the year, up by 19% year-on-year. ADSL users represented 19.5% of Brasil Telecom's network in the 4Q07, versus 15.7% in the 4Q06.  Moving on with the expansion of the broadband network, Brasil Telecom reached 80% of the municipalities with ADSL coverage, the highest percentage among large operators.

Another important front of innovation is the pursuit of alternative solutions for broadband access in places difficult to serve through physical means. The Brasil Telecom group is thus testing Wi-Max technology, in pre-commercial phase, in the cities of Curitiba and Porto Alegre (Wi-Max -- Worldwide Interoperability for Microwave Access -- Wireless broadband access with international interoperability standard).

The Internet Group, responsible for Brasil Telecom's Internet services, recorded 1.4 million broadband clients nationwide at the end of 2007, up by 26.3% on the same period the previous year, maintaining its leadership in Region II.

Gross revenue from data communication amounted to R$735.3 million in the 4Q07, 18.1% higher than in the 4Q06. This was chiefly due to the growth of 19% in the ADSL client base.

BrT Movel reached 4,262,700 mobile users at the end of the 4Q07, with 238,900 net additions in this quarter. In the 4Q07, BrT Movel's client base grew by 26.2% year-on-year while the Brazilian market increased by 21.1%. Its market share in Region II came to 13.2%, 1.1 p.p. higher than in the previous year.

The mobile telephony's consolidated gross revenue totaled R$542.9 million in the 4Q07, R$468.1 million of which from services and R$74.8 million from the sales of handsets and accessories.

Operating costs and expenses totaled R$2,559.8 million, 1.9% higher than the R$2.511.7 million recorded in the 4Q06. The ratio between losses with accounts receivable and gross revenue was 2%, totaling R$83.8 million, 0.4 p.p. below the figure recorded in the 4Q06. The reduction in losses was due to the improved phone collection performance.

In the 4Q07, Brasil Telecom's investments totaled R$608.8 million while net debt stood at R$489.9 million, 62.7% less than in December 2006.

The full version of the 3Q07 earnings release is available on Brasil Telecom's IR website: http://www.brasiltelecom.com.br/ir 

DATASOURCE: Brasil Telecom Participacoes S.A.



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