Oi EBITDA declines to R$1.3 billion in fourth quarter; revenue down

By Caroline Salls

Pittsburgh, April 13 – Oi SA reported R$1,299,000,000 in EBITDA for the fourth quarter of 2017 on R$5,828,000,000 in net revenue, according to a 6-K filed Friday with the Securities and Exchange Commission.

In comparison, Oi posted R$1,756,000,000 in EBITDA in the fourth quarter of 2016 on R$6,323,000,000 in total revenue.

Oi said the restructuring process in 2016 and 2017 enabled it to stabilize its operation.

During this time, the company said management’s priorities were quality improvement, digital transformation, cost control, cash management and debt restructuring with the approval of its judicial reorganization.

“Important results on these fronts have been preparing Oi for a new investment cycle,” the filing said.

Cost reduction resulting from increased operational efficiency came to R$1.5 billion in 2017, while routine EBITDA was 2.3% higher than the estimate in the judicial reorganization plan, Oi said.

The company said its cash position closed 2017 at R$7.0 billion, in line with the plan, which projects a cash position of R$6.19 billion at the end of 2018.

According to the filing, the approval of the plan by a substantial majority will allow Oi to reduce its debt by more than R$35 billion.

For full-year 2017, Oi recorded EBITDA of R$6,244,000,000 on R$23,790,000 in net revenue, compared to R$6,697,000,000 of EBITDA for 2016 on R$25,996,000,000.

Oi is a Rio de Janeiro-based telecommunications service provider. It filed for Chapter 15 bankruptcy on June 21, 2016 in the U.S. Bankruptcy Court for the Southern District of New York under case number 16-11791.

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