Brazil's Net 2nd-qtr profit slides on rising costs
SAO PAULO, July 18 (Reuters) - Brazil's biggest cable services provider, Net Servicos de Comunicacao SA (NETC4.SA), said on Friday its second-quarter profit fell 10 percent, as operational costs offset a rising client base.
Net Servicos posted a net profit of 28 million reais ($17.62 million), down from 31 million reais in the same period of 2007.
Earnings before interest, taxes, depreciation and amortization -- an important measure of cash flow known as EBITDA -- rose to 232 million reais in the quarter from 196 million reais a year earlier.
Net revenues rose to 891 million reais from 701 million reais in the second quarter of 2007 as Net's client base rose 5 percent to 9.3 million customers for the three products it offers -- broad band, voice, and Pay TV.
Operational costs also jumped 26 percent to 419 million reais, as the company increased staff to meet costumer service demands.
The company is co-owned by Brazil's Organizacoes Globo, Latin America's largest media group, and Mexican telecommunications giant Telefonos de Mexico (TMX.N) (TELMEXL.MX). ($1=1.589 reais) (Reporting by Alberto Alerigi, writing by Raymond Colitt; editing by Carol Bishopric) (ray.colitt@reuters.com ; +5561 3426-7021; Reuters Messaging: ray.colitt.reuters.com@reuters.net))
