March 29, 2018 / 12:12 AM / 4 months ago

Brazil telecom Oi reports preliminary results, delays earnings

BRASILIA (Reuters) - Brazilian telecom company Oi SA (OIBR3.SA) reported preliminary 2017 earnings on Wednesday and said in a securities filing that it was delaying its final earnings release due to accounting complexities after its court-agreed restructuring.

A man talks on a payphone with the logo of Brazilian telecoms company Oi SA outside the company's office in Rio de Janeiro, Brazil December 22, 2017. REUTERS/Ricardo Moraes

Oi, Brazil’s largest fixed-line carrier, reported preliminary 2017 earnings before interest, taxes, depreciation and amortization (EBITDA) of 6.2 billion reais ($1.87 billion), compared with 6.3 billion reais in 2016.

The company said it ended 2017 with a preliminary cash position of 7 billion reais versus 7.8 billion reais the year prior.

Oi plans to report earnings on April 12, rather than March 28 as originally planned.

The company filed for bankruptcy in June 2016, triggering an 18-month fight between and among shareholders, bondholders, regulators and state banks. In December, creditors approved a plan giving them much of Oi’s equity, and a Brazilian judge approved it in January, despite objections of some shareholders.

The restructuring resulted in 21 billion reais in negative adjustments to the company’s net equity in 2017, although that is not expected to affect its cash position or “routine” EBITDA for 2016 or 2017, Oi said in its statement on Wednesday.

Those adjustments will give Oi negative net equity as of December 2017, although the company expects to return to positive territory for 2018.

($1 = 3.3206 reais)

Reporting by Jake Spring; Editing by Sandra Maler and Leslie Adler

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