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1Q18 Results

Focus on operational efficiency with cost reduction supports EBITDA and margin growth over 4Q17

The Company reduced costs, through operational efficiency, by R$ 318 million versus 1Q17 and R$ 426 million versus 4Q17.

  • Operational efficiency translates into sustainable cost reduction, reinforced by the continued evolution of quality indicators.

Oi recorded growth in EBITDA and EBITDA margin in the sequential comparison, in-line with the Judicial Reorganization Plan.

  • Routine EBITDA recorded R$ 1,6 billion in the quarter, a 20.5% increase over 4Q17. Routine EBITDA margin reached 27.9%, representing growth of 5.4 p.p. over 4Q17.

Focus on operation continues to promote increased efficiency and improved customer experience, reflecting advances in operational and quality indicators.

  • Initiatives such as infrastructure upgrade and network capacity expansion, preventive actions designed to increase productivity, improvement of customer service quality and digitalization of services and processes created synergies for the Company.
  • As a result, Oi recorded an improvement in customer satisfaction in 2017, with continuous reductions in ANATEL (-24.1% versus 1Q17), Small Claims Court- JEC (-23.4% versus 1Q17) and PROCON (-5.1% vs. 1Q17).

The intensification of the digital program with the launching of solutions that improve customer experience and enable efficiency gains, including the automation of processes (robotization and artificial intelligence) and increased digitalization of billing, sales and customer service.

Cash position was R$ 6.2 billion at the end of March 2018, reflecting the payment for the acceleration of investments in 4Q17 and payment of Income Tax.

Approval of the JR Plan, which will lead to a debt reduction of over R$ 36 billion, enabling the resumption of the investment cycle.

Oi registers accounting profit of R$ 30.5 billion, reflecting the recording of the restructuring of its debt approved in the Judicial Reorganization Plan. As a result, Net Equity returns to positive R$ 28.9 billion.

The Company is preparing for a new growth cycle that will occur with the acceleration of investments financed by the capital increase.

  • Incremental CAPEX plan financed by capital increase provides for investments of R$ 7 billion per year for the coming years, with strategies focused on access to fixed line and mobile networks, supporting the transformation, growth and sustainability of the business.

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(¹) This translation is still subject to the auditors review

(¹) This translation is still subject to the auditors review

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