August 15, 2019 / 11:08 AM / 10 months ago

Brazil's Oi posts steepening loss in Q2, missing estimates

SAO PAULO, Aug 14 (Reuters) - Brazilian telecom carrier Oi SA reported a steepening second-quarter net loss on Wednesday, confounding expectations for a narrower shortfall, as debt servicing costs rose and the real currency weakened.

In a securities filing, the company posted a quarterly loss of 1.559 billion reais ($384.81 million), compared to a loss of 1.258 billion reais in the same period of the previous year.

Analysts on average expected a net loss of 437 million reais, according to Refinitiv data.

Oi, which filed for bankruptcy protection in June 2016 to restructure approximately 65 billion reais of debt, reported net revenue of 5.091 billion reais, down 8.2% from a year before.

Earnings before interest, tax, depreciation and amortization (EBITDA), a gauge of operating performance, fell by 22% to 1.218 billion reais, missing a consensus estimate of 1.432 billion reais compiled by Refinitiv.

Oi's net debt at the end of June hit 12.6 billion reais, 25.5% higher than a year before.

Brazil's largest fixed-line carrier also said its capital expenditure climbed 50.7% in the second quarter to 2.06 billion reais.

Like its competitors in Brazil, Oi is focused in expanding its fiber-to-the-home (FTTH) broadband service and 4.5G coverage ahead of a hotly anticipated 5G spectrum auction next year. ($1 = 4.0513 reais) (Reporting by Gabriela Mello; Editing by Jan Harvey)

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