Oi posts €61M loss in Q2

 In News, Telecoms

Telecoms company Oi posted a loss of €61 million for Q2 of 2022, a result which could have been worse had it not been sold to operators Claro, TIM and Vivo.

The operator Oi posted a total loss of €321 million Brazilian reais (€61.2 million) in Q2. That result compared to a profit of €1.139Bn reais in the like-for-like quarter.
The sale of the operation to operators Claro, TIM and Vivo, completed in Q2 helped offset losses posted between April and June.
However, its overall profits were €1.461Bn reais (around €279.7 million) in H1, 2022. This compared to a loss of €1.899Bn reais (around €363.5 million) like-for-like in the same period in 2021.
The Portuguese company Pharol has a 4.66% share in Oi.
Oi, which had been called Telemar, is one of the largest telecom companies in Brazil and South America. It also operates in Mozambique under the brand Oi Futuro.
According to Pharol in a note sent to the Portuguese stock market regulator CMVM, the results are mainly down to “gains made from the sales of the mobility business and V.tal.”
According to the communiqué, Oi posted strong losses because of exchange rates, interest and tax charges.
The companies total revenues stood at €7.1Bn reais (€1.3Bn) in H1, a fall of 18.7% like-for-like on 2021 (8.8Bn reais or €1.7Bn).
In 2010 in what was called the “largest financial operation in the history of Portugal” by the then President of Portugal Telecom, Henrique Granadeiro, PT sold its position in the Brazilian company Vivo and PT’s operational assets were bought by Oi.
In 2013 Oi and the then Portugal Telecom (now Altice Portugal) announced the union of their businesses. The plan for the merger was to create a giant company CorpCo with 100 million customers, headquartered in Brazil.
In 2014 Altice Portugal (which bought Portugal Telecom) reached an agreement with Oi about the definite terms of the main contracts to be celebrated following a Memorandum of Understanding. The contract was signed during Portugal Telecom’s General Shareholder’s Meeting that year.
Oi would go on to sell its Portuguese operational assets in 2015 to Altice.
By 2016 the PT-Oi deal was under investigation by the Portuguese authorities and offices were searched under a warrant issued by the Portuguese procurator. Zeinal Bava and Henrique Granadeiro headed PT at the time Vivo was sold.