Oi SA announces preliminary FY2012 results in wake of CEO’s departure

Brazilian telecoms operator Oi SA has published its preliminary financial results for the year ended 31 December 2012, in what is being interpreted as a move to quell market concerns arising from the surprise departure of its chief executive Francisco Valim, who had been in the job since September 2011. Oi SA’s share price tumbled in the wake of the announcement, despite Oi’s chairman, Jose Carneiro da Cunha, being appointed as his temporary successor while the group searches for a new CEO. Oi SA reported unaudited consolidated net revenues of BRL27.5 billion (USD13.4 billion) for the full year, almost hitting its own target of turnover of BRL28.9 billion. Preliminary earnings before income, tax, depreciation and amortisation (EBITDA) stood at BRL8.7 billion, again close to the goal of BRL8.8 billion for the year, and net debt stood at BRL25 billion – slightly above the BRL24.9 billion forecast. Oi SA will publish its final results on 18 February.