America Movil (AM)-owned Brazilian internet service provider (ISP) Net Servicos has reported a 20.8% year-on-year increase in revenue for the three months ended 30 June 2014, to BRL2.864 billion (USD1.212 billion), driving net income up 347.4% to BRL187.77 million, the company said in a statement to the market. Earnings before interest, taxes, depreciation and amortisation (EBITDA) also climbed sharply to BRL840.8 million, up 37.2% y-o-y. The company attributed the positive financial results to strong growth in its subscriber base and the impact of efforts to better streamline its operational costs. Meanwhile, for the first half of the year, Net Servicos said revenue reached BRL5.566 billion, up 20.7% compared to the same period of 2013; first-half EBITDA was up 31.7% at BRL1.635 billion and net income was BRL244 million (+55%).
The cable services operator’s financial statement also highlighted a capital increase – approved on 29 May this year – representing an injection of BRL880 million through the issuance of approximately 31.7 million common and preferred shares, increasing the telco’s total capital to BRL6.492 billion. Finally, Net Servicos reported that between May and July this year, it entered into private Instruments Advance for Future Capital Increase (AFAC), amounting to BRL1.177 billion under the auspices of its parent group.