Currency devaluation blamed for poor perf
RIO DE JANEIRO — Net Servicos, Brazil’s leading cabler, has reported massive net losses of $701 million in 2002, double 2001’s red ink of $349 million.
Operator, which began renegotiating its debt payment in December, attributed the poor performance to last year’s local currency devaluation against the dollar and an economic slowdown.
Net Servicos’ net revenue fell to $403.5 million in 2002, down 18.2%, from $493 million a year earlier, due to the devaluation. In local currency, the net revenue remained virtually stable.
The company’s debt, the bulk of it with short-term maturity, was $324 million at year-end 2002, down from $692.5 million a year earlier, as a result of the operator’s recapitalization.
Local media giant Organizacoes Globo controls Net Servicos. Other shareholders include Microsoft.