Expansion Costs Drive 93% Profit Drop for Brisanet in Q4 2024 Despite Higher Revenue
Brazilian telecom operator Brisanet reported a dramatic 93% profit decline in the fourth quarter of 2024. Net profit fell to R$4.5 million ($789,000) despite revenue growing 18% to R$382.2 million ($67 million).
The sharp profit decrease stemmed from rising operational costs tied to aggressive network expansion. Service costs jumped 20.8% year-over-year to R$215.8 million ($37.9 million). Operating expenses surged even more dramatically, increasing 40% to R$112.6 million ($19.8 million).
Financial results worsened significantly, turning negative R$45 million ($7.9 million). This represented more than twice the financial losses recorded in Q4 2023. The company attributed these cost increases to ongoing investments in mobile infrastructure.
EBITDA reached R$167 million ($29.3 million), growing 7.8% from the previous year. The EBITDA margin contracted from 48% to 44%. This margin pressure reflects the company’s initial stage of mobile operations investment cycle.
In addition, Brisanet’s net debt climbed to R$1.36 billion ($239 million) by December 2024, up from R$1.03 billion ($181 million) in September. This pushed the company’s debt-to-EBITDA ratio from 1.75 to 2.25 times.
Brisanet Reports 2024 Profit Decline
For the full year 2024, Brisanet posted a profit of R$60.8 million ($10.7 million), down 65% from 2023. Annual revenue grew 16% to R$1.43 billion ($251 million). The company explained the annual profit decline resulted from tax credit benefits recorded in 2023 creating a challenging comparison.
Operationally, Brisanet added 48,600 broadband customers in Q4, reaching 1.45 million total subscribers. Mobile customers increased by 115,000, bringing the total to 337,900 by year-end.
The company successfully met its 4G/5G coverage targets for 2024. Its network now reaches 237 municipalities and covers 10.2 million people. Management cited this achievement as evidence of efficient implementation strategies.
Brisanet announced it will discontinue publishing operational projections for 2025. This decision aligns with what the company describes as its current “strategic transformation” and focus on long-term value creation.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error
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