Brazil based mobile operator Oi has reported net revenues of BRL 8.842 billion in the third quarter of 2014, down by 4.5% compared to the previous year. Revenues from its operations in Brazil decreased 5.1 percent to BRL 6.738 billion, while revenues from the Portuguese operations dropped 4.5 percent to BRL 1.883 billion.

Oi experienced net loss of 232,000 fixed lines in the quarter for a total 11.128 million, down 8.0 percent year-on-year. Broadband customers total 5.241 million, an annual decrease of 1.8 percent. Just over 47 percent of residences with Oi services had broadband, up 3.8 percent points from a year ago, and the average speed for residential broadband increased by 15.7 percent annually to 4.3 Mbps.

Oi ended Q3 with 1.032 million pay-TV customers, up 13.6 percent from a year ago and 16.4 percent more than in Q2. Oi finished the quarter with 61 percent of the homes with more than one Oi product. Residential ARPU reached BRL 73.40, up 3.8 percent from Q3 2013.

Net revenues from mobile services totaled BRL 2.180 billion in the quarter, down 6.4 percent from a year earlier due mainly to the MTR cuts. Customer revenues reached BRL 1.646 billion, a drop of 2.0 percent. Data revenues accounted for just over 30 percent of customer revenue and increased 27 percent year-on-year to BRL 500 million. Handset sales amounted to BRL 202 million, double the year-earlier figure, as smartphones grew to 76 percent of total sales. The 3G/4G handset penetration reached 37 percent of the customer base versus 19 percent in Q3 2013.

The total mobile customer base grew by 358,000 in Q3 and 3.5 percent year-on-year to 48.976 million. Including business customers, Oi had 51.449 million mobile lines. Mobile ARPU reached BRL 17.4, down 15.0 percent on an annual basis. Excluding the termination rate cuts, ARPU was down 2.2 percent.