GVT plans investing US$ 1.1 billion
Valor Econômico
GVT plans making investments of R$ 1.8 billion (US$ 1.1 billion) this year to implement the geographical expansion of its broadband network and join in the pay-TV market. The amount, 37% higher than the disbursement made in 2010, reveals the operator is financially arming itself to star in the two more disputed capitals of the country: São Paulo and Rio de Janeiro. The arrival to those markets will be the most sensitive point of a growth strategy that began being outlined some years ago and sped up in 2010, when the phone company took its services to the interior of São Paulo and increased its presence in the Northeast.
GVT, present in nearly 100 cities, defined covering another 80 cities in the next five years as its goal. The goal is to double its participation in the period, in the broadband market, bringing its share from 10% to 20% of the total of such accesses in the country. "We would have greater potential for growth and invest more, if there wasn't' a manpower bottleneck", said the President of GVT, Amos Genish, to Valor. The operator has 600 jobs vacant for many functions, but there is lack of professionals. The company studies opening processes of selection in other countries such as Portugal and Argentina - to recruit employees.
The last three months of 2010 generated half of annual net income: the gains achieved from September to December totaled R$ 162.3 million (US$ 92.2 million). Besides the operating result, the number reflects the fall in the financial expenditure of the company, which traded debts in foreign currency for contracts in Real. The income increased 46.1% and stayed at R$ 693.7 million (US$ 394.1 million). The President of GVT attributed the result to a combination of factors. On one hand, the growth of the coverage carried out by the company. In 2010, the operator proceeded to operate in 13 new municipalities. On the other, is the launch of products. Such a thing should be repeated this year. In the second half, GVT will launch a 35-Mbps package, "at competitive prices", says Genish.
On another front, GVT will star in the pay-TV market, with the transmission of videos through the internet (IPTV). It may benefit from contents produced by the companies that have interest in Vivendi, such as Universal and Canal Plus. The company is hoping the change in the legislation allows it to offer all channels, not just video on demand.