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Brasília, D.F., 71.215-000
Federative Republic of Brazil
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| Investor Relations | |
| 55 (61) 415-1140 | |
| ri@brasiltelecom.com.br | |
| Media Relations | |
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| ivette.almeida@annemcbride.com |
BRASIL TELECOM RELEASES ITS 3Q03 PREVIEW
Brasília, Brasil, October 14, 2003 - BRASIL TELECOM S.A. (NYSE: BTM; BOVESPA: BRTO3/BRTO4) releases its consolidated results preview for the third quarter of 2003 (3Q03), non-audited.
Operating Performance
Brasil Telecom kept the focus on optimizing the investments made in its network and, despite the economy slowdown observed throughout 2003, achieved a 91.9% utilization rate in the 3Q03, 0.5 p.p. above the registered in the 2Q03.
| Plant | 2Q03 | 3Q03 | D |
| Lines Installed | 10,65 | 10,67 | 0.2 |
| Lines in Service | 9,74 | 9,80 | 0.7 |
| Public Phones | 297 | 297 | - |
| Utilization | 91.4 | 91.9 | 0.5 |
| ADSL Accesses in Service | 195 | 238 | 22.4 |
In the 3Q03, local traffic increased by 4.7% in comparison to the previous quarter, while the domestic long distance and fixed-to-mobile traffics dropped 2.0% and 7.5%, respectively.
Productivity Ratio
Brasil Telecom S.A. ended the 3Q03 with 5,272 employees, as a consequence of 117 admissions and 246 dismissals in the period. Furthermore, considering the consolidation of iBest, 90 employees were added to the Company payroll. As a consequence, the productivity ratio reached 1,861 LIS/Employee, 1.5% higher than the 1,834 figure registered in the 2Q03.
Third Parties Contracts Adjustments
Brasil Telecom’ strategy is to concentrate the readjustments of subcontracted services contracts in the 3Q03, following the tariff readjustment for the telecommunication sector usually authorized in the period.
In the 3Q03, operating costs and expenses were affected by adjustments of bills and phone lists printing contracts, and additionally by the increase in advertisement expenses given the implementation of CSC 14 in the long distance calls originated in a cell phone.
CAPEX
In the 9M03, the consolidated CAPEX in fixed telephony totaled R$1,028.2 million, equivalent to 74.3% of the one budgeted for 2003. During the quarter, R$335.7 million were invested, against R$312.6 million in the previous quarter, excluding R$295.4 million related to iBest and Globenet acquisitions.
Indebtedness
The R$60 million drop of total debt combined with the R$164 million increase of cash position throughout 3Q03 allowed a 5.7% reduction of net consolidated debt in comparison to the registered in 2Q03. The accumulated average cost of debt is 13.8% or 76.2% of the Domestic Interbank Rate (CDI) in the 9M03, which is equivalent to 18.75% p.a.
On September 30, 2003, Brasil Telecom had hedge agreements with notional equivalents to 51.8% of the dollar-denominated debt, which totaled R$241.8 million, not included the hedge adjustment.
| Debt (R$ Million) | 6/30/2003 | 9/30/2003 | D |
| Short Term | 1,239.1 | 1,673.4 | 35.0% |
| In R$ | 1,156.2 | 1,581.9 | 36.8% |
| In US$ | 82.9 | 91.5 | 10.3% |
| Long Term | 3,618.1 | 3,124.7 | -13.6% |
| In R$ | 3,409.2 | 2,928.9 | -14.1% |
| In US$ | 208.9 | 195.8 | -6.3% |
| Total Debt | 4,857.2 | 4,798.1 | -1.2% |
| (-) Cash | 974.9 | 1,138.4 | 16.8% |
| Net Debt | 3,882.3 | 3,659.8 | -5.7% |
| (-) Inter Company with BRP | 1,523.6 | 1,379.6 | -9.5% |
| Net Debt Ex-Inter Company with BRP | 2,358.7 | 2,280.2 | -3.3% |
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BRASIL TELECOM S.A.
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| By: |
/S/
Carla Cico
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Name: Carla Cico
Title: President and Chief Executive Officer
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