Embratel reports loss in Q3.(BRAZIL)(Embratel Participacoes S.A.)(Financial report)(Brief article)

Latin America Telecom, November, 2006

Brazil-based long-distance telecoms operator Embratel Participacoes has reported a net loss of $150.8 million in the quarter ending on September 30, 2006, compared to net profits of $25 million in the same period of 2005, and $61 million in Q2 of 2006. The company says the losses were incurred because of a $240 million provision made for the tax liabilities arising from its two operational units.

However, net revenues increased to $1 billion from $0.87 billion year-on-year, and $0.95 billion quarter-on-quarter. Embratel also registered a pre-tax operating loss of $18.6 million, compared to a profit of $220 million in the Q3 of 2005. EBITDA has reached $222 million.