(Updates with shares in final paragraph).
July 14 (Bloomberg) -- Brazilian state-controlled telecommunications company Telecomunicacoes Brasileiras SA may be profitable from 2013, a year earlier than previously forecast, Chief Executive Officer Caio Bonilha said.
The company made “reasonable” economies by contracting equipment for the country’s broadband Internet plan and should break even in two years, Bonilha said in a July 11 interview in Brasilia. Former CEO Rogerio Santanna said Telebras, as the Brasilia-based company is known, would have profits by 2014.
The Brazilian government has allocated 350 million reais ($222 million) for investments in broadband infrastructure in the country’s Southeast and Northeast regions. The company requested 1 billion reais for the year. Bonilha, who took office in June, said he will ask for a further 250 million reais this year.
“We’re accelerating the process of implementing the network and depending on our ability to make the investment, we could get more resources,” he said. “It’s a commitment of the government as a whole.”
Telebras has signed contracts to hire infrastructure equipment and service at 269 million reais, Bonilha said.
The company fell 7 percent to 6.25 reais at the market close in Sao Paulo today.
--Editors: Robin Stringer, Helder Marinho
To contact the reporter on this story: Carla Simoes in Brasilia Newsroom at firstname.lastname@example.org
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