By: Gustavo Gindre
A ranking of the major communications groups in Brazil
By Gustavo Gindre
(1) Oi, the “super tele” that the Lula government helped create when it altered the regulations and allowed Telemar to buy Brasil Telecom, is carrying a debt 50% greater than the sum of debt carried by all its competitors combined (Telefonica, Embratel, TIM, Claro, NET, GVT and Algar).
It is hard to imagine how Oi will cope with a debt this large, given the enormous demands for investments by companies in the telecom sector and the furious appetite for dividends of its controllers (which led to the firing of ex-CEO Francisco Valim).
(2) The net income of Globo (without including the magazines and radio stations of the group) is more than six times the net income of Abril S.A., the second largest media group in Brazil. If we were to add together the net income of SBT, OESP and RBS, the sum would not surpass one-third of Globo’s net income.
(3) The same applies to Globo’s net earnings. If we add together the earnings of Abril, SBT, OESP and RBS, Globo’s earnings Globo are nearly 11 times greater.
(4) The Marinho family’s newspapers (Infoglobo) alone constitute the third largest media group in Brazil, after Globo and Abril.
(5) Globo’s onerous debt is less than the net proft achieved in 2012.
(6) The onerous debt of Abril S/A, on the other hand, is more than ten times greater than its net assets. This helps to explain the dimensions of the crisis at Abril and why the Civita clan is beginning to bet more on education than on media.
(7) Though he is still the richest man in the world, Carlos Slim still finds it difficult to obtain significant profits from his Brazilian companies (Embratel, Claro e NET). Claro in particular has proven to be Slim’s Achilles heel after once more closing out the year with a net loss.
(8) The major global media conglomerates (Warner, Disney, Viacom, and so on) are not included this ranking because their Brazilian companies (film distributors and pay TV programmers) are mere cash desks for the remittance of the profits obtained in Brazil to their foreign parent companies.
(9) The results from 2012 should be enough to convince the doubters. Globo is the only media group funded by Brazilian capital capable of surviving in the near future. All the others are tiny in comparison with foreign competitors and will be swallowed up or content themselves with occupying specific niches. The lack of public policy has generated a perilous situation for the future of our democracy.
Filed under: Brazil