Morningstar Rating

Stock Research and Analysis

by Imari Love

Bulls Say

Oi's potential merger with Portugal Telecom could generate BRL 5.5 billion in synergies (broken up as 38% in operating expenditures, 22% in capital expenditures, and 40% financial).
Oi is starting to improve its margin base given improvements in retention management, efficiency gains in field force, and better billing utilization.
Oi has the largest fixed-line backbone in Brazil. It also launched a satellite TV service last year and has expanded its subscriber base at a very fast clip. Read more 

Bears Say

Oi has cut its dividend outlook for 2013-2014 by 66% given liquidity concerns and weak first-half earnings.
Nearly 70% of the firm's revenue comes from a wire-line business that is in a secular decline due to fixed-to-mobile substitution.
To facilitate the PT merger, the firm did a massive right issue that diluted Oi's shares without the benefit of lowering leverage. Read more 


In June 2013, Zenial Bava was named CEO--taking over for Jose Mauro Mettrau Carneiro da Cunha, who has assumed his former position as chairman of Oi's board. Bava resigned his position as a member of Oi's Board. Bava was appointed CEO in 2008 and was   Read more 


In Brazil, Oi now has nearly 18 million lines in service, making it the largest fixed-line provider in Brazil. Its wireless operation, Oi Movel, controls more than 50 million   Read more 

First Name
Last Name
Email Address
Zip Code
Create Password
Verify Password
(6-15 characters; case sensitive)

4 REITs That Can Weather Through Rising Rates 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Premium.