Analysts say Oi (OIBR3) should bring surprises in the 2Q22 balance

Analysts say Oi (OIBR3) should bring surprises in the 2Q22 balance

Analysts say Oi (OIBR3) should bring surprises in the 2Q22 balance
Hello (OIBR3)

The Hey (OIBR3) will release its balance sheet for the second quarter of 2022 (2Q22) next Thursday (11), after the market closes. Check out some predictions about the company’s results.

Genial Investimentos notes that for the telecoms sector, the main highlights should come with the completion of the sale of Oi Móvel.

“With this, the expectation is that the mobile customer base of both Tim (TIMS3) as much Alive phone (VIVT3) Including the new numbers, even if they are not counted as revenue. The Genial report indicates the transition period from Oi’s old customers to its new operators.

Another point mentioned by analysts is that progress in 5G network It should appear in the results later, as the movement began at the end of the quarter.

They stress that “the biggest surprise for Oi should be the closing of the sale of Oi Móvel, as well as the sale of the control of the former InfraCo (currently V.tal) and the disclosure of its results considering such events.”

Genial reiterates its recommendation to buy Oi . arrowat the target price of 1.10 Brazilian riyals.

Positive vision for the future of Oi

On the other hand, BTG Pactual (BPAC11), without making predictions about 2Q22 from Oistates that the company is pursuing in line with strategic planning, which aims to remotely exit the case of judicial redemption.

This stems from the proposal for R$1.697 billion by a subsidiary of Highlight For the purchase of 8,000 fixed operation telecom infrastructure sites, for a total of R$1.1 billion to be received at the closing date of the deal and R$600 million by 2026.

BTG analysts, in a report, noted that the model to be used in the business will be a “sell-back-leasing” model, i.e. Oi, from the moment of sale, will lease back these Highline locations to provide its fixed line. However, the company has not provided much information about the payment terms of the R$600 million that will be received in 2026.

“We believe this is related to the end of the franchise,” the BTG report states. “Because these assets refer to the fixed-line operation (STFC), which Oi has a franchise through to 2025, it is likely that the second payment will be related to revenue metrics that Highline will receive after the franchise ends,” BTG says.

if it was Obsession The fixed operating sites will be closed with all of their assets, contracts, rights, obligations, licenses and other equipment necessary to operate them.

Therefore, it is necessary to evaluate: how is the acquisition of an asset related to waiverThe selling process is not so simple. “Plus consent whereOi, you will need to prove it Anatel That the sale of these sites will not have any impact on the continuity of the franchise services, because the STFC operation may use towers in some cases, to transmit information over the radio,” says BTG.

“The binding proposal provides that the conclusion of the transaction is subject, among other conditions usual prior to this type of transaction, to applicable regulatory approvals, including Anatel and Cade,” explains Oi, in effect.

Oi’s main goal is to meet cash needs until 2025, when the company will pay the debt securities. Selling should help achieve this goal, even as potential rental expenses increase.

“We don’t have a vision of how much Oi will spend on leasing due to the new contract,” BTG says, noting that the investment bank will continue to assess the situation and be a revised model in the coming weeks.

BTG Pactual expects the Oi sale to close by the end of 2022.

Risks that may lead to cancellation of the sale of Oi Móvel

Anatel’s opinion shows that TIM, Vivo and Claro, the companies that bought Oi Móvel, are not complying with one of the remedies created during the deal.

Thus, according to a report by Genial Investimentos, this complex situation Buy Oi Móvel It may ‘terminate deal cancellation’.

“With the justification that companies will not comply with drug taxesAnatel analyzes the possibility of reviewing pre-approval for the sale of Oi’s mobile assets, as well as other penalties that show the body’s dissatisfaction with the developments of the case,” says Genial.

Meanwhile, TIM, Vivo and Claro are looking for a way to avoid losses as a result of the decision, to implement the values ​​they believe are fair to the continuation of their operations related to national roaming services. More information on the case should be released throughout this week,” the home analysts continued.

Despite this, the hypothesis Cancel Oi Mobile purchase considered improbable.

Analysts remember that the deal has already been completed: “The cancellation of the prior approval and the consequent cancellation of the purchase have remote chances of it happening due to the many negative effects that this decision will generate.”

According to House, in this scenario, Oi will not be able to get out of the judicial redemption.

Part of its debts to the concerned creditors have already been paid, and the customer base is already being carried forward. Thus, we believe that the possible course is a compromise between the parties, without the need to overturn the decision to sell Oi Movil,” they concluded.

See the remedies for buying Oi Móvel:

  • Wireless Access Network Sharing Contracts (RAN Sharing Network Sharing), which consists of sharing resources between two companies
  • Spectrum leasing, enabling small businesses to offer mobile services (in municipalities with less than 100,000 inhabitants in the former Oi Móvel region)
  • The National Roaming Agreement, which allows the operation of mobile phone services outside the operator’s coverage area throughout the Brazilian territory
  • MVNO (Mobile Virtual Network Operator) agreement, in which the operator purchases the right to use part of the infrastructure provided by one or more mobile operators with towers and antennas to provide access to mobile networks on a wholesale basis.

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This Tuesday (9), Oi shares are down 3.07%, quoted at R$0.63. In the year, losses accumulate 16.00%.

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