Brazil's Padtec revenue jumps 86% in Q2 on optical fibre demand

Brazil's Padtec revenue jumps 86% in Q2 on optical fibre demand

Brazilian manufacturer and provider of optical solutions serving the network operators, IT, and multimedia, Padtec reported operating revenue of BRL 119.6 million for 2Q 2021, an increase of 38.8 percent on the previous quarter and 86.3 percent year-on-year.

For the first half of 2021, the company reported gross operating revenue of BRL 205.7 million, representing a growth of 63.7% compared to the same period last year.

Padtec said that the equipment business unit based on the DWDM (Dense Wavelength Division Multiplexing) technology played an important role in the good results achieved by Padtec, recording a growth of 75.6% in its revenue in the first six months, compared to the same period in 2020.

Argemiro Sousa, Padtec’s Business Director, pointed out the increase in demand for broadband and new services and the launch of new products by the company as the main factors responsible for the expansion of its business.

He added that this growth, which had already been taking place due to the evolution of telecommunications networks in the country, was accelerated by the need for social isolation, which requires increasingly greater data transmission capacities to meet the increase in traffic and services throughout Brazil.

“Our customers continue to report strong growth in demand for bandwidth. To meet the significant increase in demand, many of them have activated new data transmission channels in their installed optical systems, or expanded their infrastructure”, he added.

Carlos Raimar, Padtec’s CEO, stated: “The change in the dynamics of the Brazilian telecommunications market, with the accelerated adoption of fiber optic networks for residential and corporate applications, is now being replicated in other countries in Latin America. It is, without a doubt, an opportunity to expand our business in these regions."

Carlos added: "In addition, the prospect of activating 5G mobile networks in Brazil should generate a strong push to build communication networks across the country, both by operators – already active in the mobile segment – and by regional providers. To support 5G, investment in high-capacity optical networks should significantly increase the demand for DWDM equipment, benefiting our direct customers and their users and paving the way for a society with more connectivity and quality in data services.”

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