CORRECTED-Brazil telecoms firm Oi's revenue continues to fall in Q1

(Corrects headline)

SAO PAULO, May 13 (Reuters) - Brazilian telecommunications firm Oi SA reported a first-quarter net profit of 679 million reais ($170 million), in a quarter its revenue continued to fall.

This compares to a profit of 30.5 billion reais in the first quarter of 2018 after Oi reached an agreement with creditors in an in-court debt reorganization of the company.

A debt for equity swap and a new capital injection were approved last year. The capital raise was completed in January.

In a securities filing late on Monday, Brazil’s largest fixed-line operator said its net revenue fell 9.5% year-on-year to 5.1 billion reais due to a fiercer competition in Brazil.

Recurring earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 3.5% in the first quarter to 1.6 billion reais. Including one-time items, EBITDA rose 42% to 2.2 billion reais.

Oi’s total debt at the end of March stood at 16.3 billion reais, 0.5% lower than that at the end of 2018.

The company’s capital expenditure came in at 1.7 billion reais, down 17.5% from the last quarter of 2018. Oi seeks to expand its high-speed broadband to compete more effectively with the local units of Telefonica SA and Telecom Italia SpA .

In June 2016, Oi filed for Latin America’s largest-ever bankruptcy protection proceeding, to restructure a debt of approximately 65 billion reais ($16.26 billion). ($1 = 3.9928 reais) (Reporting by Gabriela Mello and Tatiana Bautzer; Editing by Shreejay Sinha)