3Q07 Results: VIVO Participacoes S.A.
November 05 2007 - 5:00PM
PR Newswire (US)
SAO PAULO, Brazil, Nov. 5 /PRNewswire-FirstCall/ -- VIVO
Participacoes S.A. (VIVO) (Bovespa: VIVO3 [ON = Common Shares] /
VIVO4 [PN = Preferred Shares]; NYSE: VIV) announced its
consolidated results for the third quarter of 2007 (3Q07). Vivo
recorded several major achievements in the third quarter of 2007,
including an agreement to acquire control of Telemig Celular, which
has already been approved by Anatel, and Amazonia Celular, which is
still being analyzed by the agency. We also acquired frequency
spectrum and licenses which will allow us to operate in areas where
we do not maintain a commercial presence, especially the Northeast,
and increase network capacity in our existing areas. At the same
time, we have been moving ahead with our operational and financial
improvement plan, as follows: R$ million 3Q07 2Q07 3Q06 Net Revenue
3,248.5 3,021.0 2,824.9 Total Operating Costs (2,415.2) (2,386.8)
(2,109.3) EBITDA 833.3 634.2 715.6 EBITDA Margin (%) 25.7% 21.0%
25.3% Net Result 4.4 (112.8) (196.9) Number of customers
(thousands) 31,320 30,240 28,726 Market share 36.8% 37.3% 39.3% Net
Additions (thousands) 1,079 1,210 201 The implementation of the GSM
network and its commercial operation has been a great success. At
the close of September, the Company had more than 6.7 million GSM
handsets; Also at the end of September, the customer base reached
31,320,000 clients, ensuring our leadership in our operating area,
with a market share of 36.8%. Our market share for Brazil as a
whole was 27.8%; Service Revenue of R$2,845.8 million, an increase
of 15.3% over 3Q06 and of 7.5% over 2Q07; EBITDA grew 31.4% in
3Q07, reaching R$ 833.3 million, with EBITDA Margin of 25.7%, up
4.7 percentile points in relation to 2Q07; The provision for bad
debt was R$ 80.4 million in the quarter, representing 1.7% of the
gross revenue, a reduction of 45.6% in relation to 3Q06 and of
20.6% in relation to 2Q07; Operating cash flow plus the change in
working capital recorded R$ 961.8 million in the year-to-date
figure, materially contributing to the increase of the company's
economic value; Net debt recorded the amount of R$2,957.7 million
in 3Q07, representing a reduction of 28.7% in relation to 3Q06; Net
Profit of R$ 4.4 million in the quarter. To download the complete
version of the Company's earnings release, please visit our
website: http://www.vivo.com.br/ir Investor Relations +55 11
7420-1172 DATASOURCE: Vivo Participacoes S.A. CONTACT: Investor
Relations, Vivo Participacoes, +011-5511-7420-1172, Web site:
http://www.vivo.com.br/ir
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