2Q08 Results: VIVO Participacoes S.A.
July 30 2008 - 7:00AM
PR Newswire (US)
SAO PAOLO, Brazil, July 30 /PRNewswire-FirstCall/ -- VIVO
Participacoes S.A. (VIVO) (NYSE: VIV; Bovespa: VIVO3 [ON = Common
Shares] / VIVO4 [PN = Preferred Shares]), announced its
consolidated results for the second quarter of 2008 (2Q08). In the
second quarter 2008, Vivo consolidated its leadership position on
the Brazilian market in number of customers, which was mainly due
to its recognized services quality, strategy and position in the
Mother's Day and Valentine's Day campaigns and to the conclusion of
the purchase of Telemig Celular Participacoes (herein referred to
as Telemig) on April 03, 2008. In addition to reaching the
outstanding benchmark of 40.4 million customers in the end of June,
Vivo has continued to obtain the best quality acknowledged by its
customers, being one of the companies with lowest number of
complaints filed with ANATEL. R$ million 2Q08 1Q08 2Q07 Net Revenue
3,791.3 3,681.3 3,358.5 Total Operating Costs (2,912.0) (2,376.5)
(2,600.7) EBITDA 879.3 1,304.8 757.8 EBITDA Margin (%) 23.2% 35.4%
22.6% Net Result (59.5) 256.2 (65.1) Number of customers (thousand)
40,345 38,309 33,786 Market share 30.4% 30.4% 31.7% Net Additions
(thousand) 2,125 925 1,259 In June, the customer base reached
40,435 thousand customers, already considering those obtained with
the purchase of Telemig, with a 30.4% market share; In 2Q08, Vivo
was the leading company in net addition, reaching 2,125 thousand
customers, the highest market share, reflecting the success of the
Mother's Day and Valentine's Day campaigns; Highest market share of
net additions in 2Q08, in the postpaid segment, with 36.6%; Service
Revenue of R$3,390.0 million, an increase of 14.4% over 2Q07 and of
1.3% over 1Q08; EBITDA margin in the quarter of 23.2% growing 0.6
percentile points over 2Q07. EBITDA reached R$ 879.3 million in the
quarter, a growth of 16.0% over 2Q07; Control over structural
costs, which recorded a reduction of 4.7% in the quarter, in
comparison with 2Q07; The provision for bad debt was R$ 90.8
million in the quarter, representing 1.7% of the gross revenue,
which represents a reduction of 15.8% in relation to 2Q07, keeping
control over default; Conclusion of the Voluntary Public Tender
Offer for the preferred shares and beginning of the Mandatory
Tender Offer for Disposal of Share Control (Tag Along) for
acquisition of the outstanding shares of Telemig Celular
Participacoes and Telemig Celular. 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: VIVO Participacoes
S.A. Investor Relations, +55-11-7420-1172, Web site:
http://www.vivo.com.br/ir
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