Vivo Participacoes S.A. (VIV)

[BSWB]

4Q06 Results: VIVO Participacoes S.A.
Thursday February 8, 6:18 am ET


SAO PAOLO, Brazil, Feb. 8 /PRNewswire-FirstCall/ -- VIVO Participacoes S.A. (VIVO) (Bovespa: VIVO3 [ON = Common Shares] / VIVO4 [PN = Preferred Shares]; NYSE: VIV), announced its consolidated results for the fourth quarter and year of 2006 (4Q06 and 2006). Vivo's 4Q06 figures reflect the results of the work developed in the management's priority projects in several areas, such as corporate reorganization, systems unification, fraud and cloning combat, change in customer policies and processes for collection and credit, implementation of new price plans and cost reduction, among others, being the sole company to offer CDMA/EV-DO and GSM/EDGE convertible into W-CDMA technologies to its customers.


R$ million 4Q06 3Q06 4Q05

Net Revenue 2,936.5 2,824.9 2,987.2
Total Operating Costs (2,078.9) (2,109.3) (2,337.1)
EBITDA 857.6 715.6 650.1
EBITDA Margin (%) 29.2% 25.3% 21.8%
Net Result 885.6 (196.9) (263.3)

Number of customers (thousand) 29,053 28,726 29,805
Market share 38.2% 39.3% 44.2%
Net Additions (thousand) 328 201 965

The conclusion of the second stage of the Corporate Reorganization in October has already enabled benefits to the organization in terms of efficiency, simplification of administrative structures and resources, which had a positive impact on the bottom line for the quarter.

The recovery of net additions confirms the focus on actions that offers plans and services that are adequate to the consumption profile of each customer.

Upon reaffirming the commitment to provide the best service and assistance, Vivo recorded 99% completed calls rate to call center, one of the most difficult ratios to be achieved among those established by ANATEL's quality goals, having exceeded the pre-established goals of this regulatory institution.

Unified systems with more than 95% of our customers integrated. Unification gains also include greater efficiency in processes such as billing and collection, in addition to providing a single platform that allows us to develop products and services and deliver them faster to the market.

Sustainable combat against cloning and fraud, reducing the losses to a negligible level, tending toward zero.

The provision for bad debt of R$73.0 million in the quarter, representing 1.8% of the gross revenue, the lowest rate in the last two years, is a result of a specific campaign conducted in this quarter, showing a reduction of 50.6% in relation to 3Q06, and by 72.0% in relation to 4Q05.

EBITDA of R$857.6 million, with Ebitda margin of 29.2% in the quarter, represented a growth of 19.8% in relation to 3Q06. The year-to-date EBITDA was R$2,596.6 million, with a margin of 23.7%.

The operating cash flow plus the change in working capital recorded R$1,228.4 million in the year-to-date basis.

The net indebtedness in the amount of R$3,553.3 million presents a 14.3% reduction in the quarter and 14.5% in comparison to 4Q05, with an increase of almost 50% in cash and cash equivalent when comparing to the 3Q06.

Net profit of R$885.6 million in the quarter and of R$ 16.3 million year- to-date, mainly due to the benefits derived from the conclusion of the corporate reorganization

To download the complete version of the Company's earnings release, please visit our website: www.vivo.com.br/ir




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Source: VIVO Participacoes S.A.
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