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Semelhante a VIVO - Apresentation of 2nd Quarter 2007 Results (20)
VIVO - Apresentation of 2nd Quarter 2007 Results
- 2. Vivo Participações 2Q07 Results
Highlights
Solid results :
• Repositioning campaign
• Reversal of market share loss
• Churn rate under control
• EBITDA up by 107% YoY
• Net debt down by 23% YoY
• Net result improves by 77% YoY
• Reduction in selling expenses YoY
• Excellent service and network indicators
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- 3. Vivo Participações 2Q07 Results
Table of contents
Operating Performance
Financial Performance
Vivo
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- 4. Vivo Participações 2Q07 Results
Customer Base
Vivo changed and the market responded
+ 6.0%
+ 4.2% 34.7% share of net additions in our operational area in 2Q07
125% YoY growth in high-end postpaid additions and 63% growth QoQ
30,240
28,525 29,030
37.3% market share in our operational area*
84% of total activations in GSM/EDGE
50% of postpaid individual base already with Vivo Escolha
2.3% churn rate in the quarter
Distribution channels
7,911 points of sale
2Q06 1Q07 2Q07 338,000 recharge points
2,311 municipalities covered
* Source Anatel
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- 5. Vivo Participações 2Q07 Results
SAC*
- 16%
+ 7%
Components
128
107
24%
100 26% reduction in subsidy per unit YOY with the GSM launch
24%
24%
Reduced commissioning in the year
43%
34% Lower entry barriers
43%
Advantageous handset acquisition agreements
33% 42%
33%
2Q06 1Q07 2Q07
Subsidy Commissioning Publicity
*Blended SAC
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- 6. Vivo Participações 2Q07 Results
ARPU and MOU Evolution
ARPU
MOU
+ 24.1%
+ 14.9%
- 0.3% + 2.7%
30.0 29.9 75 77
3.9 4.0 67
24.1
36 35
13.9 13.7 36
9.7
+35.5%
+12.5% 39 42
14.4 16.1 16.2
31
2Q06 1Q07 2Q07 2Q06 1Q07 2Q07
Outgoing Inbound B&K Effect Outgoing Inbound
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- 7. Vivo Participações 2Q07 Results
Table of contents
Operating Performance
Financial Performance
Vivo
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- 8. Vivo Participações 2Q07 Results
Net Service Revenues
R$ million
+ 21.2% Data + VAS Revenue
+ 1.5%
2,609 2,648 7.9% of net service revenue
337 358
15% year-over-year growth
2,184
1,185 1,187
868
More than 200,000 customers with
1,147 1,223 1,260 mobile Internet access
169 201 201
2Q06 1Q07 2Q07 20% growth over the previous quarter
Other Services Subscriptions and usage
Network usage B&K Effect
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- 9. Vivo Participações 2Q07 Results
Operating Expenses*
R$ million
9.0%
759 2.7% 2.3%
716
349.5 Cost of Services Rendered
349.5 339 Provisions for Bad Debt
325.5
∆% QoQ = +5.9% ∆% YoY = +81.4%
418 161.5
third-party services third-party services ∆% QoQ = - 5.8% ∆% YoY = - 70.1%
Strict controls over new costumers acquired
Fistel contribution Fistel contribution during the end-of-year campaigns and the
107 101
the overdue portfolio
adjusted for end of B&K,
2Q06 1Q07 2Q07 2Q07 would be flat over the 2Q06 2Q06 1Q07 2Q07
% PDD over gross revenue
Bill&Keep Effect Incremental PDD
664
174 627 Selling Expenses
165
155 H. R. 512
∆% QoQ = + 22.5% ∆% YoY = - 5.6%
publicity and commissions commissions and public services
∆% QoQ = - 5.0% ∆% YoY = + 6.2%
compensation Collective Union agreement third-party services and client-care
2Q06 1Q07 2Q07 Severance payments 2Q06 1Q07 2Q07
547 549
General and Administrative Expenses
Cost of Goods Sold
352 162
146 146 ∆% QoQ = + 10.8% ∆% YoY = + 11.1%
∆% QoQ = + 56.0% ∆% YoY = + 0.3% technical assistance for technical assistance for
number of gross additions technology transfers technology transfers
rent, insurance legal expenses
2Q06 1Q07 2Q07 2Q06 1Q07 2Q07 condominium fees and plant gains in efficiency triggered by
maintenance/conservation the conclusion of the unification of
the systemic platforms
*Excluding depreciation
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- 10. Vivo Participações 2Q07 Results
EBITDA, Cash Flow and Net Result
R$ million
EBITDA Cash Flow * Net Result
29.7%
26.6%
23.5%
21.0%
11.2
7.9
11.8%
760
-19.3
757.0 -112.8
634.2
296.7 - 493.1
306.3 217.5
137.6 + 77%
2Q06 1Q07 2Q07
2Q06 1Q07 2Q07
EBITDA Margin
EBITDA Margin adjusted for B&K * EBITDA – CAPEX + Change in working capital 2Q06 1Q07 2Q07
Bill&Keep effect
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- 11. Vivo Participações 2Q07 Results
Financial Result, Gross Debt and Net Debt
R$ million
Financial Result Gross Debt Net Debt
- 21%
- 23%
+ 1%
- 9%
4,686.4 4,333.9
2Q07 124.4
4,057.2
3,705.7
60% 3,305.1 3,336.3
1Q07 118.7 68% 67%
40%
32% 33%
2Q06 213.6
2Q06 1Q07 2Q07
2Q06 1Q07 2Q07
Short Term Long Term
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- 12. Vivo Participações 2Q07 Results
CAPEX
R$ million
13%
11% Main Investments
337.9 8% 337.3
expansion of coverage
110.7 100.7
235.4
increase in data network infrastructure
46.3
87.6 93.5
expansion of virtual recharge partners
43.8 190.3
139.6 São Paulo subway mobile network
98.1
2Q06 1Q07 2Q07
new billing format
Network Technology Others
Total CapEx GSM : 76% absorbed
% Capex/Net Revenue
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- 13. Vivo Participações 2Q07 Results
Table of contents
Operating Performance
Financial Performance
Vivo
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- 14. Vivo Participações 2Q07 Results
Loyalty and Retention
Actions Results
Rewards Program
0.3p.p. in the churn rate QoQ
Restructuring of Plans
18% of recharge volume YoY and 8% QoQ
Recovery of suspended customers
23% of recharge revenue YoY and 3% QoQ
customer recapture
64% of loyalty/retention through rewards program
Alteration of Recharge MIX YoY and 17% QoQ
Traffic and recharge incentives through bonuses*:
R$5 R$11 R$16 R$21
7d on Bonus: Bonus: Bonus:
net 5 sms 5 sms 10 sms
R$35 R$60 R$100 R$200
Bonus: Bonus: Bonus Bonus:
50 sms 50 sms 50 sms 50 sms
* Example of recharge mix with bonuses for the state of São Paulo
Loyalty-building and retention efforts focused on high and medium-value customers
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- 15. Vivo Participações 2Q07 Results
Positioning
Signs of change:
• National coverage and international roaming
• Leadership in mobile internet access
• Quality and excellence policy
• Brand: The true market leader
• Best call quality
• Launch of new bill format
• Improved customer relations
The results are visible
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- 17. Vivo Participações 2Q07 Results
Disclaimer
• This presentation may contain forward-looking statements concerning future prospects
and objectives regarding growth of the subscriber base, a breakdown of the various
services to be offered and their respective results. The exclusive purpose of such
statements is to indicate how we plan to expand our business and they should therefore
not be regarded as guarantees of future performance.
• Our actual results may differ materially from those contained in such forward-looking
statements, including Brazilian political and economic factors, the development of
competitive technologies, access to the capital required to achieving those results, and
the emergence of strong competition in the markets in which we operate.
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