View
340
Download
0
Category
Tags:
Preview:
DESCRIPTION
Apresentation of 2nd Quarter 2007 Results
Citation preview
1
2Q07 Results Vivo Participações S/AJuly 20, 2007
public copyright©vivo2007
public copyright©vivo20072
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
3
Vivo Participações 2Q07 Results
public copyright©vivo2007
Operating PerformanceFinancial PerformanceVivo
Table of contents
public copyright©vivo20074
Vivo Participações 2Q07 Results
34.7% share of net additions in our operational area in 2Q07
125% YoY growth in high-end postpaid additions and 63% growth QoQ
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
Customer Base
2Q06 1Q07 2Q07
28,525 29,03030,240
Vivo changed and the market responded
7,911 points of sale
338,000 recharge points
2,311 municipalities covered
Distribution channels
+ 6.0%+ 4.2%
* Source Anatel
public copyright©vivo20075
Vivo Participações 2Q07 Results
33% 33% 42%
43% 34%
43%
24% 24%
24%
2Q06 1Q07 2Q07
Subsidy Commissioning Publicity
*Blended SAC
+ 7%- 16%
SAC*
128
100107
Components
26% reduction in subsidy per unit YOY with the GSM launch
Reduced commissioning in the year
Lower entry barriers
Advantageous handset acquisition agreements
public copyright©vivo20076
Vivo Participações 2Q07 Results
14.4 16.1 16.2
9.7
13.9 13.7
2Q06 1Q07 2Q07
Outgoing Inbound B&K Effect
3139 42
36
36 35
2Q06 1Q07 2Q07
Outgoing Inbound
777567
+ 14.9%+ 2.7%
29.930.0
24.1
+ 24.1%- 0.3%
ARPU MOU
3.9
ARPU and MOU Evolution
4.0
+12.5%
+35.5%
7
Vivo Participações 2Q07 Results
public copyright©vivo2007
Operating PerformanceFinancial PerformanceVivo
Table of contents
public copyright©vivo20078
Vivo Participações 2Q07 Results
R$ million
Net Service Revenues
169 201 201
1,147 1,223 1,260
8681,185 1,187
2Q06 1Q07 2Q07
Other Services Subscriptions and usage
Network usage B&K Effect
2,184
2,609 2,648
+ 21.2%
337 358
Data + VAS Revenue
7.9% of net service revenue
15% year-over-year growth
More than 200,000 customers with mobile Internet access
20% growth over the previous quarter
+ 1.5%
public copyright©vivo20079
Vivo Participações 2Q07 Results
*Excluding depreciation
Operating Expenses*R$ million
418
716759
2Q06 1Q07 2Q07
155174 165
2Q06 1Q07 2Q07
547
352
549
2Q06 1Q07 2Q07
339
107 101
2Q06 1Q07 2Q07
664
512627
2Q06 1Q07 2Q07
146 146 162
2Q06 1Q07 2Q07
9.0%2.7% 2.3%
% PDD over gross revenueIncremental PDD
∆% QoQ = - 5.0% ∆% YoY = + 6.2% compensation Collective Union agreement
Severance payments
H. R.
∆% QoQ = +5.9% ∆% YoY = +81.4% third-party services third-party services
Fistel contribution Fistel contribution
adjusted for end of B&K, 2Q07 would be flat over the 2Q06
Cost of Services Rendered349.5
∆% QoQ = - 5.8% ∆% YoY = - 70.1% Strict controls over new costumers acquiredduring the end-of-year campaigns and the the overdue portfolio
Provisions for Bad Debt
Cost of Goods Sold
∆% QoQ = + 56.0% ∆% YoY = + 0.3% number of gross additions
General and Administrative Expenses
∆% QoQ = + 10.8% ∆% YoY = + 11.1%
technical assistance for technical assistance for technology transfers technology transfers rent, insurance legal expensescondominium fees and plant gains in efficiency triggered bymaintenance/conservation the conclusion of the unification of
the systemic platforms
Selling Expenses
∆% QoQ = + 22.5% ∆% YoY = - 5.6% publicity and commissions commissions and public services
third-party services and client-care
325.5349.5
161.5
Bill&Keep Effect
public copyright©vivo200710
Vivo Participações 2Q07 Results
634.2
306.3
757.0
26.6%
21.0%
11.8%
2Q06 1Q07 2Q07
* EBITDA – CAPEX + Change in working capital
29.7%
23.5%
EBITDA Margin adjusted for B&K
217.5296.7
137.6
760
2Q06 2Q071Q07
EBITDA, Cash Flow and Net Result
7.9
Bill&Keep effect
R$ million
EBITDA Margin
2Q06 2Q071Q07
+ 77%
- 493.1
-19.3-112.8
Cash Flow * Net ResultEBITDA
11.2
public copyright©vivo200711
Vivo Participações 2Q07 Results
2Q06 1Q07 2Q072Q06 1Q07 2Q07
Short Term Long Term
3,305.1
4,333.9
68%60%
32% 33%
3,705.7
4,686.4
67%
40%
3,336.3
4,057.2
213.6
118.7
124.4
- 21%
- 9%
- 23%
+ 1%
2Q06
1Q07
2Q07
Financial Result, Gross Debt and Net DebtR$ million
Net DebtGross DebtFinancial Result
public copyright©vivo200712
Vivo Participações 2Q07 Results
11%
8%
13%
139.698.1
190.3
87.6
43.8
46.3
110.7
93.5
100.7
2Q06 1Q07 2Q07
Network Technology Others
337.9 337.3
235.4
CAPEXR$ million
Main Investments
expansion of coverage
increase in data network infrastructure
expansion of virtual recharge partners
São Paulo subway mobile network
new billing format
Total CapEx GSM : 76% absorbed% Capex/Net Revenue
13
Vivo Participações 2Q07 Results
public copyright©vivo2007
Operating PerformanceFinancial PerformanceVivo
Table of contents
public copyright©vivo200714
Vivo Participações 2Q07 Results
Rewards Program
Restructuring of Plans
Recovery of suspended customers
customer recapture
Alteration of Recharge MIX
Traffic and recharge incentives through bonuses*:
Actions
0.3p.p. in the churn rate QoQ
18% of recharge volume YoY and 8% QoQ
23% of recharge revenue YoY and 3% QoQ
64% of loyalty/retention through rewards programYoY and 17% QoQ
Loyalty and Retention
Results
Loyalty-building and retention efforts focused on high and medium-value customers
R$21R$5 R$11 R$16
R$35 R$60 R$100 R$200
Bonus: 10 sms
7d on net
Bonus: 5 sms
Bonus: 5 sms
Bonus: 50 sms
Bonus: 50 sms
Bonus 50 sms
Bonus: 50 sms
* Example of recharge mix with bonuses for the state of São Paulo
public copyright©vivo200715
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
public copyright©vivo200716
Vivo Participações 2Q07 Results
Final Remarks
public copyright©vivo200717
Vivo Participações 2Q07 Results
• 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.
Disclaimer
Recommended