According to BNamericas, Brazil’s second largest cable TV operator Vivax reported a tripling in net profits for the first quarter of 2006 to BRL7.19 million (USD3.3 million), up from BRL2.13 million a year ago. Vivax’s Q1 EBITDA was BRL31.6 million, up 44.3% year-on-year. The cableco, which provides pay television and broadband internet services in its primary market of the State of São Paulo, where it has 34 operating concessions, reported gross revenues of BRL88.3 million, up 20.7% compared with BRL62.6 million a year earlier. Net revenues were BRL75.7 million, up from BRL62.6 million in the first quarter of 2005, driven by a 45.2% growth in broadband, which contributed gross revenues of BRL22 million; pay-TV services accounted for BRL56.5 million (+10.8%).
At the end of March 2006 Vivax had 302,001 pay-TV subscribers signed up to one of its packages, up from 275,026 a year ago, while the number of broadband users jumped 60% to 96,469. Of the total number of broadband users, 74,667 were also TV customers, meaning the number of people taking a bundled service has risen 64.5% from 45,404 in the first quarter of 2005.