Vivo reports 1Q results

10 May 2007

Vivo Participacoes, Brazil’s largest cellco by subscribers, has reported a fall in first quarter net loss to BRL19.3 million (USD9.6 million), from a loss of BRL179.3 million in 1Q 2006, on the back of a 10.6% rise in operating revenues to BRL2.85 billion and a reduction of debt. Vivo cut debt by 26% in the twelve months to 31 March 2007. EBITDA rose from BRL717.1 million to BR757 million.

Sales rose after Vivo encouraged subscribers to use more services by cutting fees and introducing promotions such as free minutes for frequent users, said Chief Executive Roberto de Lima. That helped make up for a 3.7 percent decline in subscribers to 29.03 million. Vivo’s market share fell from 43.5% at the end of 1Q 2006 to 37.6% a year later.