Vivo: net loss narrows to USD60m in Q2

23 Jul 2007

Brazil’s leading mobile operator by subscribers, Vivo Participações, posted a net loss of BRL113 million (USD60 million) in the three months to 30 June 2007, down 77% compared to the BRL493 million losses booked in 2Q06, the company said in a statement. Telefónica and Portugal Telecom’s 50/50 joint venture reported net revenues of BRL3.02 billion in the period, up 16.3% year-on-year, while EBITDA rose sharply from BRL306 million to BRL634 million; the EBITDA margin was 21%, up from 12%. At the end of June Vivo had signed up 30.2 million customers, up from 28.5 million a year earlier. ARPU improved from BRL24 in 2Q06, to nearly BRL30.

Vivo is working to overlay its network with GSM technology and confirmed to BNamericas that it has deployed 76% of the BRL11.1 billion investment earmarked for a GSM/EDGE overlay network in 2006 and 2007. It expects to complete the investment in the third quarter of this year and says it has already sold 3.3 million GSM handsets. The operator declined to comment on its CAPEX plans for 2008 but said that any change in spending ‘depends on the auction of the 1.9GHz licence which we want to operate in Minas Gerais state and the northeast of Brazil, where we do not have commercial operations’. Vivo is also interested in acquiring 3G operating licences but is awaiting clarification from Anatel on the licensing procedure before putting its cards on the table.