Vivo: 3Q09 net income more than doubles on higher data revenues and lower costs

6 Nov 2009

Brazil’s largest mobile phone operator by subscribers, Vivo Participacoes, today reported its financial results for the three months ended 30 September 2009, showing that net profits more than doubled year-on-year as a result of lower operating costs and financial expenses and a significant increase in data services revenue. The cellco said net profit reached BRL340 million (USD196 million) in the three-month period, compared with BRL133.9 million a year ago, as the costs of goods sold (including mobile phone equipment), dropped for the second straight quarter. Overall operational expenses and costs dipped 1.2% y-o-y and its provisions for unpaid bills fell 58%, it said in a securities filing. Meanwhile, net revenues climbed marginally from BRL4.08 billion to BRL4.09 billion, driven by data revenue sales which jumped 40%. Average revenue per user (ARPU) fell 10.2% year-on-year however, to BRL26.4, although Vivo was keen to point out the figure was actually up 0.4% quarter-on-quarter. EBITDA rose 6% from BRL1.32 billion to BRL1.40 billion, it said. At the end of September Vivo had close to 49 million mobile customers, up 15.5% on the same time in 2008, and the churn rate was trimmed from 2.6% to 2.5% it said.