NETC Posts a 14% Increase in Pay TV Subscriber Base
21 July 2006 - 10:20PM
PR Newswire (US)
SAO PAULO, Brazil, July 21 /PRNewswire-FirstCall/ -- Net Servicos
de Comunicacao S.A. (Nasdaq: NETC; Bovespa: NETC3 and NETC4; and
Latibex: XNET), the largest Pay-TV multi-service operator in Latin
America offering bidirectional broadband internet access (Virtua)
and voice services (Net Fone via Embratel) announces today its
financial results for the second quarter of 2006 (2Q06). Pay-TV and
Broadband maintained the same growth pace as in 1Q06. Subscribers
base increased by 14.0% and 110.0% year-over-year, respectively, as
a result of the Company's ongoing policy of adopting aggressive
sales practices and exploring existing opportunities in the market.
As a result of the organic growth, net revenue ended the quarter at
R$ 466.2 million, 21.2% above the R$ 384.7 million posted in 2Q05.
In the same period, Client ARPU grew by 12%, from R$ 107.78 to R$
120.71, effect of the Company's strategy to increase penetration of
Broadband subscribers over Pay-TV subscriber base. Sticking to its
subscriber expansion policy while keeping track of the return on
this investment, the Company has been maintaining its EBITDA margin
at around 27%. Consolidated EBITDA reached R$ 125.9 million, 10.3%
up on the R$114.2 million recorded in 2Q05. Net debt ended the
quarter at R$ 392.5 million and the Net debt to EBITDA ratio
remained at 0.85x. The Company's operations are generating
sufficient cash to support the investments necessary for growth and
to meet its financial obligations, thus permitting this low
financial leverage. Net income ended the quarter at R$ 21.8
million, reflecting the Company's healthy operating results and
appropriate capital structure. Conference Call -- July 21, 2006 In
English: 2 pm (EST) Phone #: (+1 973) 409-9260 ID Code: 7304439 or
Net Servicos In Portuguese: 11 am (EST) Phone #: (+55 11) 2101-4848
ID Code: Net Servicos Live Webcast (audio):
http://www.ir.netservicos.com.br/ Full Release:
http://www.ir.netservicos.com.br/ For additional information,
please contact Net Servicos Investor Relations: Marcio Minoru
(phone (5511) 2111-2811 or e-mail: ) and Andre Carvalho (phone
(5511) 2111-2983 or e-mail: andre.carvalho @netservicos.com.br)
DATASOURCE: NETC CONTACT: Marcio Minoru, +5511-2111-2811, , or
Andre Carvalho, +5511-2111-2983, , both of NETC Web site:
http://www.ir.netservicos.com.br/
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