3. RESULTS
R$ billions
1Q08 1Q07
Revenue up by 16.9% 3.3 2.9
Expenses grow by 13.2% (2.4) (2.1)
Ebitda increases by 27.0% 1.0 0.8
Margins grow by 2.3 p.p. 28.8% 26.6%
Ebit up by 60.1% 0.3 0.2
Positive Net Result 89.6 (19.3)
10. Data and VAS Revenue NET SERVICE
10.4% of net service revenue
47.7% YoY growth
REVENUE
R$ million
+ 15.8 % DATA REVENUE
+ 1.2 %
315
2,986 3,023
286
2,609
214 50%
1,390 1,367 46%
1,192
47%
45% 43%
1,312 47%
1,287
1,185
6% 9% 7%
1Q07 4Q07 1Q08
214 286 315
Others WAP + ZAP SMS
19 24 27
1Q07 4Q07 1Q08
Other Services Data and VAS
Network Usage Franchising and Usage
11. OPERATING COSTS*
R$ million
Operating costs under
strict control
702
Services Rendered 666
595
502
Goods Sold 612
352
680
Selling Expenses 756
604
General and 156
166
Administrative 146
160
H.R. 182
174
164
Fistel, Fust, Funtel 149
142
1Q07 4Q07 1Q08
* Excluding depreciation
12. EBITDA AND EBITDA MARGIN
R$ million
BALANCE BETWEEN 908 961
SALES AND PROFITABILITY
757
Revenue 16.9% YoY
28.8%
Costs 13.2% YoY 26.6% 26.9%
EBITDA 27% YoY
1Q07 4Q07 1Q08
EBITDA EBITDA Margin
15. FINANCIAL RESULT,
GROSS DEBT AND NET DEBT
R$ million
FINANCIAL RESULT GROSS DEBT NET DEBT
+ 18.4% - 12.0%
+ 9.6% + 12.7%
3,305.1
4,803.4 2,907.7
4,381.4 2,579.3
4,057.2
118.7 111.4 55% 57%
68%
70.5
45% 43%
32%
1Q07 4Q07 1Q08 1Q07 4Q07 1Q08 1Q07 4Q07 1Q08
Short Term Long Term
16. CAPEX
R$ million
29.0% % Capex/Net Revenue
8.3% 7.7%
977.1
MAIN INVESTMENT 185.7
PROJECTS
129.0
Increase in GSM
Network Capacity and
Quality 235.4 662.4 256.6
New Customer 93.5 84.4
36.6
Service and Front 43.8
135.6
98.1
Office system
1Q07 4Q07 1Q08
Adaptation to the Network Technology Others
Number Portability
project
17. YEARS
Great reasons to
celebrate!
On April 13 Vivo completed 5 years of
existence.
The Company’s history is full of achievements
and accomplishments . In these five years:
Market leader
More than 38 million customers
Brazil’s most valuable cell phone operator brand
More cost-effective plans
Best service quality
18. DISCLAIMER
This presentation may contain forward-looking statements
concerning future prospects and objectives regarding growth
of the subscriber base, a breakdown of the various services to
be offered and their respective results. The exclusive purpose
of such statements is to indicate how we intend to expand our
business and they should therefore not be regarded as
guarantees of future performance.
Our actual results may differ materially from those contained
in such forward-looking statements, due to a variety of
factors, including Brazilian political and economic factors, the
development of competitive technologies, access to the
capital required to achieve those results, and the emergence
of strong competition in the markets in which we operate.