SECURITIES AND EXCHANGE COMMISSION
For the month of February, 2009
Commission File Number 1-14493
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____
FOURTH QUARTER 2009 AND YEAR 2009 CONSOLIDATED RESULTS
February 10, 2010 – VIVO Participações S.A. announces today its consolidated results for the fourth quarter 2009 (4Q09) and for the year 2009. The Company’s operating and financial information is presented in Brazilian Reais in accordance with Brazilian Corporate Law, and the comparable figures refer to the fourth quarter (4Q08), except as otherwise mentioned.
Vivo closed year 2009 by keeping and consolidating its leadership position in the most different aspects: it has the highest market share, is the best company in service quality and customer service and has the largest 3G coverage in Brazil, among other points that are worthy of mention. Thus, the company reaffirmed its position as the best option among all the mobile telecom operators in Brazil, providing differentiated products, services and plans for people to connect themselves each time more, at any time, in any place.
Price as of Per share Capital Stock Free Float- ON Shares 11.1% Stock Performance Market Cap R$ 21.8 billion |
HIGHLIGHTS
|
Basis for presentation of results
Figures disclosed are subject to differences, due to rounding-up procedures. Information for 2008 was prepared in consolidation with the results of Telemig Celular Participações, except for 1Q08 (prepared on a combined basis), thus allowing comparison with the year-to-date results for 2009, in which Telemig data is already consolidated and, whenever applicable, re-classified. Worthy of mention that year-to-date figures for 2008 are positively impacted by the R$240 million of ICMS tax reversal in Telemig.
HIGHLIGHTS | |||||||||
Consolidated |
Combined |
||||||||
Consolidated |
Consolidated |
Consolidated |
Accumulated |
||||||
R$ million | 4 Q 09 |
3 Q 09 |
Δ% |
4 Q 08 |
Δ% |
2009 |
2008 |
Δ% |
|
Net operating revenue | 4,319.9 |
4,087.5 |
5.7% |
4,268.3 |
1.2% |
16,363.2 |
15,819.1 |
3.4% |
|
Net service revenues | 3,917.3 |
3,788.7 |
3.4% |
3,788.8 |
3.4% |
15,005.7 |
14,170.0 |
5.9% |
|
Net handset revenues | 402.6 |
298.8 |
34.7% |
479.5 |
-16.0% |
1,357.5 |
1,649.1 |
-17.7% |
|
Total operating costs | (2,907.6) |
(2,683.2) |
8.4% |
(2,872.0) |
1.2% |
(11,144.9) |
(10,951.6) |
1.8% |
|
EBITDA | 1,412.3 |
1,404.3 |
0.6% |
1,396.3 |
1.1% |
5,218.3 |
4,867.5 |
7.2% |
|
EBITDA Margin (%) | 32.7% |
34.4% |
-1.7 p.p. |
32.7% |
0.0 p.p. |
31.9% |
30.8% |
1.1 p.p. |
|
Depreciation and amortization | (833.6) |
(797.1) |
4.6% |
(805.8) |
3.4% |
(3,257.5) |
(3,030.5) |
7.5% |
|
EBIT | 578.7 |
607.2 |
-4.7% |
590.5 |
-2.0% |
1,960.8 |
1,837.0 |
6.7% |
|
Net income | 221.6 |
340.0 |
-34.8% |
222.1 |
-0.2% |
857.5 |
389.7 |
120.0% |
|
Capex | 672.5 |
548.7 |
22.6% |
1,319.8 |
-49.0% |
2,369.3 |
4,015.6 |
-41.0% |
|
Capex over net revenues | 15.6% |
13.4% |
2.2 p.p. |
30.9% |
-15.3 p.p. |
14.5% |
25.4% |
-10.9 p.p. |
|
Accesses (thousand) | 51,744 |
48,847 |
5.9% |
44,945 |
15.1% |
51,744 |
44,945 |
15.1% |
|
Net additions (thousand) | 2,897 |
2,028 |
42.9% |
2,669 |
8.5% |
6,799 |
7,561 |
-10.1% |
Investments (CAPEX)
Investments in the GSM and WCDMA networks. |
CAPEX represents 15.6% of the net revenue in 4Q09, and 14.5% in the year. The expenditures continued to be intended for ensuring: increase in the coverage of the 3rd and 2nd generation networks, expansion of capacity in regions where demand exists, especially the Northeast region, and achievement of goals set forth by Anatel. In addition to the investments in networks, we invested funds for increasing systems capacity, both in hardware and software and for the development and modernization of the customer care network. The year-to-date CAPEX amounted R$ 2,369.3 million, lower than the amount recorded in the same period of previous year, in which licenses were acquired, coverage in Northeast region was started and 3G investments was made. For fiscal year 2010, the Board of Directors of Vivo approved total CAPEX of R$2,490 million. |
CAPEX - VIVO | ||||||
Consolidated |
Combined |
|||||
Consolidated |
Consolidated |
Consolidated |
||||
R$ million | 4 Q 09 |
3 Q 09 |
4 Q 08 |
2009 |
2008 |
|
Network | 407.3 |
332.7 |
978.4 |
1,522.3 |
1,988.7 |
|
Technology / Information System | 114.6 |
105.3 |
109.8 |
346.7 |
292.6 |
|
Adjust of Licenses to Present Value (Inst CVM 469/08) | 0.0 |
0.0 |
74.8 |
0.0 |
1,197.7 |
|
Products and Services, Channels, Administrative and others | 150.6 |
110.7 |
156.8 |
500.3 |
536.6 |
|
Total | 672.5 |
548.7 |
1,319.8 |
2,369.3 |
4,015.6 |
|
% Net Revenues | 15.6% |
13.4% |
30.9% |
14.5% |
25.4% |
CONSOLIDATED/COMBINATED STATEMENTS OF CASH FLOWS | |||||||||
(In millions of Brazilian reais) | 4Q09 | 3Q09 | 4Q08 | 2009 | 2008 | ||||
Cash generation provided by operating activities | 1,287.8 | 1,168.6 | 361.2 | 4,819.4 | 5,193.4 | ||||
Cash applied by investing activities | (452.0) | (548.2) | (294.6) | (2,273.8) | (5,755.2) | ||||
Cash flow after investing activities | 835.8 | 620.4 | 66.6 | 2,545.6 | (561.8) | ||||
Cash applied by financing activities | (434.6) | (1,471.8) | 202.6 | (3,469.9) | 543.4 | ||||
Cash flow after financing activities | 401.2 | (851.4) | 269.2 | (924.3) | (18.4) | ||||
Cash and Equivalents at the beginning | 857.4 | 1,708.8 | 1,913.7 | 2,182.9 | 2,201.3 | ||||
Cash and Equivalents at the end | 1,258.6 | 857.4 | 2,182.9 | 1,258.6 | 2,182.9 |
Cash generation of R$ 2,545.6 million in the year, after investment activities |
In 4Q09 the Company generated R$1,287.8 million of operating cash, part of which was used for payments of investments effected (R$ 452.0 million). The cash balance remaining after the investment activities (R$835.8 million) together with the available cash, was used for payment of loans and their related hedge due in the period. After the investment and financing activities, the Company recorded cash and cash equivalent generation of R$401.2 million. In the comparison with 3Q09, a growth of R$119.2 million was recorded in cash generated from operating activities. This growth is due to increased operating revenue in the period, partially offset by operating disbursement in excess of what was recorded in 3Q09. The reduction in cash consumption of R$96.2 million in the investment activities refers to the de-acceleration in the Capex realization in the last quarter of the year, which resulted in cash flow after investment activities of R$215.4 million higher than 3Q09. Added to this result, there was a reduction in cash consumption by the financing activities in the amount of R$ 1,037.2 million, which was mainly caused by the prepayment of 88.8% of the 3G licenses in 3Q09, allowing a positive variation in the cash flow after financing activities in the period of R$1,252.6 million. In the comparison with 4Q08, an increase of R$926.6 million was recorded in the operating cash flow, which was due to the increased amount of operating revenue as a result of the increase in customer base. On the other hand, the investment activities increased, accounting for the consumption of R$157.4 million, which provided cash after investment activities of R$769.2 million in excess of what was recorded in 4Q08. As for the financing activities, in the 4Q09 there was more payment of loans and the corresponding hedges, as well as payments of dividends and interest on the own capital, resulting in a consumption of R$637.2 million, which caused the cash flow after financing activities to record an increase of R$132.0 million. The figures mentioned here are part of the “Statement of Indirect Cash Flow” presented on page 16.
|
CONSOLIDATED OPERATING PERFORMANCE - VIVO | |||||||||
Accumulated | |||||||||
4 Q 09 | 3 Q 09 | Δ% | 4 Q 08 | Δ% | 2009 | 2008 | Δ% | ||
Total number of accesses (thousand) | 51,744 | 48,847 | 5.9% | 44,945 | 15.1% | 51,744 | 44,945 | 15.1% | |
Contract | 9,784 | 9,267 | 5.6% | 8,561 | 14.3% | 9,784 | 8,561 | 14.3% | |
Prepaid | 41,960 | 39,580 | 6.0% | 36,384 | 15.3% | 41,960 | 36,384 | 15.3% | |
Market Share (*) | 29.75% | 29.40% | 0.35 p.p. | 29.84% | -0.09 p.p. | 29.75% | 29.84% | -0.09 p.p. | |
Net additions (thousand) | 2,897 | 2,028 | 42.9% | 2,669 | 8.5% | 6,799 | 7,561 | -10.1% | |
Market Share of net additions (*) | 37.0% | 31.2% | 5.8 p.p. | 27.1% | 9.9 p.p. | 29.2% | 25.5% | 3.7 p.p. | |
Market penetration | 90.5% | 86.8% | 3.7 p.p. | 79.1% | 11.4 p.p. | 90.5% | 79.1% | 11.4 p.p. | |
SAC (R$) | 58 | 77 | -24.7% | 74 | -21.6% | 77 | 80 | -3.8% | |
Monthly Churn | 2.5% | 2.5% | 0.0 p.p. | 2.5% | 0.0 p.p. | 2.5% | 2.6% | -0.1 p.p. | |
ARPU (in R$/month) | 26.1 | 26.4 | -1.1% | 29.1 | -10.3% | 26.5 | 29.2 | -9.2% | |
ARPU Inbound | 10.6 | 11.0 | -3.6% | 12.4 | -14.5% | 11.0 | 12.9 | -14.7% | |
ARPU Outgoing | 15.5 | 15.4 | 0.6% | 16.7 | -7.2% | 15.5 | 16.3 | -4.9% | |
Total MOU (minutes) | 119 | 89 | 33.7% | 85 | 40.0% | 82 | 87 | -5.7% | |
MOU Inbound | 27 | 28 | -3.6% | 31 | -12.9% | 28 | 32 | -12.5% | |
MOU Outgoing | 92 | 61 | 50.8% | 54 | 70.4% | 54 | 55 | -1.8% | |
Employees | 10,598 | 10,561 | 0.4% | 8,386 | 26.4% | 10,598 | 8,386 | 26.4% | |
(*) source: Anatel |
OPERATING HIGHLIGHTS
Quality, differentiated offers and actions to develop customer base contributed to the increase in the number of accesses.
|
|
Acquisition cost rationality reduces SAC by 21.6% in 4Q09. |
|
Churn remained stable in the quarter.
ARPU of R$ 26.1 in the quarter, a small dilution in relation to the previous quarter.
|
|
Growth of the outgoing traffic due to the campaigns to increase usage |
|
NET OPERATING REVENUES - VIVO | |||||||||
Consolidated | Combined | ||||||||
Consolidated | Consolidated | Consolidated | Accum | ||||||
R$ million | 4 Q 09 | 3 Q 09 | Δ% | 4 Q 08 | Δ% | 2009 | 2008 | Δ% | |
Access and Usage | 1,711.9 | 1,709.6 | 0.1% | 1,804.2 | -5.1% | 6,768.6 | 6,494.0 | 4.2% | |
Network usage | 1,540.2 | 1,531.5 | 0.6% | 1,562.5 | -1.4% | 6,053.0 | 6,039.7 | 0.2% | |
Data Revenues plus VAS | 625.3 | 510.5 | 22.5% | 379.4 | 64.8% | 2,035.4 | 1,438.9 | 41.5% | |
SMS + MMS | 281.6 | 236.8 | 18.9% | 193.7 | 45.4% | 975.4 | 725.9 | 34.4% | |
Internet Revenues | 303.3 | 235.8 | 28.6% | 136.6 | 122.0% | 894.1 | 507.3 | 76.2% | |
Other Data Revenues plus VAS | 40.4 | 37.9 | 6.6% | 49.0 | -17.6% | 165.9 | 205.7 | -19.3% | |
Other services | 39.9 | 37.1 | 7.5% | 42.7 | -6.6% | 148.7 | 197.4 | -24.7% | |
Net service revenues | 3,917.3 | 3,788.7 | 3.4% | 3,788.8 | 3.4% | 15,005.7 | 14,170.0 | 5.9% | |
Net handset revenues | 402.6 | 298.8 | 34.7% | 479.5 | -16.0% | 1,357.5 | 1,649.1 | -17.7% | |
Net Revenues | 4,319.9 | 4,087.5 | 5.7% | 4,268.3 | 1.2% | 16,363.2 | 15,819.1 | 3.4% |
OPERATING REVENUE
Growth of 5.9% in the net service revenue in 2009.
Growth of 65% in data revenues and of 122% in revenues from mobile internet services IN 4Q09 over 4Q08. |
Total net revenue recorded a growth of 1.2% over 4Q08. Such variation was due to the growth in the data and VAS revenue, which offsets the reduction in the revenue from access and usage and from sales of handsets. In relation to 3Q09, the total net revenue grew 5.7%, with growth in almost all its components. The reduction in the revenue from sales of handsets in 4Q09, in relation to 4Q08, was due to the increase in the acquisition of SIM Cards only customers. "Access and usage revenue" recorded a reduction of 5.1% in relation to 4Q08 due to the increased use of bonuses given in the several campaigns to stimulate usage. When compared to 3Q09, it recorded a slight increase, as a reflex of the positive growth in the outgoing traffic. In the 2009 year-to-date, the access and usage revenue recorded an increase of 4.2%, resulting from the growth in the total outgoing traffic and in the customer base. Data revenue plus VAS grew 64.8% and 22.5% over 4Q08 and 3Q09, respectively, representing, in this last quarter, 16.0% of the Net Service Revenue. The main factors which contributed to this continued to be: increase in the Vivo Internet service customer base, represented both by sales of Internet modems and Smartphone, terminals with the corresponding data plans, in addition to the continuous growth in the consumption of interactivity services via SMS. Mobile Internet revenues grew 122.0% over 4Q08 and 28.6% over 3Q09, and became the more representative service in the data and VAS revenue (48.5%). The revenue obtained from SMS + MMS grew 45.4% and 18.9%, when compared to 4Q08 and 3Q09, respectively. It must be emphasized that in 3Q09 this revenue had recorded a growth of 30%, having accelerated its growth in 4Q09. |
OPERATING COSTS - VIVO | |||||||||
Consolidated |
Combined |
||||||||
Consolidated |
Consolidated |
Consolidated |
Accum |
||||||
R$ million | 4 Q 09 |
3 Q 09 |
Δ% |
4 Q 08 |
Δ% |
2009 |
2008 |
Δ% |
|
Personnel | (245.0) | (205.7) | 19.1% | (205.9) | 19.0% | (875.8) | (795.0) | 10.2% | |
Cost of services rendered | (1,238.9) | (1,113.4) | 11.3% | (1,062.4) | 16.6% | (4,510.2) | (4,025.2) | 12.0% | |
Leased lines | (80.7) | (75.9) | 6.3% | (77.3) | 4.4% | (313.1) | (268.0) | 16.8% | |
Interconnection | (671.7) | (565.2) | 18.8% | (571.9) | 17.5% | (2,313.2) | (2,208.5) | 4.7% | |
Rent/Insurance/Condominium fees | (93.5) | (92.8) | 0.8% | (85.4) | 9.5% | (359.6) | (291.4) | 23.4% | |
Fistel and other taxes and contributions | (220.8) | (214.4) | 3.0% | (177.7) | 24.3% | (860.1) | (670.7) | 28.2% | |
Third-party services | (171.2) | (160.0) | 7.0% | (145.9) | 17.3% | (630.1) | (553.5) | 13.8% | |
Others | (1.0) | (5.1) | -80.4% | (4.2) | -76.2% | (34.1) | (33.1) | 3.0% | |
Cost of goods sold | (491.7) | (455.2) | 8.0% | (720.6) | -31.8% | (2,011.0) | (2,473.3) | -18.7% | |
Selling expenses | (886.8) | (854.3) | 3.8% | (842.0) | 5.3% | (3,404.4) | (3,300.4) | 3.2% | |
Provision for bad debt | (40.2) | (30.2) | 33.1% | (59.5) | -32.4% | (213.2) | (312.1) | -31.7% | |
Third-party services | (697.3) | (669.6) | 4.1% | (640.0) | 9.0% | (2,565.7) | (2,390.9) | 7.3% | |
Customer loyalty and donations | (98.0) | (105.0) | -6.7% | (97.7) | 0.3% | (420.7) | (438.2) | -4.0% | |
Others | (51.3) | (49.5) | 3.6% | (44.8) | 14.5% | (204.8) | (159.2) | 28.6% | |
General & administrative expenses | (160.0) | (151.2) | 5.8% | (76.4) | 109.4% | (609.8) | (600.8) | 1.5% | |
Third-party services | (126.5) | (122.2) | 3.5% | (47.3) | 167.4% | (491.1) | (492.0) | -0.2% | |
Others | (33.5) | (29.0) | 15.5% | (29.1) | 15.1% | (118.7) | (108.8) | 9.1% | |
Other operating revenue (expenses) | 114.8 | 96.6 | 18.8% | 35.3 | 225.2% | 266.3 | 243.1 | 9.5% | |
Operating revenue | 227.7 | 196.3 | 16.0% | 135.2 | 68.4% | 642.6 | 634.0 | 1.4% | |
Operating expenses | (102.0) | (96.1) | 6.1% | (97.6) | 4.5% | (392.6) | (414.0) | -5.2% | |
Other operating revenue (expenses) | (10.9) | (3.6) | 202.8% | (2.3) | 373.9% | 16.3 | 23.1 | -29.4% | |
Total costs before depreciation / amortization | (2,907.6) | (2,683.2) | 8.4% | (2,872.0) | 1.2% | (11,144.9) | (10,951.6) | 1.8% | |
Depreciation and amortization | (833.6) | (797.1) | 4.6% | (805.8) | 3.4% | (3,257.5) | (3,030.5) | 7.5% | |
Total operating costs | (3,741.2) | (3,480.3) | 7.5% | (3,677.8) | 1.7% | (14,402.4) | (13,982.1) | 3.0% |
OPERATING COSTS
Efficiency in Cost control contributes to Profitability increase. |
The total operating costs, excluding depreciation and amortization expenses, totaled R$ 2,907.6 million in 4Q09, recording an increase of 1.2% and of 8.4% in the comparison with 4Q08 and 3Q09, respectively. Such increase is due to the commercial activity in the period. When compared to 2008, the operating costs recorded an increase of only 1.8%, coming to R$11,144.9 million in 2009, as a result of the optimum allocation of funds and of the continuous processes improvement. |
Commercial efficiency maintained. |
The cost of services rendered in 4Q09 increased by 16.6% over 4Q08, as a result of the 24.3% increase in the costs of Fistel Fee and other taxes due to the growth of the customer base and the increase in interconnection expenses. When compared to 3Q09 the increase is of 11.3%, due to higher interconnection expenses. In the 2009 year-to-date, the services cost increased by 12.0% over the same period of 2008, reflecting the increase in Fistel Fee and interconnection expenses. The cost of goods sold recorded a reduction of 31.8% in the comparison between 4Q09 and 4Q08, even considering the increase in the customer base between the periods. This is partially due to the increase in sales of SIM Cards. In comparison with 3Q09, there was an increase of 8.0%, as a result of higher sales activity. |
In the 4Q09, the selling expenses increased by 5.3% in relation to 4Q08. This increase is related to higher expenses with third-party services, such as sales commissions and support, due to a higher number of net additions with higher mix of postpaid and data, partially offset by the reduction in outsourced labor expenses, due to the internalization of 2,440 employees at the end of 4Q09, and to the reduction in the Provision for Doubtful Accounts. When compared to 3Q09 selling expenses grew 3.8%, due to the increase in the expenses with Provision for Doubtful Accounts and third-party services, especially commissions and Sales support, partially offset by the reduction in outsourced labor expenses, as explained above. |
|
|
The Provision for Doubtful Accounts in 4Q09 showed a reduction of 32.4% in relation to 4Q08. The amount of R$ 40.2 million corresponds to 0.7% of the total gross revenue, 0.3 percentage points lower than 4Q08 (1.0%). In comparison with 3Q09, the growth was of 33.1%, up 0.2 percentage points in relation to the gross revenue. In 2009 year-to-date, the provision for doubtful accounts recorded a reduction of 31.7%, corresponding to 0.9% of the gross revenue, 0.5 percentage points down in relation to the same period of the previous year. Vivo has continued with its collection actions and strict credit granting criteria, which have maintained this item under control. |
|
The general and administrative expenses grew 109.4% in 4Q09 in relation to 4Q08, as a result of non-recurring positive effects related to technical-administrative services, as well as settlements with suppliers which were recorded in 4Q08. In the comparison with 3Q09, there was an increase of 5.8%, reflecting the increased expenses with third-party services and others. In the 2009 year-to-date, general and administrative expenses recorded a growth of 1.5% in relation to the same period of 2008, totaling R$ 609.8 million. |
Other Operating Revenues/Expenses recorded revenue of R$ 114.8 million. The comparison with 4Q08 and 3Q09 presents an increase in the revenue from recovered expenses, especially taxes. As happened in 3Q09, a positive impact was recorded in 4Q09, due to the non-recurring recovery of taxes, among other effects. Due to the elimination of “Non-operating revenue/expenses” provided for in Law nº 11.941/09, the amount of R$ 29.4 million was reclassified to “Other operating revenue (expenses)” in the 2008 accumulated income statement. |
EBITDA
EBITDA margin in the 4Q09 of 32.7%, and of 31.9% in 2009. |
The EBITDA (earnings before interests, taxes, depreciation and amortization) in 4Q09 was R$ 1,412.3 million, an increase of 1.1% in relation to 4Q08, with an EBITDA Margin of 32.7%. When compared to 3Q09, the EBITDA recorded a growth of 0.6%. The result recorded in 4Q09 reflects the continued growth in service revenue, combined with efficiency in the costs control, mainly due to the continuous improvement of the operating processes. |
DEPRECIATION AND AMORTIZATION
|
Depreciation and amortization expenses recorded an increase of 3.4% in 4Q09 over 4Q08, and of 4.6% over 3Q09, due to the investments in the period. |
FINANCIAL REVENUES (EXPENSES) - VIVO | |||||||||
Consolidated | Combined | ||||||||
Consolidated | Consolidated | Consolidated | Accum | ||||||
R$ million | 4 Q 09 | 3 Q 09 | Δ% | 4 Q 08 | Δ% | 2009 | 2008 | Δ% | |
Financial Revenues | 22.5 | 45.0 | -50.0% | 65.2 | -65.5% | 209.1 | 330.3 | -36.7% | |
Other financial revenues | 45.9 | 54.7 | -16.1% | 90.5 | -49.3% | 251.6 | 371.8 | -32.3% | |
(-) Pis/Cofins taxes on financial revenues | (23.4) | (9.7) | 141.2% | (25.3) | -7.5% | (42.5) | (41.5) | 2.4% | |
Financial Expenses | (139.8) | (168.3) | -16.9% | (312.7) | -55.3% | (702.9) | (871.0) | -19.3% | |
Other financial expenses | (129.4) | (151.4) | -14.5% | (236.4) | -45.3% | (616.1) | (547.3) | 12.6% | |
Gains (Losses) with derivatives transactions | (10.4) | (16.9) | -38.5% | (76.3) | -86.4% | (86.8) | (323.7) | -73.2% | |
Exchange rate variation / Monetary variation | (19.6) | 32.5 | n.a. | (35.3) | -44.5% | 6.6 | (79.1) | n.a. | |
Net Financial Income | (136.9) | (90.8) | 50.8% | (282.8) | -51.6% | (487.2) | (619.8) | -21.4% |
Drop of 51.6% in net financial expenses in comparison with 4Q08. |
Vivo’s net financial expenses increased by R$ 46.1 million in the comparison of 4Q09 over 3Q09. This increase is mainly explained by the additional expenses resulting from a higher distribution of interest on the own capital in the period, which is levied by Pis/Cofins, and from the booking of a provision for the expense of R$ 24.6 million referring to the adjustment to present value of the FAS 143 (updating of sites disassemble costs), partially offset by a reduction in the effective interest rate in the period (2.09% in 4Q09 and 2.15% in 3Q09). When compared to 4Q08, Vivo’s net financial expenses in 4Q09 decreased by R$ 145.9 million, mainly due to the recognition of the extraordinary expense arising from the financial charges related to the 3G licenses in 4Q08, and the drop in the effective interest rate (2.09% in 4Q09 and 3.26% in 4Q08). In the comparison between 2009 and 2008 year-to-date, Vivo’s financial expenses decreased by R$ 132.6 million. Such decrease is a result, mainly, of the extraordinary effects occurred in 2008, such as financial expenses with the 3G licenses, less cash balance invested, generating a lower financial revenue and lower indebtedness throughout year 2009, added by lower effective interest rate in 2009 (9.88% in 2009 and 12.38% in 2008). |
LOANS AND FINANCING - VIVO | ||||||
CURRENCY | ||||||
Lenders (R$ million) | R$ | URTJLP * | UMBND ** | US$ | Yen | Total |
Structured Operations(1) | 587.5 | 1,470.1 | 4.3 | 642.6 | - | 2,704.5 |
Debentures | 2,132.7 | - | - | - | - | 2,132.7 |
Resolution 2770 | 175.6 | - | - | 93.4 | 26.5 | 295.5 |
Others | - | - | - | 0.2 | - | 0.2 |
Adjust "Law 11.638/07" | 1.6 | - | - | (5.6) | - | (4.0) |
Issue Costs | (4.4) | - | - | - | - | (4.4) |
Total | 2,893.0 | 1,470.1 | 4.3 | 730.6 | 26.5 | 5,124.5 |
Exchange rate used | 1.000000 | 1.974080 | 0.034021 | 1.741200 | 0.018809 | |
Payment Schedule | ||||||
2010 | 496.4 | 333.0 | 2.7 | 122.6 | - | 954.7 |
As from 2010 | 2,396.6 | 1,137.1 | 1.6 | 608.0 | 26.5 | 4,169.8 |
Total | 2,893.0 | 1,470.1 | 4.3 | 730.6 | 26.5 | 5,124.5 |
(1) - Structured operations along with development banks for investments: National Bank for Economic and Social Development (BNDES), Bank of the Northeast (BNB) and European Bank of Investments (BEI).
NET DEBT - VIVO | |||
Consolidated | |||
Dec 31, 09 | Sep 30, 09 | Dec 31, 08 | |
Short Term | 954.7 | 1,645.5 | 3,119.8 |
Long Term | 4,169.8 | 3,521.8 | 4,883.3 |
Total debt | 5,124.5 | 5,167.3 | 8,003.1 |
Cash and cash equivalents | (1,349.1) | (946.0) | (2,271.7) |
Derivatives | 10.6 | (14.3) | (429.3) |
Net Debt | 3,786.0 | 4,207.0 | 5,302.1 |
(*) BNDES long term interest rate unit | |||
(**) UMBND - prepared by the BNDES, it is a basket of foreign currencies unit, US dollar predominant, considered as US$ and its wholly-owned subsidiaries. |
Net Debt of R$3,786 million at the end of 2009.
Debt profile improvement (81.4% at long term) |
The Company recorded a debt of R$ 5,124.5 million as of December 31, 2009 (R$ 8,003.1 million as of December 31, 2008), of which 14.9% was denominated in foreign currency (UMBND, US$ and YEN), 99.8% of which being hedged. The indebtedness recorded in the 4Q09 was offset by cash and financial investments (R$ 1,349.1 million) and by derivative assets and liabilities (R$ 10.6 million payable), resulting in a net debt of R$3,786.0 million (R$ 5,302.1 million at December 31, 2008). The last portion of the credit facility granted by the BNB to the Company was released in this quarter, in the amount of R$ 134.8 million, and in October the company carried out the 4th issue of simple debentures, in the amount of R$ 810.0 million. The basic offering was of R$600 million, added by R$210 million by reason of the full exercise of the additional debentures option and of the supplementary lot option. Such issue was used for settlement of the 6th issue of Promissory Notes, in the amount of R$511.8 million (R$500.0 million of principal and R$ 11.8 million of interest), and for injection to the working capital of the company. Also in 4Q09, Vivo paid the outstanding balance of the financing of the 3G licenses, in the amount of R$163.8 million. The amount paid in 4Q09, added by the payments effected in 3Q09, settled 100% of the debt. In the 4Q09, the gross debt remained stable in relation to 3Q09. As for the debt profile, there was a considerable improvement, once now 81.4% of the debt is at long term and 18.6% at short term (in 3Q09, 68.2% was at long term and 31.8% at short term). In the comparison of 4Q09 over 3Q09, Vivo’s net debt dropped by R$ 421.0 million, as a result of the strong operating cash generation in the period and a lower cost of debt. |
|
The net debt in 4Q09, in relation to 4Q08, recorded a drop of R$1,516.1 million (R$3,786.0 million in 4Q09 and R$5,302.1 million in 4Q08). Such decrease is a result of another year of strong and consistent operating cash generation, more than sufficient to cover the CAPEX disbursements during year 2009, the payment of interest on own capital and dividends in December 2009 referring to fiscal year 2008, and the cost of debt. |
Net Profit of R$ 857.5 million in 2009. |
The consolidated Net Profit of R$ 857.5 million in 2009 represents an increase of 120.0% in relation to 2008, reflecting the better operational and financial performance. In the 4Q09, the net profit recorded R$221.6 million remaining stable in comparison with the 4Q08.
|
Allocation of Interest on the Own Capital and Dividends |
The Management of the Company proposed the payment of dividends at the rate of R$ 2.049299159273 per share, under equal conditions for common and preferred shares, in the total net amount of R$ 818,879,660.08. |
Shareholding Structure and Capital Stock Composition
CAPITAL STOCK OF VIVO PARTICIPAÇÕES S.A. on December 31, 2009 | ||||||
Shareholders | Common Shares | Preferred Shares | TOTAL | |||
Brasilcel, N.V. | 52,731,031 | 38.4% | 91,087,513 | 34.6% | 143,818,544 | 35.9% |
Portelcom Participações S.A. | 52,116,302 | 38.0% | 24,669,191 | 9.4% | 76,785,493 | 19.2% |
TBS Celular Participações LTDA | 17,204,638 | 12.5% | 291,449 | 0.1% | 17,496,087 | 4.4% |
Controlling Shareholder Group | 122,051,971 | 88.9% | 116,048,153 | 44.1% | 238,100,124 | 59.4% |
Treasury shares | 0 | 0.0% | 1,123,725 | 0.4% | 1,123,725 | 0.3% |
Others shareholders | 15,217,217 | 11.1% | 146,272,761 | 55.5% | 161,489,978 | 40.3% |
TOTAL | 137,269,188 | 100.0% | 262,320,914 | 100.0% | 400,713,827 | 100.0% |
Merger of Telemig Celular S.A.
|
Vivo communicated to its shareholders and to the market in general that, on December 03, 2009, it filed a request with the National Telecommunications Agency – Anatel for prior approval of the merger of Telemig Celular S.A. into Vivo Participações S.A., in conformity with the provisions set forth in Law no. 9472/97 – General Telecommunications Law, in the Regulation for Verification of Share Control and of Transfer of Share Control in Telecommunication Service Providers, as approved by Resolution no. 101/1999, as well as in other applicable regulatory instruments. |
Corporate Restructuring.
Merger of Telemig Celular Participações S.A. |
Vivo Participações S.A. communicated, on November 19, 2009, that a Corporate Restructuring was carried out among its controlling Companies, resulting in the merger, into Portelcom Participações S.A. (“Portelcom”), of companies Tagilo Participações Ltda., Sudestecel Participações Ltda. and Avista Participações Ltda., whereby the merged companies were extinguished. It has further informed that Vivo Brasil Comunicações Ltda., which was previously 100% controlled by Brasilcel N.V., was also merged into Portelcom. |
CONSOLIDATED INCOME STATEMENTS - VIVO PARTICIPAÇÕES S.A. | |||||||||
Consolidated | Consolidated | Consolidated | Consolidated | Combined | |||||
Accum | |||||||||
R$ million | 4 Q 09 | 3 Q 09 | Δ% | 4 Q 08 | Δ% | 2009 | 2008 | Δ% | |
Gross Revenues | 6,108.5 | 5,679.6 | 7.6% | 6,002.9 | 1.8% | 22,871.6 | 22,211.7 | 3.0% | |
Gross service revenues | 5,232.0 | 5,026.5 | 4.1% | 5,055.9 | 3.5% | 19,939.4 | 18,925.5 | 5.4% | |
Deductions – Taxes and others | (1,314.7) | (1,237.8) | 6.2% | (1,267.1) | 3.8% | (4,933.7) | (4,755.5) | 3.7% | |
Gross handset revenues | 876.5 | 653.1 | 34.2% | 947.0 | -7.4% | 2,932.2 | 3,286.2 | -10.8% | |
Deductions – Taxes and others | (473.9) | (354.3) | 33.8% | (467.5) | 1.4% | (1,574.7) | (1,637.1) | -3.8% | |
Net Revenues | 4,319.9 | 4,087.5 | 5.7% | 4,268.3 | 1.2% | 16,363.2 | 15,819.1 | 3.4% | |
Net service revenues | 3,917.3 | 3,788.7 | 3.4% | 3,788.8 | 3.4% | 15,005.7 | 14,170.0 | 5.9% | |
Access and Usage | 1,711.9 | 1,709.6 | 0.1% | 1,804.2 | -5.1% | 6,768.6 | 6,494.0 | 4.2% | |
Network usage | 1,540.2 | 1,531.5 | 0.6% | 1,562.5 | -1.4% | 6,053.0 | 6,039.7 | 0.2% | |
Data Revenues plus VAS | 625.3 | 510.5 | 22.5% | 379.4 | 64.8% | 2,035.4 | 1,438.9 | 41.5% | |
SMS + MMS | 281.6 | 236.8 | 18.9% | 193.7 | 45.4% | 975.4 | 725.9 | 34.4% | |
Internet Revenues | 303.3 | 235.8 | 28.6% | 136.6 | 122.0% | 894.1 | 507.3 | 76.2% | |
Other Data Revenues plus VAS | 40.4 | 37.9 | 6.6% | 49.0 | -17.6% | 165.9 | 205.7 | -19.3% | |
Other services | 39.9 | 37.1 | 7.5% | 42.7 | -6.6% | 148.7 | 197.4 | -24.7% | |
Net handset revenues | 402.6 | 298.8 | 34.7% | 479.5 | -16.0% | 1,357.5 | 1,649.1 | -17.7% | |
Operating Costs | (2,907.6) | (2,683.2) | 8.4% | (2,872.0) | 1.2% | (11,144.9) | (10,951.6) | 1.8% | |
Personnel | (245.0) | (205.7) | 19.1% | (205.9) | 19.0% | (875.8) | (795.0) | 10.2% | |
Cost of services rendered | (1,238.9) | (1,113.4) | 11.3% | (1,062.4) | 16.6% | (4,510.2) | (4,025.2) | 12.0% | |
Leased lines | (80.7) | (75.9) | 6.3% | (77.3) | 4.4% | (313.1) | (268.0) | 16.8% | |
Interconnection | (671.7) | (565.2) | 18.8% | (571.9) | 17.5% | (2,313.2) | (2,208.5) | 4.7% | |
Rent/Insurance/Condominium fees | (93.5) | (92.8) | 0.8% | (85.4) | 9.5% | (359.6) | (291.4) | 23.4% | |
Fistel and other taxes and contributions | (220.8) | (214.4) | 3.0% | (177.7) | 24.3% | (860.1) | (670.7) | 28.2% | |
Third-party services | (171.2) | (160.0) | 7.0% | (145.9) | 17.3% | (630.1) | (553.5) | 13.8% | |
Others | (1.0) | (5.1) | -80.4% | (4.2) | -76.2% | (34.1) | (33.1) | 3.0% | |
Cost of handsets | (491.7) | (455.2) | 8.0% | (720.6) | -31.8% | (2,011.0) | (2,473.3) | -18.7% | |
Selling expenses | (886.8) | (854.3) | 3.8% | (842.0) | 5.3% | (3,404.4) | (3,300.4) | 3.2% | |
Provision for bad debt | (40.2) | (30.2) | 33.1% | (59.5) | -32.4% | (213.2) | (312.1) | -31.7% | |
Third-party services | (697.3) | (669.6) | 4.1% | (640.0) | 9.0% | (2,565.7) | (2,390.9) | 7.3% | |
Costumer loyalty and donations | (98.0) | (105.0) | -6.7% | (97.7) | 0.3% | (420.7) | (438.2) | -4.0% | |
Others | (51.3) | (49.5) | 3.6% | (44.8) | 14.5% | (204.8) | (159.2) | 28.6% | |
General & administrative expenses | (160.0) | (151.2) | 5.8% | (76.4) | 109.4% | (609.8) | (600.8) | 1.5% | |
Third-party services | (126.5) | (122.2) | 3.5% | (47.3) | 167.4% | (491.1) | (492.0) | -0.2% | |
Others | (33.5) | (29.0) | 15.5% | (29.1) | 15.1% | (118.7) | (108.8) | 9.1% | |
Other operating revenue (expenses) | 114.8 | 96.6 | 18.8% | 35.3 | 225.2% | 266.3 | 243.1 | 9.5% | |
Operating revenue | 227.7 | 196.3 | 16.0% | 135.2 | 68.4% | 642.6 | 634.0 | 1.4% | |
Operating expenses | (102.0) | (96.1) | 6.1% | (97.6) | 4.5% | (392.6) | (414.0) | -5.2% | |
Other operating revenue (expenses) | (10.9) | (3.6) | 202.8% | (2.3) | 373.9% | 16.3 | 23.1 | -29.4% | |
EBITDA | 1,412.3 | 1,404.3 | 0.6% | 1,396.3 | 1.1% | 5,218.3 | 4,867.5 | 7.2% | |
Margin % | 32.7% | 34.4% | -1.7 p.p. | 32.7% | 0.0 p.p. | 31.9% | 30.8% | 1.1 p.p. | |
Depreciation and Amortization | (833.6) | (797.1) | 4.6% | (805.8) | 3.4% | (3,257.5) | (3,030.5) | 7.5% | |
EBIT | 578.7 | 607.2 | -4.7% | 590.5 | -2.0% | 1,960.8 | 1,837.0 | 6.7% | |
Net Financial Income | (136.9) | (90.8) | 50.8% | (282.8) | -51.6% | (487.2) | (619.8) | -21.4% | |
Financial Revenues | 22.5 | 45.0 | -50.0% | 65.2 | -65.5% | 209.1 | 330.3 | -36.7% | |
Other financial revenues | 45.9 | 54.7 | -16.1% | 90.5 | -49.3% | 251.6 | 371.8 | -32.3% | |
(-) Pis/Cofins taxes on financial revenues | (23.4) | (9.7) | 141.2% | (25.3) | -7.5% | (42.5) | (41.5) | 2.4% | |
Financial Expenses | (139.8) | (168.3) | -16.9% | (312.7) | -55.3% | (702.9) | (871.0) | -19.3% | |
Other financial expenses | (129.4) | (151.4) | -14.5% | (236.4) | -45.3% | (616.1) | (547.3) | 12.6% | |
Gains (Losses) with derivatives transactions | (10.4) | (16.9) | -38.5% | (76.3) | -86.4% | (86.8) | (323.7) | -73.2% | |
Exchange rate variation / Monetary variation | (19.6) | 32.5 | n.a. | (35.3) | -44.5% | 6.6 | (79.1) | n.a. | |
Taxes | (220.2) | (176.4) | 24.8% | (71.2) | 209.3% | (590.5) | (574.2) | 2.8% | |
Minority Interest | 0.0 | 0.0 | n.a. | (14.4) | -100.0% | (25.6) | 0.0 | n.a. | |
Net Income | 221.6 | 340.0 | -34.8% | 222.1 | -0.2% | 857.5 | 389.7 | 120.0% |
CONSOLIDATED BALANCE SHEET - VIVO | ||||
R$ million | Consolidated | Consolidated | ||
ASSETS | Dec 31. 09 | Dec 31. 08 | Δ% | |
Current Assets | 6,822.9 | 8,927.3 | -23.6% | |
Cash and equivalents cash | 1,258.6 | 2,182.9 | -42.3% | |
Temporary cash investments (collateral) | 39.2 | 41.5 | -5.5% | |
Net accounts receivable | 2,546.8 | 2,578.5 | -1.2% | |
Inventory | 423.6 | 778.7 | -45.6% | |
Deferred and recoverable taxes | 1,982.7 | 2,358.7 | -15.9% | |
Derivatives transactions | 14.7 | 347.4 | -95.8% | |
Prepaid Expenses | 311.3 | 316.6 | -1.7% | |
Other current assets | 246.0 | 323.0 | -23.8% | |
Non- Current Assets | 15,194.2 | 14,869.5 | 2.2% | |
Long Term Assets: | ||||
Temporary cash investments (as collateral) | 51.3 | 47.3 | 8.5% | |
Deferred and recoverable taxes | 2,770.9 | 2,732.0 | 1.4% | |
Derivatives transactions | 137.1 | 285.3 | -51.9% | |
Prepaid Expenses | 74.4 | 80.2 | -7.2% | |
Other long term assets | 118.5 | 46.3 | 155.9% | |
Investment | 0.1 | 0.1 | 0.0% | |
Plant, property and equipment | 6,445.1 | 7,183.9 | -10.3% | |
Net intangible assets | 5,566.9 | 4,439.0 | 25.4% | |
Deferred assets | 29.9 | 55.4 | -46.0% | |
Total Assets | 22,017.1 | 23,796.8 | -7.5% | |
LIABILITIES | ||||
Current Liabilities | 6,933.1 | 9,379.8 | -26.1% | |
Personnel, tax and benefits | 161.3 | 185.5 | -13.0% | |
Suppliers and Consignment | 3,053.6 | 3,726.3 | -18.1% | |
Taxes, fees and contributions | 892.9 | 785.6 | 13.7% | |
Loans and financing | 688.4 | 2,007.0 | -65.7% | |
Debentures | 266.3 | 1,112.8 | -76.1% | |
Interest on own capital and dividends | 934.4 | 545.9 | 71.2% | |
Contingencies provision | 70.4 | 91.1 | -22.7% | |
Derivatives transactions | 31.0 | 105.4 | -70.6% | |
Other current liabilities | 834.8 | 820.2 | 1.8% | |
Non-Current Liabilities | 4,893.2 | 5,561.7 | -12.0% | |
Long Term Liabilities: | ||||
Taxes, fees and contributions | 317.1 | 275.3 | 15.2% | |
Loans and financing | 2,306.6 | 3,826.4 | -39.7% | |
Debentures | 1,863.2 | 1,056.9 | 76.3% | |
Contingencies provision | 98.4 | 102.9 | -4.4% | |
Derivatives transactions | 131.4 | 98.0 | 34.1% | |
Other long term liabilities | 176.5 | 202.2 | -12.7% | |
Minority interest | 0.0 | 587.8 | -100.0% | |
Shareholder's Equity | 10,190.8 | 8,267.5 | 23.3% | |
Total Liabilities and Shareholder's Equity | 22,017.1 | 23,796.8 | -7.5% |
Indirect Cash Flow Statement (CONSOLIDATED/COMBINED) | |||||||||
In million of R$ | Consolidated | Consolidated | Combined | ||||||
CASH FLOW GENERATED FROM OPERATING ACTIVITIES | 4Q 09 | 3Q 09 | 4Q 08 | Accum 2009 | Accum 2008 | ||||
Net profit for the period | 221.6 | 340.0 | 222.1 | 857.5 | 643.0 | ||||
Adjustments for reconciliation of the net profit (loss) of the | |||||||||
period with funds generated from operating activities | |||||||||
Minority interest | - | - | 14.4 | 25.6 | - | ||||
Depreciation and amortization | 833.6 | 797.1 | 805.8 | 3,257.5 | 3,030.5 | ||||
Residual cost of written-off fixed assets | 2.4 | 1.1 | 3.8 | 3.9 | 34.1 | ||||
Provisions (reversals) for inventory losses | 9.6 | (10.1) | 4.6 | (6.7) | (13.2) | ||||
Inventory written-off items | 0.9 | 1.8 | 1.3 | 3.1 | 3.3 | ||||
Provisions for disposal of assets | (39.0) | (1.9) | (45.8) | (41.7) | (7.6) | ||||
Provisions (reversals) for suppliers | 6.5 | 46.4 | 48.8 | (12.6) | (159.6) | ||||
Losses in forward and swap contracts | 53.0 | 37.5 | (557.9) | 453.8 | (515.4) | ||||
Provisions (reversals) for taxes and contributions | (17.5) | 4.8 | (7.7) | 51.0 | (167.7) | ||||
Losses in loans, financing and debentures | 71.8 | 111.2 | 908.2 | 235.1 | 1,327.1 | ||||
Monetary and exchange variations | (21.7) | (0.7) | 17.5 | (12.9) | 25.9 | ||||
Provisions for doubtful accounts | 40.2 | 30.2 | 59.5 | 213.2 | 312.1 | ||||
Provisions for contingencies | 33.4 | 31.5 | 40.4 | 134.7 | 141.0 | ||||
Provisions (reversals) for customer retention program | 0.1 | (40.7) | 8.6 | (52.0) | 28.9 | ||||
Deferred income tax | 201.9 | 51.6 | 200.0 | 348.2 | 497.3 | ||||
Adhesion to ICMS convention agreement | - | - | - | - | (251.6) | ||||
Post-employment benefit plans | 1.5 | 0.6 | 3.5 | 3.3 | 4.3 | ||||
Increase in operating assets | |||||||||
Accounts receivable | (53.8) | (227.9) | (232.3) | (181.5) | (479.0) | ||||
Inventory | 54.5 | (59.3) | (77.7) | 358.7 | (356.9) | ||||
Deferred and recoverable taxes | 2.8 | (127.4) | (156.7) | (76.3) | (313.2) | ||||
Other current and non-current assets | (56.7) | 202.8 | (104.9) |
14.1 | 487.9 | ||||
Reduction in operating liabilities: | |||||||||
Labor, payroll charges and pension benefits | (13.6) | 19.2 | (9.5) | (24.1) | (22.8) | ||||
Suppliers and accounts payable | (93.6) | (185.6) | 229.3 | (754.1) | 432.6 | ||||
Taxes, duties and contributions | 29.7 | 101.0 | (55.9) | 80.2 | 523.6 | ||||
Provisions for contingencies | (43.6) | (46.3) | (45.9) | (160.3) | (162.6) | ||||
Other current and non-current liabilities | 63.8 | 91.7 | (912.3) | 101.7 | 151.4 | ||||
Cash generated from operating activities | 1,287.8 | 1,168.6 | 361.2 | 4,819.4 | 5,193.4 | ||||
CASH FLOW GENERATED FROM INVESTMENT ACTIVITIES | |||||||||
Additions to property, plant & equipment and intangible assets | (453.6) | (546.0) | (280.5) | (2,275.3) | (2,952.6) | ||||
Additions to deferred assets | - | - | (6.5) | - | (30.3) | ||||
Aplication in investments funds | - | - | (0.9) | - | (0.9) | ||||
Additions to investments | - | (2.9) | (8.3) | (2.9) | (2,785.6) | ||||
Proceeds from disposal of property, plant & equipment | 1.6 | 0.7 | 1.6 | 4.4 | 14.2 | ||||
Cash used in investment activities | (452.0) | (548.2) | (294.6) | (2,273.8) | (5,755.2) | ||||
CASH FLOW GENERATED FROM INVESTMENT ACTIVITIES | |||||||||
Funding from loans, financing and debentures | 940.1 | 677.8 | 961.6 | 1,952.5 | 3,306.8 | ||||
Repayment of loans, financing and debentures | (906.3) | (1,757.9) | (598.3) | (4,291.4) | (1,756.6) | ||||
Payments of interest on loans, financing and debentures | (148.4) | (375.1) | (151.0) | (774.9) | (446.5) | ||||
Receipts (payments) for forward contracts and swaps | (24.2) | (19.5) | (41.9) | 51.5 | (541.0) | ||||
Receipts for stock replacement - share fractions | 0.8 | 3.3 | - | 4.1 | - | ||||
Proceeds from capital increase of minority interest | - | - | 8.1 | 8.8 | 8.1 | ||||
Payments of dividends and interest on own capital | (296.4) | (0.1) | (5.0) | (419.3) | (54.2) | ||||
Receipts (payments) for stock grouping, net | (0.2) | (0.3) | 29.1 | (1.2) | 26.8 | ||||
Cash used in financing activities | (434.6) | (1,471.8) | 202.6 | (3,469.9) | 543.4 | ||||
CASH INCREASE | 401.2 | (851.4) | 269.2 | (924.3) | (18.4) | ||||
CASH | |||||||||
Initial balance | 857.4 | 1,708.8 | 1,913.7 | 2,182.9 | 2,201.3 | ||||
Final balance | 1,258.6 | 857.4 | 2,182.9 | 1,258.6 | 2,182.9 | ||||
401.2 | (851.4) | 269.2 | (924.3) | (18.4) |
CONFERENCE CALL – 4Q09
In Portuguese
Date: February 10, 2010 (Wednesday)
Time: 9:00 a.m. (Brasília time) and 06:00 a.m. (New York time)
Telephone number: (55 11) 2188-0188
Conference Call Code: VIVO
Webcast: www.vivo.com.br/ri
The conference call audio replay will be available until February 18, 2010 at telephone number (55 11) 2188-0188 - code: Vivo or in our website
In English
Date: February 10, 2010 (Wednesday)
Time: 11:00 a.m. (Brasília time) and 08:00 a.m. (New York time)
Telephone number: (+1 412) 858-4600
Conference Call Code: Vivo
Webcast: www.vivo.com.br/ir
The conference call audio replay will be available until February 18, 2010 at telephone number +1(412) 317-0088 - code: 437190# or in our website.
VIVO – Investor Relations |
Cristiane Barretto Sales
|
Av Chucri Zaidan, 860 – Morumbi – SP – 04583-110
Telephone: +55 11 7420-1172
e-mail: ir@vivo.com.br Information available in our website: http://www.vivo.com.br/ir |
This press release contains forecasts of future events. Such statements are not statements of historical fact, and merely reflect the expectations of the company's management. The terms "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "projects", "aims" and similar terms are intended to identify these statements, which obviously involve risks or uncertainties which may or may not be foreseen by the company. Accordingly, the future results of operations of the Company may differ from its current expectations, and the reader should not rely exclusively on the positions taken herein. These forecasts speak only of the date they are made, and the company does not undertake any obligation to update them in light of new information or future developments. |
GLOSSARY |
Financial Terms: CAPEX – Capital Expenditure. Technology and Services 1xRTT – (1x Radio Transmission Technology) – It is the CDMA 2000 1x technology which, pursuant to the ITU (International Telecommunication Union). and in accordance with the IMT-2000 rules is considered 3G (third generation) Technology. |
Operating indicators: Gross additions – Total of customers acquired in the period.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: February 12, 2010
VIVO PARTICIPAÇÕES S.A. |
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By: |
/S/ Ernesto Gardelliano
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Ernesto Gardelliano
Investor Relations Officer |
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.