SAO PAULO, Brazil, Jan. 31 /PRNewswire-FirstCall/ — Net Servicos de
Comunicacao S.A. (Bovespa: NETC3 and NETC4; Nasdaq: NETC; and Latibex: XNET),
announces today its results for the fourth quarter of 2007 (”4Q07″) and fiscal
year 2007.
The pay TV subscriber base reached 2,475,000 at the end of 2007, expanding
by 16% from 2,142,000 subscribers in the previous year; the broadband
subscriber base increased to 1,424,000, growing by 65% from 864,000; and the
voice subscriber base totaled 567,000, expanding by 212% (all figures in
relation to yearend 2006).
Net Revenue climbed by 28.0% to R$ 2,901.9 million, compared with R$
2,266.7 million in 2006. Average Revenue per User (ARPU) grew 9% in the year
to R$ 131.34, from R$ 120.51 in 2006. The main drivers of these increases were
the growth in the subscriber base and the Company’s ability to sell to its
clients not only more products, but also products with higher value added.
Operating Costs in 2007 stood at R$ 1,379.7 million, growing by 30.7% in
relation the R$ 1,056.0 million recorded the year before. Programming Costs
increased by 20.1% in the year, mainly due to the higher number of Pay TV
subscribers, while Other Operating Costs, comprised mainly of costs with the
call center and the contracting of bandwidth for Internet service (link), rose
by 75.9% in the period.
Selling, general and administrative expenses (SG&A) totaled R$ 735.6
million in 2007, 35.9% higher than the R$ 541.4 million recorded in 2006.
Selling Expenses were up 23.5%, driven by higher expenses with sales
commissions because of the higher sales volume in the year, as well as higher
expenses with advertising campaigns. General and Administrative Expenses
increased by 17.4%.
Consolidated EBITDA was R$ 804.3 million in 2007, up 25.9% in relation to
the R$ 638.7 million reported in 2006. EBITDA margin remained stable at 28%,
within the range considered adequate by the company, given the Company’s
execution of a strategy of strong organic growth in a highly competitive
scenario.
Conference Call - 02/01/2008
English:
11:00 AM (EST)
Phone #: +1 (973) 935-8893
ID Code: 33038036
Portuguese:
10:00 AM (EST)
Phone #: +55 (11) 2188-0188
ID Code: Net
Live Webcast and earnings release: http://www.ir.netservicos.com.br
SOURCE Net Servicos de Comunicacao S.A.