Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Results3Q10
Agenda   Operating Performance   Financial Performance
A quarter highlighted by sustained revenuegrowth with increased profitability.     th ith i        d    fit bilitVivo’s co...
Vivo’s competitive advantage generates highcustomer base growth, mainly in the postpaid               growthsegment...  In...
...thus keeping a customer base even moreactive, mainly in outgoing calls...   ti      i l i    t i      ll               ...
...resulting in ARPU improvement, specially intheth outgoing ARPU...       t i     ARPU            ARPU – R$              ...
...driven by the high adoption andprofitability of data services...    Growth of 3G Plans                         Data + V...
...which combined with a better mix of additionsand efficiency in acquiring new clients increases   d ffi i      i      i ...
...thus keeping a high level of revenue growthwith i   ith increased profitability resulting in               d    fit bil...
...and strengthening the basis for a sustainablelong term growth           growth.         Gaining know-how and           ...
Agenda   Operating Performance   Financial Performance
Net Service RevenueR$ million                                                                                             ...
Data Revenue + VASR$ million             + 61.4%                        +5.1%                 19.4%          19.6%        ...
Operating Expenses*  R$ million                     Service Rendered          Goods Sold              Selling Expenses    ...
EBITDA EvolutionR$ million                     +61.4%   +3.1%     +36.8%    +14.0%    -4.5%   +5.7%   +23.7%              ...
EBITDA and Margin              gR$ million        Financial discipline maintain                                           ...
EBIT and Financial ResultR$ million                      EBIT           FINANCIAL RESULT                                  ...
Net Result and Cash FlowR$ million              Net Result                            Cash Flow                + 81%      ...
Gross and Net DebtR$ million         Gross Debt                              Net Debt                       - 17.1%       ...
CAPEXR$ million                                                           14.7%             13.0%                11.1%    ...
Investors and       Shareholders                                        Customers                       VIVO VALUES       ...
Upcoming SlideShare
Loading in …5
×

Presentation 3Q10

1,339 views

Published on

VIVO - Presentation 3Q10 Results

Published in: Investor Relations
  • Be the first to comment

  • Be the first to like this

Presentation 3Q10

  1. 1. Results3Q10
  2. 2. Agenda Operating Performance Financial Performance
  3. 3. A quarter highlighted by sustained revenuegrowth with increased profitability. th ith i d fit bilitVivo’s competitive advantage  Growth in postpaidgenerates high customer base higher than thegrowth, mainly in the postpaid average of total customer basesegment... t...resulting in ARPU  ARPU increasing byimprovement, d ii t driven b D t by Data the second consecutive quarterRevenues......which combined to a better mix which 2.8 28 2.8 28 2.5of additions and efficiency in  21% SAC reduction in relation to theacquiring customers increases previous yearthe profitability per client... p yp SAC/ARPU (months)...thus sustaining a high level  10% growth in Netof revenue growth with Service Revenue withsubstantial increase in 33.4% Margin. iprofitability. 3
  4. 4. Vivo’s competitive advantage generates highcustomer base growth, mainly in the postpaid growthsegment... Increase in 3G Promotions designed Largest own The right handset Coverage for each segment stores chain portfolio Concept stores with customized services for high-end customers +18.2% +3.1% QoQ YoY 56.0 57.7 48.9 6.4% 30.3% 2.3% 15.3% Prepaid Postpaid Postpaid Blended 4
  5. 5. ...thus keeping a customer base even moreactive, mainly in outgoing calls... ti i l i t i ll Customers MOU VOICE TRAFFIC Recharging Minutes Million of minutes % of prepaid customer base + 29.2% +53.1% + 0.9% +4.6% QoQ YoY + 4.9 p.p. 114 115 18,744 19,600 QoQ YoY 89 24 25 4.2% 10 7% 4 2% -10.7% 6.0% 5.2% 28 12,800 90 90 0.0% 47.5% 4.2% 4 2% 74 8% 74.8% 61 3Q09 2Q10 3Q10 Outgoing Incoming Outgoing Incoming Sep-09 Sep/10 5
  6. 6. ...resulting in ARPU improvement, specially intheth outgoing ARPU... t i ARPU ARPU – R$ Outgoing ARPU Evolution - 7.4% + 0.8% 27.2 25.0 25.2 Q Q QoQ YoY 11.0 -1.1% -15.5% 9.4 9.3 16.2 15.6 15.9 1.9% -1.9% 3Q09 2Q10 3Q10 Outgoing Incoming 6
  7. 7. ...driven by the high adoption andprofitability of data services... Growth of 3G Plans Data + VAS ARPU – R$ Customer Base 19% +112% 13% Data ARPU/Total ARPU 7
  8. 8. ...which combined with a better mix of additionsand efficiency in acquiring new clients increases d ffi i i i i li t ithe profitability per customer... SAC Blended* - R$ - 20.5% - 12.7% 78 Payback – SAC/ARPU 71 QoQ YoY 8 62 9 9 -17.6% -11.3% 9 7 17 7 -19.8% -22.1% 19 16 -15.8% -7.0% 17 21 18 -14.1% 5.6% 26 13 13 -2.5% -50.8% 3T09 2T10 3T10 Subsidy Advertising Comissions Lending Fistel * (70% of marketing expenses + costs of distribution channels + handset subsidy + corporate lending +Fistel)/gross additions. 8
  9. 9. ...thus keeping a high level of revenue growthwith i ith increased profitability resulting in d fit bilit lti iEBITDA and Profit growth... R$ million 3Q10 3Q09* Δ% Net Service Revenue 4,307.6 3,913.3 10.1% EBITDA 1,537.8 1,396.4 10.1% EBITDA Margin 33.4% 33.4% 0.0 p.p. Net Result 601.8 332.7 80.9% Cash Flow after investments 979.4 245.3 299.3%* The 3Q09 numbers were reclassified when applicable, according to the adoption of new accounting practices in Brazil (CPCs). 9
  10. 10. ...and strengthening the basis for a sustainablelong term growth growth. Gaining know-how and ...and universalizing innovating in p g products and services… the 3G coverage FINANCIAL SERVICES Co-Branded Card Vivo Itaúcard Mobile Checking Account Bradesco Santander Broker Mobile Payments with MasterCard, Itaú and RedeCard VIVO S VIVO’S SERVICE STORE MOBILE LEARNING Language courses through the mobile phone 10
  11. 11. Agenda Operating Performance Financial Performance
  12. 12. Net Service RevenueR$ million YoY Growth % + 10 1% 10.1% + 4.3% 4,308 4,130 3,913 843 522 802 1,532 1,537 1 537 1,490 3Q 10/09 Growth R$ million 1,783 1,806 1 806 1,889 +61.4% 3Q09 2Q10 3Q10 +5.9% Outgoing Voice Data + VAS +0.4% Interconnection In order to simplify the analysis the chart does not include ‘Other Revenues’. Other Revenues 12
  13. 13. Data Revenue + VASR$ million + 61.4% +5.1% 19.4% 19.6% QoQ YoY 843 13.3% 802 Others 100 Others 3.7% 10.5% 97 12% 522 SMS+MMS Vivo Internet 7.6% 92.3% 34% 425 457 91 Vivo Internet 238 54% SMS + MMS 1.7% 47.4% 281 286 194 ...and currently represents the largest proportion 3Q09 2Q10 3Q10 of data revenue revenue. % Net Service Revenue The Internet Revenue grew above 90% g for the 4th consecutive quarter 13
  14. 14. Operating Expenses* R$ million Service Rendered Goods Sold Selling Expenses + 15% + 3% - 5% + 6% + 10% - 6% 925 1,038 , 1,064 954 847 896 452 394 431 General and H. R. Fistel, Fust, Funtel Administrative + 10% + 15% + 37% + 6% + 6% - 2% 266 281 269 264 154 167 177 206 240* Excluding Depreciation. 14
  15. 15. EBITDA EvolutionR$ million +61.4% +3.1% +36.8% +14.0% -4.5% +5.7% +23.7% 113 (76) 321 (163) 20 (48) (26) 1,538 1,396 +10.1% 3Q09 Data + Voice + H. R. Service Goods Selling Others 3Q10 VAS others Rendered Sold Expenses Revenues Costs C 15
  16. 16. EBITDA and Margin gR$ million Financial discipline maintain QoQ YoY expenses growth under control 14.5% 10.1% EBITDA EBITDA Margin • 3Q09 was benefited by non Q y recurrent effects in the amount of R$78 million 16
  17. 17. EBIT and Financial ResultR$ million EBIT FINANCIAL RESULT 3Q09 2Q10 3Q10 + 62.3% 982 (64) (98) (101) 605 503 3Q09 2Q10 3Q10 17
  18. 18. Net Result and Cash FlowR$ million Net Result Cash Flow + 81% + 155% Profit Evolution fi l i 235 35 (142) 602 141 333 +81% 18
  19. 19. Gross and Net DebtR$ million Gross Debt Net Debt - 17.1% - 43.2% - 6.6% -28.1% 5,167.3 5 167 3 4,245.1 4 245 1 4,588.4 4,284.5 3,355.3 68% 2,411.8 78% 81% 32% 22% 19% 3Q09 2Q10 3Q10 3Q09 2Q10 3Q10 Short Term Long Term Credit Rating: ‘brAAA’ 19
  20. 20. CAPEXR$ million 14.7% 13.0% 11.1% 675.2 541.5 489.2 117.4 108.7 90.1 105.1 105.3 119.7 467.7 327.5 264.4 3Q09 2Q10 3Q10 Network Technology Others % Capex/Net Revenue 20
  21. 21. Investors and Shareholders Customers VIVO VALUES VIVO VALUES Trust Enthusiasm Interaction Quality SimplicityEmployees and Sustainability Partners Businesses B i 21

×