VIV Telefonica Brasil SA

SAO PAOLO, Brazil, July 20 /PRNewswire-FirstCall/ -- VIVO Participacoes S.A. (VIVO) (Bovespa: VIVO3 [ON = Common Shares] / VIVO4 [PN = Preferred Shares]) (NYSE:VIV), announced its consolidated results for the second quarter of 2007 (2Q07). Vivo's 2Q07 reflect the results of the work developed towards resumption of profitable growth goal. The company's decision to offer CDMA/EV-DO and GSM/EDGE technologies to its customers enhances the strategy adopted in the implementation of the new network and the adequate time for repositioning Vivo with its campaign "Vivo. Sinal de Qualidade". R$ million 2Q07 1Q07 2Q06 Net Revenue 3,021.0 2,850.8 2,598.3 Total Operating (2,386.8) (2,093.8) (2,292.0) Costs EBITDA 634.2 757.0 306.3 EBITDA Margin (%) 21.0 % 26.6 % 11.8 % Net Result (112.8) (19.3) (493.1) Number of customers (thousand) 30,240 29,030 28,525 Market share 37.3 % 37.4 % 40.4 % Net Additions (thousand) 1,210 (23) (1,613) Increase in the customer base, with the addition of 1,210 thousand customers in the quarter, with emphasis on the Mothers' Day and Valentines' Day campaigns; GSM has already exceeded 3.3 million handsets sold; Service Revenue of R$2,647.8 million and EBITDA of R$ 634.2 million in 2Q07, an increase of 107.0% over 2Q06; EBITDA Margin of 21.0% in 2Q07 is 9.2 percentile points higher than the margin recorded in the same quarter of last year. By eliminating the effects of termination of the partial Bill&Keep system, the EBITDA margin would be 23.5% compared to 16.2% recorded in 2Q06; The provision for bad debt was R$ 101.2 million in the quarter, representing 2.3% of the gross revenue, a reduction of 70.1% in relation to 2Q06; The operating cash flow plus the change in working capital increased R$434.3 million in the year; The net debt in the amount of R$3,336.3 million remained almost stable in 2Q07 and represents a reduction of 23.0% in relation to the same period of last year; To download the complete version of the Company's earnings release, please visit our website: http://www.vivo.com.br/ir DATASOURCE: VIVO Participacoes S.A. CONTACT: Investor Relations of VIVO Participacoes S.A., Web site: http://www.vivo.com.br/ir

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