GVT Holding SA, the Brazilian telecommunications company controlled by Vivendi (VIVEF, VIV.FR), said Wednesday it will expand into Rio de Janeiro as part of its investment of 1.73 billion Brazilian reals ($1.04 billion) planned for this year.

GVT will invest BRL400 million in Rio de Janeiro, Brazil's second-biggest city, during the next two years to reach half of the city's population. The company also plans to begin offering pay-TV services this year in the city of Sao Paulo, GVT said in an email.

The investment plan represents a 23% increase from the BRL1.4 billion spent last year.

GVT said in the same statement that revenue likely grew by 40% in 2010. Margins on earnings before interest, taxes, depreciation and amortization likely reached 40%. The company said it will announce official figures for 2010 when parent company Vivendi reports earnings on March 1.

-By Paulo Winterstein, Dow Jones Newswires; 55-11-3544-7073; paulo.winterstein@dowjones.com