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3Q08 Results

3Q08 Results. COVERAGE. MAIN CITIES. Current (79) São Paulo Rio de Janeiro Belo Horizonte Recife Brasília Manaus Curitiba Florianópolis Porto Alegre. Awaiting approval (14) Big TV (12) Guarulhos Ponta Grossa Maceió Joao Pessoa ESC 90 (2) Vitoria Vila Velha.

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3Q08 Results

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  1. 3Q08 Results

  2. COVERAGE MAIN CITIES Current (79) São Paulo Rio de Janeiro Belo Horizonte Recife Brasília Manaus Curitiba Florianópolis Porto Alegre Awaiting approval (14) Big TV (12) Guarulhos Ponta Grossa Maceió Joao Pessoa ESC 90 (2) Vitoria Vila Velha The largest residential multi-service cable company in Latin America Pay TV leadership Presence in the main Brazilian cities Highest broadband growth

  3. NETWORK COVERS 45% OF A AND B GROUP HOUSEHOLDS Distribution of households by income group Millions of urban households 7.0 44.4 9.5 16.1 2.1 1.4 1.4 1.4 4.5 2.2 3.1 7.3 2.2 2.1 18.8 6.3 2.9 2.4 2.6 11.7 3.1 3.1 11.7 1.0 0.4 0.1 Total households in NET’s area Brasil Net total network Net two-way network A B1 B2 C D/E Monthly Income above: US$ 2,100 US$1,200 US$400 US$300 / US$150 US$3,900

  4. PENETRATION AND OPPORTUNITIES MARKET(BRAZIL) 44.4 NET 7.0 9.5 8.9 5.8 2.9 20% 1.5 2.0 13% 31% 29% 74% Homes Passed - Bidirectional Broadband Penetration Pay TV Penetration Total Households Total Homes Passed Pay TV Penetration Voice Penetration / Broadband penetration Broadband Penetration NEW GROWTH CYCLE FAVORED BY THREE LEVERAGE FACTORS NET’s COMPETITIVE ADVANTAGES OVERALL SCENARIO Growing computer sales and increasing interest in the Internet Replacement of conventional TVs (LCD/Plasma) Number portability Infrastructure (HFC) Mix of products and services (Combos) Fully-prepared for accelerated growth Team with expertise in Pay TV NET brand

  5. CURRENT OWNERSHIP STRUCTURE CONTROL Free Float Embratel/ Telmex Globo ECONOMIC VALUE Globo: 7% Embratel/Telmex: 35% Market: 58% 49%ON 51%ON GB 100% ON = 113,051,524 shares 10% ON 51% ON 38% ON 1% ON Common shares 100% PN = 225,687,596 shares 1% PN 0% PN 13% PN 86% PN Preferred shares Total = 338,739,120 shares Base date: 09/30/2008

  6. CORPORATE GOVERNANCE Accessible Management, demonstrating respect to stakeholders Bovespa Level 2 Company, with 100% Tag along to all shareholders Exemplary Disclosure Certificate, assuring symmetry on information release Establishment of the Quiet Period starting15 days prior to earnings releases Permanent Fiscal Committee, with 100% of independent members Board of Director, with 20% of independent members

  7. PAY TV ( million of subscribers) CLIENT BASE + 22% 2,923 Initial Client Base 2,709 2,561 Net Additions 2,474 2,401 2,304 2,224 2,142 2,051 1,976 1,903 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 2006 +17% 2007 +16% MARKET SHARE 4,743 4,961 5,161 5,349 5,512 5,799

  8. BROADBAND ( million of subscribers ) CLIENT BASE + 60% 2,059 Initial Client Base 1,798 1,588 Net Additions 1,423 1,287 1,120 984 862 752 639 549 2006 +91% 2007 +65% MARKET SHARE 6,040 6,417 6,951 7,751 8,278 8,925

  9. VOICE ( million of subscribers) CLIENT BASE + 208% 1,532 Initial Client Base 1,116 Net Additions 811 621 497 354 257 182 115 49 2007 +212% MARKET SHARE 39,120 39,755 39,399 39,541 39,897 1% 1% 1% 2% 2% 3% 3% 3% 4% 4% NET Fone 2% 2% 2% 2% 2% 6% 6% 6% 6% 6% Embratel (Livre) 30% 30% 31% 30% 30% GVT Authorized and Mirrors 20% 20% 21% 20% 20% Telefônica 37% Brasil Telecom 36% 36% 35% 35% OI 2Q07 3Q07 4Q07 1Q08 2Q08

  10. CHURN RATE – LAST 12 MONTHS PAY TV BROADBAND

  11. REVENUE GENERATING UNITS + 57% 2,083 2,739 3,051 7,362 3,366 3,753 4,134 4,607 5,071 5,521 6,220

  12. NET REVENUES and ARPU Net Revenues ARPU (R$ million) (R$) + 26% + 6% + 22% + 29% + 27% + 8% + 9% 2006 2007 2006 2007 9M08 R$ 2,267 R$ 2,902 R$ 2,669

  13. EBITDA (R$ million) + 21% + 27% + 26% + 23% 2007 2006 9M08 R$ 803 R$ 639 R$ 704

  14. INDEBTEDNESS 14 (R$ million) Net Debt Cash and cash equivalents + 3% 588 571 561 555 544 554 530 522 508 500 475 0.91x 0.84x 0.90x 0.83x 0.83x 0.76x 0.72x 0.69x 0.65x 0.61x 0.54x 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 Net Debt / EBITDA Net Debt

  15. INDEBTEDNESS (R$ million) Amortization Schedule Total Debt = R$ 1.6 billion US$ 43% R$ 57% 81 10 184 354 170 148 128 128 128 287

  16. CAPEX Higher net additions have increased our variable Capex Capex (R$ million) 89 130 110 202 168 182 186 232 172 195 260 448 356 432 Growth Capex Net Additions 890 1,332 1,996 2006 2007 9M08

  17. LIQUIDITY Strong Cash position, ensuring financial liquidity. There are no currency mismatches between revenues and expenses. Low foreign exchange exposure (perpetual bonds, Inbursa and equipments) Hedges used as a protection mechanism and not for speculative purposes Product prices not pressured by the global scenario Operating cash flow is sufficient to defray investments and financial expenses

  18. Disclaimer This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of the Company. These are merely projections and, as such, are based exclusively on the expectations of the Company’s management concerning the future of the business and its continued access to capital to fund its business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors and risks disclosed in the Company’s filed disclosure documents and are, therefore, subject to change without prior notice. Investor Relations Phone. (+55 11) 2111-2785ri@netservicos.com.brhttp://ir.netservicos.com.br

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