DJ Brazil's Net Servicos Posts BRL31.5M Profit In 2Q'03>NETC [CXPMYBW]
Net Servicos de Comunicacao SA - Sao Paulo
All figures in reals ($1=BRL3.05)
Three months ended June 30:
2Q03 2Q02
Gross revenue BRL368.8M 338.9M
Net revenue 296.9M 280.7M
EBITDA -a 77.7M 68.0M
Net income 31.5M (312.7M)
a. Earnings before interest, taxes, depreciation and amortization.
Cable TV provider Net Servicos de Comunicacao SA (NETC) said its user base was
effectively unchanged in the second quarter after declining steadily over the
nine previous quarters to end March with 1.3 million subscribers.
Net said the appreciation of Brazil's real, which gained 14.3% against the
dollar between April and June, translated into a BRL113.9 million gain in the
second quarter. Net financial gain for the second quarter was BRL42.8 million
compared with a loss of BRL55.3 million in the prior quarter.
The company, which is currently working to restructure its debts, had a net
debt position of $311 million on June 30.
-Andrea Welsh, Dow Jones Newswires; 5511.3145.1481;
andrea.welsh@dowjones.com
(END) Dow Jones Newswires
06-08-03 2241GMT(AP-DJ-08-06-03 2241GMT)
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Net Servicos Announces Second Quarter 2003 Financial Results [CXPPKPF]
Business Editors
SAO PAULO, Brazil--(BUSINESS WIRE)--Aug. 6, 2003--Net Servicos de
Comunicacao S.A., (Bovespa

LIM4) (Bovespa

LIM3) (Nasdaq:NETC)
(Latibex:XNET), the largest Pay-TV multi-service operator in Latin
America, an important provider of bi-directional broadband Internet
access (Virtua) and multimedia and data communication services for
corporate networks, today announced its earnings results for the
second quarter of 2003 (2Q03). The following financial and operating
information, except where otherwise stated, is unaudited and presented
in U.S. GAAP on a consolidated basis.
Net revenues totaled US$ 100.1 million, a 21.3% increase from US$
82.6 million in 1Q03. This result is a consequence of higher sales of
Advanced package and the impact in June of regular monthly fees
readjustments. Besides that, higher pay-per-view revenues from the
Brazilian Soccer Championship and the consistent growth in Virtua's
client base also influenced this result.
EBITDA in the quarter totaled US$ 24.2 million, 25.0% higher than
the US$ 19.4 million registered in 1Q03. EBITDA margin also grew from
25.3% to 24.2% in the quarter.
Operating Income (EBIT) was US$ 8.0 million in 2Q03 compared to
US$ 4.7 million recorded in the previous quarter. EBIT totaled US$
12.7 million in the semester, 11.8% higher than the US$ 11.4 million
registered in the first semester of 2002. The Company's determination
to implement activities in order to secure operating improvement, such
as the renegotiation of programming contracts, higher marketing
efforts, improvement of sales channels focusing on subscribers'
loyalty and new sales, the latest developments in churn management by
adopting the best retention and reversion practices in all operations
and rationalization in cost reduction, explain accumulated result in
the first semester. The Company believes that its operating
performance should maintain this improving trend and therefore EBIT
may remain positive for the next quarters.
Net Income was US$ 20.4 million (US$ 0.01 per share), against a
net loss of US$ 12.0 million (US$ 0.01 per share) registered in 1Q03.
ciao ffaiper
