1Q10 Results: VIVO Participacoes S.A.

SAO PAULO, May 3 /PRNewswire-FirstCall/ -- VIVO Participacoes S.A. (VIVO) (Bovespa: VIVO3 [ON = Common Shares] / VIVO4 [PN = Preferred Shares]; NYSE: VIV), announced its consolidated results for the first quarter 2010 (1Q10). Vivo closed the quarter by consolidating its position, achieving for the seventh consecutive month the leadership in share of net additions. Every month Anatel discloses the ranking of complaints received by the agency and, since February 2008, Vivo has recorded the lowest number of claims among the mobile telephone operators in Brazil. When we look at our financial and operating indicators, we see that Vivo has shown a remarkable balance between growth and value generation. In this last quarter Vivo has maintained differentiated profitability levels while increasing its revenue and market share.

R$ million		1Q10	4Q09	1Q09
Net Revenue		4,233.2	4,416.3	4,040.4
Total Operating Costs		(2,959.5)	(3,014.9)	(2,813.5)
EBITDA		1,273.7	1,401.4	1,226.9
EBITDA Margin (%)		30.1%	31.7%	30.4%
Net Result		191.9	217.2	133.0
Number of accesses (thousand)		53,949	51,744	45,641
Market share		30.12%	29.75%	29.70%
Net Additions (thousand)		2,205	2,897	696

Net profit of R$ 191.9 million in 1Q10, 44.3% higher than the amount recorded in 1Q09

In March, Vivo's customer base reached 53,949 thousand accesses, a growth of 18.2% in relation to 1Q09, thus recording a market share of 30.12%, which represents an increase for the seventh consecutive month. In the post-paid segment, the market share was 33.5%, keeping its leadership in the domestic market in these two indicators.

In 1Q10 Vivo managed to attract 2,205 thousand new customers, 33% in the post paid segment. The share of net additions reached 42.8%.

Net Service Revenue of R$3,929.5 million in the quarter represents an increase of 5.8% over 1Q09;

Sustained growth in data and VAS revenue, increased 51.8% and 7.3% in the comparison with 1Q09 and 4Q09, respectively, representing 17.5% of the net service revenue in the quarter. Internet revenue grew by 119.8% in relation to 1Q09;

EBITDA margin in the quarter of 30.1%, remaining stable in percentage terms over 1Q09. EBITDA reached R$ 1,273.7 million in the quarter, a growth of 3.8% in comparison with 1Q09.

Operating cash generation before investment and financing activities, obtained from the "Indirect Cash Flow" totals R$392.8 million in the quarter;

The net debt recorded in 1Q10 was R$3,937.6 million, resulting in a Net Debt/EBITDA rate of 0.75.

To download the complete version of the Company's earnings release, please visit our website: www.vivo.com.br/ir

SOURCE VIVO Participacoes S.A.

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