SAO PAULO, Brazil, May 4 /PRNewswire-FirstCall/ -- VIVO Participacoes S.A. (VIVO) (NYSE: VIV; Bovespa: VIVO3 [ON = Common Shares] / VIVO4 [PN = Preferred Shares]), announced its consolidated results for the first quarter of 2006 (1Q06). R$ millions 1Q06 4Q05 1Q05 Net Operating Revenue 2,593.8 2,987.2 2,577.3 Total Operating Costs (1,876.7) (2,337.1) (1,599.6) EBITDA 717.1 650.1 977.7 EBITDA Margin (%) 27.6% 21.8% 37.9% Net Result (179.3) (263.3) 42.1 Number of customers (thousand) 30,138 29,805 26,958 Market share (source: Anatel) 43.5% 44.4% 49.4% Net Additions (thousand) 333 965 416 The customer base increased by 11.8% over 1Q05, recording 30,138 thousand customers in a highly competitive environment. Focus on the high value market segments with exchange and upgrade of handsets, points program, stimulation to replace TDMA for CDMA, availability of Globalmoto dual-mode terminal, in addition to management of high and medium end customer base. Customer retention, with emphasis on segmented offers designed to meet each customer's profile. Post-paid customer base grew 8.5% over 1Q05. Outgoing revenue recorded 8.0% growth in 1Q06 in relation to the same period of the previous year. SAC recorded 11.3% reduction in relation to 1Q05, despite the strong competition and campaigns designed to reach different market segments. Handsets mix. Today, Vivo provides a competitive range of modern handsets in all segments of the Brazilian market, with emphasis on the EV-DO: Third Generation cellular telephone service pursuant to the International Telecommunications Union (UIT), offering 7 models of handsets and more than 10 options of Internet access cards and PDAs. Operating costs recorded 19.7% reduction in the quarter, decreasing to R$ 1,876.6 million. In relation to 1Q05 the 17.3% growth was basically due to the increase of retention costs, acquisition and plant maintenance. EBITDA of R$ 717.1 million, which represents 10.3% increase in relation to 4Q05 and a drop of 26.7% when compared to 1Q05. EBITDA margin in 1Q06 was 27.6%; 5.8 percentile points up in relation to the previous quarter and 10.3 percentile points down when compared to the same period of the previous year. Provision for bad debt of R$ 161.0 million recorded a reduction of 38.3% in relation to the previous quarter when was R$ 260.8 million. Quality and coverage improvement program increased the transmission network and successfully expanded digital coverage with 1xRTT and EV-DO technology, digitalizing 100% of the municipalities served. VIVO is leader in fulfillment of quality standards established by ANATEL, having met 95.6% of the targets. The corporate restructuring was successfully completed on March 30 and the shares of VIVO Participacoes S.A. started being traded at BOVESPA and NYSE on March 31, 2006. To download the complete version of the Company's earnings release, please visit our website: http://www.vivo.com.br/ir VIVO through its wholly-owned subsidiaries, Telesp Celular S/A, Global Telecom S/A, Telerj Celular S/A, Telest Celular S/A, Telebahia Celular S/A, Telergipe Celular S/A, Celular CRT S/A, and the Tele Centro Oeste Celular Participacoes S/A provides mobile telephone services in the states of: Sao Paulo, Parana, Santa Catarina, Rio de Janeiro, Espirito Santo, Bahia, Sergipe, Rio Grande do Sul, Acre, Amazonas, Amapa, Goias, Maranhao, Mato Grosso, Mato Grosso do Sul, Para, Rond�nia, Roraima and Tocantins and in the Federal District. Digital coverage services are provided in 100% of the municipalities served, of which more than 1,770 have 1xRTT technology coverage, of which 18 are provided with EV-DO service, recording an increase of 11 municipalities in just three months. DATASOURCE: VIVO Participacoes S.A. CONTACT: Charles Allen, +5511-5105-1172, , for Vivo Participacoes S.A. Web site: http://www.vivo.com.br/ir

Copyright