NET SERVICOS DE COMUNICACAO SA 
By Market Value: R$9.6 billion
2012 Earnings Release São Paulo, February 12, 2013 - Net Serviços de Comunicação S.A. (BM&FBOVESPA: NETC3 and NETC4; Nasdaq: NETC; and Latibex: XNET), the largest cable operator in Brazil and Latin America, offering integrated services that include Pay TV ("NET"), Digital Video ("NET Digital"), High Definition Digital Video ("NET Digital HD"), bidirectional broadband internet access ("NET Vírtua") and Voice, in association with Embratel ("NET Fone via Embratel"), announces today its results for the fourth quarter("4Q12") and for the fiscal year ended 2012 .
During 2012, the Net, the leader Company in providing pay TV service in Brazil, also conquered the first position in the residential broadband market among all fixed line operators in Brazil.
In 2012, we continued to obtain excellent results with our accelerated growth strategy and focus on the quality of services provided. The Pay TV base ended the year with 5,381 thousand clients,
lines, 29.5% bigger than 2011
In November 2012, the National Telecommunications Agency - Anatel has granted permission to the Company to provide the Service Conditional Access (SEAC), through acts of conversion of the existing cable and MMDs licenses for the new service. The authorization of SEAC is nationwide that permits the Company operating in any location of the Brazilian territory. Because of this, after complying with all legal requirements, the Company began to offer cable TV service in 44 new cities, distributed in the states of São Paulo (São Paulo, Paraíba Valley and other cities), Rio de January (Baixada Fluminense, Niterói and São Gonçalo), and capitals and metropolitan regions of North and Northeast (Recife, Salvador, Sao Luis and Belem). By the end of 2013, NET expects to double the number of cities with the full portfolio of products.
During 2012, Embrapar agreed with Globo Comunicação e Participações SA ("Globo") the terms and conditions of a restructuring of shareholdings held by Embrapar, its subsidiary Embratel and Globo in the capital of the Company and of the GB Empreendimentos e Participações S.A.(GB). The implementation of this restructuring initiated through the partial spin-off of GB for an existing entity, the EG Participações S.A. ("EG"), whose controlling shareholder still held by Embrapar and Globo participates as a minority shareholder. Thus, the GB now holds 89,446,769 common shares and 223,080,448 preferred shares issued by the Company, representing 78.15% of its voting capital and 97.63% of non-voting capital and EG now holds 14,080,704 common shares of the Company, representing 12.30% of its voting capital.
FINANCIAL STATEMENTS (UNAUDITED)
Net Serviços de Comunicação S.A. Consolidated income Statements (R$ thousands) | 4Q12 | 4Q11 | 12M12 | 12M11 |
Net revenues 2,144,264 1,787,729 7,939,196 6,695,885
Operating costs (1,023,447) (833,338) (3,879,791) (3,223,455) Selling, general and administrative expenses (477,637) (415,808) (1,828,142) (1,530,604)
EBITDA 643,180 538,583 2,231,263 1,941,826Tax (105,901) (90,729) (237,881) (206,271)
EBITDA does not represent an accounting item or cash flow for the periods in question , and should not be considered an isolated indicator of operating performance. It does not represent a number accounting, companies can do specific interpretations and, the definition of EBITDA may not be comparable with the calculation of EBITDA by other companies. O EBITDA disclosed by Net was calculated in accordance with CVM Instruction 527/12.
Assets | Liabilities | ||||
Total current assets | 1,157,326 | 1,621,495 | Total current liabilities | 2,619,751 | 1,856,970 |
Total non-current assets | 8,601,854 | 7,303,905 | Total non-current liabilities | 2,557,888 | 2,880,591 |
Equity | 4,581,541 | 4,187,839 |
Total Assets 9,759,180 8,925,400 Total Liabilities and 9,759,180 8,925,400
Net Revenue grew by 19.9%, from R$1,787.7 million in 4Q11 to R$2,144.3 million in 4Q12. In the last12 months the increase was 18.6%, totaling R$7,939.2 million in 2012 against R$6,695.9 million in
2011, chiefly driven by the expansion of the subscriber base.
Operating Costs totaled R$1,023.4 million in 4Q12, an increase of 22.8% up on the 4Q11 figure ofR$833.3 million, and R$3,879.8 million in the full year, 20.4% more than the R$3,223.5 million posted in
2011, mainly due to business growth.
Selling, General and Administrative Expenses (SG&A) stood at R$477.6 million in 4Q12, 14.9% up on the R$415.8 million recorded in 4Q11. Closed the year at R$1,828.1 million, 19.4% higher than the2011 total of R$1,530.6 million, also driven by business growth.
EBITDA (earnings before interest, income taxes including social contribution on net income, depreciation and amortization) stood at R$643.2 million in 4Q12, with an EBITDA Margin of 30.0%, a 19.4% improvement over the 4Q11 figure of R$538.6 million. In annual terms, EBITDA moved up by 14.9% in from R$1,941.8 million to R$2,231.3 million in 2012, recording a 28.1% EBITDA Margin against 29.0% in 2011.The Company closed 4Q12 with Net Income of R$141.5 million versus R$118.2 million in the same period of 2011. In 2012 as a whole, net income came to R$393.7 million, compared to R$373.2 million in 2011, up by 5.5%.
Financial expenses in 4Q12, a positive net value in the amount of R$51.0 million, are impacted primarily by the reversal of provisions related to the taxation of interest on old debt in foreign currency and the update of liability in legal disputes concerning copyrightCompany's total annual capex stood at R$2,593.4 million in 2012, an increase of 56.2% up on the
2011, which was mainly allocated to house installations, quality of services provided, expansion of network capacity and technologic improvements.
|
distributed by
|
