VIVAX Announces 1Q07 Earnings Release

VIVAX Announces 1Q07 Earnings Release

AMERICANA, Brazil, April 25 /PRNewswire-FirstCall/ -- VIVAX S.A. (Bovespa: VVAX11), or the "Company", Brazil's second-largest pay television operator in number of subscribers, and one of the country's main high-speed data service providers, announces today its earnings for the first quarter (1Q07).

Highlights in the quarter

-- The first quarter of 2007 was marked by strong growth in the subscriber
base, presenting excellent operating and financial results, and strong
revenue growth.
-- The number of pay television subscribers grew 11.1% compared to 1Q06
and 2.2% to 4Q06, closing 1Q07 with 335,419 subscribers. The high-
speed data subscriber base closed 1Q07 with 153,609 subscribers, a 59%
growth in relation to 1Q06 and 14% to 4Q06.
-- In 1Q07, the pay television services churn rate was 1.1% for pay
television and 1.6% for high-speed data, a 0.1 p.p. decrease in pay
television and 1 p.p. decrease in high-speed data compared to 1Q06.
This improvement is the result of actions implemented by the Company
and changes made since 2006 in sales promotions.
-- Consolidated average ARPU (average revenue per user) reached R$106.00
per month in 1Q07, increasing 11.0% compared to the R$95.50 obtained in
1Q06.
-- Net revenue totaled R$91.1 million in 1Q07, representing growth of
20.3% compared to the R$ 75.7 million earned in 1Q06.
-- The RGU (Revenue Generating Unit) ratio went from 1.23 in 1Q06 to 1.31
in 1Q07, representing a 6.5% increase in the year.
-- Consolidated EBITDA for 1Q07 was R$35.7 million, a result 13.0% higher
than the R$31.6 million achieved in 1Q06. The EBITDA margin reached
39.2% in 1Q07, a 2.5 p.p. decrease in relation to 1Q06 and 1.7 p.p.
higher than in 4Q06.
-- The Company had net income of R$5.9 million in 1Q07, decreasing 17.7%
compared to 1Q06.
-- Net debt ended 1Q07 at R$127.4 million and the net debt/adjusted EBITDA
ratio ended 1Q07 at 1.0x.

Investor Relations Contact
Gilson Roberto Granzier
Chief Financial Officer and Investor Relations Director
Tel: (19) 3471-8109
E-mail: ri@vivax.com.br
Investor relations website: www.vivax.com.br/ir

1Q07 Earnings Release Teleconference

Date:
Thursday, April 26, 2007.

Times:
> Portuguese (BR GAAP)
11 am (Brasilia time zone)
10 am (New York time zone)
Phone: (+55) 11-2101-4848
Replay: (+55) 11-2101-4848
Code: Vivax

> English (BR GAAP)
12 noon (Brasilia time zone)
11 am (New York time zone)
Phone: 1 (973)-935-8893
Replay: 1 (973) 341-3080
Code: 8675223

For further information, please access our website http://www.vivax.com.br/ir

Source: VIVAX S.A.

CONTACT: Gilson Roberto Granzier, Chief Financial Officer and Investor
Relations Director, VIVAX S.A., +011-55-19-3471-8109, or ri@vivax.com.br

Web site:

http://www.vivax.com.br/ir

-------
Profile: intent