Pursuant to Rule 13a-16 or 15d-16 of the
04719-002 - São Paulo-SP
Federative Republic of Brazil
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____ If "Yes" is marked, indicate below the file number assigned to the Registrant
in connection with Rule 12g3-2(b):82-___
FINANCIAL PERFORMANCE AND LIQUIDITY – CONSOLIDATED 2Q12
São Paulo, July 26, 2012 – 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 second quarter ended June 30, 2012 (“2Q12”).
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Net Serviços de Comunicação S.A. |
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Consolidated Income Statements |
| 2Q12 |
| 2Q11 |
| Δ% |
(R$ thousands) |
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Net revenues |
| 1,927,273 |
| 1,628,940 |
| 18.3 |
Operating costs |
| (955,596) |
| (789,285) |
| 21.1 |
Selling, general and administrative expenses |
| (455,814) |
| (374,109) |
| 21.8 |
EBITDA | (a) | 515,863 |
| 465,546 |
| 10.8 |
EBITDA Margin |
| 26.8% |
| 28.6% |
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Depreciation and amortization |
| (309,675) |
| (259,347) |
| 19.4 |
Net foreign exchange and monetary variation |
| (117,271) |
| 38,954 |
| (401.0) |
Finance expenses |
| (76,161) |
| (112,511) |
| (32.3) |
Finance income |
| 32,285 |
| 44,685 |
| (27.8) |
Income before taxes |
| 45,041 |
| 177,327 |
| (74.6) |
Taxes |
| (15,474) |
| (52,399) |
| (70,5) |
Net income |
| 29,567 |
| 124,928 |
| (76.3) |
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(a) EBITDA does not represent an accounting item or cash flow for the periods in question, Therefore, EBITDAshould not be considered an alternative measure of net income, an isolated indicator of operating performance or an alternative to cash flow as a source of liquidity, Since EBITDA is not an accounting item, companies may conduct specific interpretations, which means that the definition of EBITDA may not be comparable with the definitions adopted by other companies,
Net Revenueincrease18.3%, totalingR$1,927,273 thousand in the2Q12 compared to R$1,628,940 thousand in the 2Q11, mainly driven by the expansion of the subscriber base.
EBITDA (earnings before interest, taxes, depreciation and amortization) totaledR$515,863 thousandin the2Q12compared toR$465,546 thousand in the 2Q11, therefore an increase of 10.8%.
The Company recorded in the2Q12 Net Income ofR$29,567 thousand,an increase of 76.3%comparing toR$124,928 thousand recorded in the 2Q11, substantially due to the exchange rate recorded during the period, which did not affected significantly the Company’s cash flow.
| Net Serviços de Comunicação S.A. | ||||||||||
| Consolidated Balance sheet | ||||||||||
(R$ thousands) |
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| 2Q12 |
| 2Q11 |
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| 2Q12 |
| 2Q11 | |
Assets |
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| Liabilities |
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Total current assets |
| 1,168,093 |
| 1,395,362 |
| Total current liabilities |
| 1,728,719 |
| 1,376,517 | |
Total non-current assets |
| 7,894,391 |
| 7,131,899 |
| Total non-current liabilities |
| 3,001,761 |
| 3,104,639 | |
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| Stockholders’ equity |
| 4,332,004 |
| 4,046,105 | |
Total Assets |
| 9,062,484 |
| 8,527,261 |
| Total Liabilities and Stockholders’ Equity |
| 9,062,484 |
| 8,527,261 |
In May 2012, the Company settled the Credit Bank Notes issued by Itaú BBA totaling R$121,196 thousand, and settled all the public debentures of the 6th issue in the amount of R$ 611,792 million, both amounts including interest and premium paid for early settlement. The resources used for these assessments were obtained through mutual contracts with America Movil, SAB CV, the Company's indirect controlling shareholder, in the total amount of R$ 680,000, maturing in five years, at the interest rate equivalent to the CDI plus a "spread" of 1.08% per annum, payable semiannually.
NET SERVIÇOS DE COMUNICAÇÃO S.A. | ||
By: | /S/ José Antonio Guaraldi Félix | |
José Antonio Guaraldi Félix CEO |
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.