SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of February, 2013
Commission File Number 0-28860NET SERVIÇOS DE COMUNICAÇÃO S.A.
(Exact name of registrant as specified in its charter)
Net Communications Services Inc.
(Translation of Registrant's name into English)
Rua Verbo Divino, 1356
04719-002 - São Paulo-SP
Federative Republic of Brazil
04719-002 - São Paulo-SP
Federative Republic of Brazil
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F ___X___ Form 40-F _______
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-___
Closing price:
NETC4: R$28.00/share (BM&FBOVESPA)
NETC: US$13.99/ADR (Nasdaq)
Total number of shares: 342.963.601
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 .
During2012, 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.
In2012, we continued to obtain excellent results with our accelerated growth strategy and focus on the quality of services provided. ThePay TV base ended the year with5,381 thousand clients,13.8% more than in 2011. The Broadband base closed the year with5,498 thousandclients, up28.9% on 2011. The number oftelephone lines in service at the end of2012 was 4,977 thousandlines,29.5% bigger than 2011
In November2012, 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.
During2012, 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) | ||||||||
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Net Serviços de Comunicação S.A. |
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Consolidated income Statements |
| 4Q12 |
| 4Q11 |
| 12M12 |
| 12M11 |
(R$ thousands) |
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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 |
| 1,941,826 |
EBITDA margin |
| 30.0% |
| 30.1% |
| 28.1% |
| 29.0% |
Depreciation and amortization |
| (355,493) |
| (283,368) |
| (1,298,080) |
| (1,061,896) |
Net exchange and monetary variation |
| (121,814) |
| (30,751) |
| (226,746) |
| (135,064) |
Finance expenses |
| 51,027 |
| (57,244) |
| (205,199) |
| (339,215) |
Finance income |
| 30,520 |
| 41,666 |
| 130,345 |
| 173,793 |
Income before tax |
| 247,420 |
| 208,886 |
| 631,583 |
| 579,444 |
Tax |
| (105,901) |
| (90,729) |
| (237,881) |
| (206,271) |
Net income |
| 141,519 |
| 118,157 |
| 393,702 |
| 373,173 |
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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 notrepresent 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.
Net Serviços de Comunicação S,A, | |||||||||
Consolidated Balance sheet on December 31, | |||||||||
(R$ thousands) |
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| 2012 |
| 2011 |
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| 2012 |
| 2011 |
Assets |
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| Liabilities |
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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 |
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| 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 Revenuegrew by19.9%, from R$1,787.7 million in 4Q11 toR$2,144.3 million in4Q12. In the last 12 months the increase was18.6%, totalingR$7,939.2 million in2012 against R$6,695.9 million in 2011, chiefly driven by the expansion of the subscriber base.
Operating Costs totaledR$1,023.4 million in4Q12, an increase of22.8% up on the 4Q11 figure of R$833.3 million, andR$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 atR$477.6 millionin4Q12, 14.9% up on the R$415.8 million recorded in 4Q11. Closed the year atR$1,828.1 million,19.4% higher than the 2011 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 atR$643.2 millionin4Q12, with an EBITDA Margin of 30.0%, a19.4% improvement over the 4Q11 figure of R$538.6 million. In annual terms, EBITDA moved up by14.9% in from R$1,941.8 million toR$2,231.3 million in2012, recording a28.1% EBITDA Marginagainst 29.0% in 2011.
The Company closed4Q12 withNet Income ofR$141.5 million versus R$118.2 million in the same period of 2011. In2012as a whole, net income came toR$393.7 million, compared to R$373.2 million in 2011, up by5.5%.
Financial expenses in4Q12, a positive net value in the amount ofR$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 copyright
Company’s totalannual capex stood atR$2,593.4 millionin2012, an increase of56.2% up on the 2011, which was mainly allocated to house installations, quality of services provided, expansion of network capacity and technologic improvements.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: February 12, 2012
| NET SERVIÇOS DE COMUNICAÇÃO S.A. | ||
| By: | /S/ José Antonio Guaraldi Félix | |
José Antonio Guaraldi Félix CEO | ||
FORWARD-LOOKING STATEMENTS
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.