SAO PAULO, Brazil, Oct. 18 /PRNewswire-FirstCall/ -- The pay TV subscriber base came to 2,402,000, up by 17% on the 3Q06's 2,050,000; the broadband subscriber base reached 1,288,000, up by 71% on the 3Q06's 751,000; and the voice subscriber base totaled 469,000, up by 308% on the 3Q06. Net revenue totaled R$ 744.5 million, 28.2% higher than the R$ 580.9 million recorded in the 3Q06 as a result of the base growth, illustrating the company's commitment to seeing its organic growth reflected in revenue. Operating costs stood at R$ 363.7 million, climbing by 35.8% over the R$ 267.7 million recorded in the 3Q06. The main items behind this increase were the internet link and the call center as a result of the client base expansion. However, it is important to point out that the increase in link expenses is also driven by the more widespread use of higher speed connections, which has played a major role in this product's growth. As for the call center, there is also another factor that justifies the increase in expenses: the company's constant concern about service quality. The center was thus resized and reorganized into a model that fits the complexity of the new products and services. Selling, general and administrative expenses (SG&A) totaled R$ 168.2 million, 14.4% higher than the R$ 147.1 million recorded in the 3Q06, thanks mainly to higher sales commissions as a result of higher volumes and to an increase in salary following the expansion in the number of employees, especially in the sales area. Consolidated EBITDA closed the quarter at R$ 203.2 million, rising 28.4% over the R$ 158.2 million reported in the 3Q06, with EBITDA margin stable at 27%. This result shows that the accelerated organic growth has been led so as to generate profitability levels compatible with the strategy designed by the company. Conference Call - TODAY English: 10:00 AM (EST) Phone #: +1 973 935-8893 ID Code: 9255898 Portuguese: 09:00 AM (EST) Phone #: +55 (11) 2101-4848 ID Code: Net Servicos Live Webcast and earnings release: http://www.ir.netservicos.com.br/ IR Contact: Marcio Minoru (phone (5511) 2111-2811 or e-mail: DATASOURCE: NETC CONTACT: Marcio Minoru of NETC, +5511-2111-2811,

Copyright