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Cep: 70.714-000 - Brasília (DF) - Brazil
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| Oscar Thompson |  |
| CEO and Head of Investor Relations | |
| oscar@telepart.com.br | |
| Phone: 55 61 3429-5600 |
TELE NORTE CELULAR PARTICIPAÇÕES S.A.
REPORTS FIRST QUARTER 2006 RESULTS
- EBITDA margin at 22% of net service revenues for the 1Q06
- Maintenance of post-paid churn rates at low levels for 3 consecutive quarters
Brasília, May 26, 2006 – Tele Norte Celular Participações S.A. (BOVESPA: TNCP3 (Common) / TNCP4 (Preferred); NYSE: TCN), the holding Company of the providers of wireless telecommunications services in the States of Amapá, Amazonas, Maranhão, Pará and Roraima in Brazil, today announced its first quarter 2006 results. The Company registered net additions of 10,074 for the quarter, increasing the client base to 1,233,115. For the quarter, EBITDA reached R$18.9 million, representing 21.8% of net service revenues.
Operating Highlights:
| Net additions of 10,074 customers in 1Q06 |
The Company’s customer base reached 1,233,115 during the first quarter of 2006, representing a slight increase over the previous quarter. Net additions amounted to 10,074 for the quarter.
For the first quarter of 2006, prepaid net additions were 15,337, bringing the total prepaid base to 981,223 or 80% of the total base. The postpaid base decreased by 5,263 customers, ending the quarter with 251,892 customers or 20% of the total base.
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| Churn rates |
Blended annualized churn rate decreased during the quarter reaching 42% due to lower churn rates in the prepaid segment. The postpaid annualized churn rate for 1Q06 reached 25% in line with the last two quarters. The prepaid annualized churn rate decreased to 46% when compared to the 53% registered in the previous quarter, representing an improvement on two consecutive quarters.
| Operating revenues |
Net service revenues totaled R$86.7 million for the 1Q06, a decrease of R$8.2 million or 9% when compared to the previous quarter. Such decrease is related to a 4% decrease in total traffic associated with seasonality and to increased promotional minutes offered in the quarter.
Net equipment revenues for the quarter totaled R$11.2 million, an increase of 7.3% when compared to 4Q05 due to lower handset subsidies during the quarter.
As a result, total net revenues were R$97.9 million for the quarter, 7.1% lower when compared to the previous quarter.
Data revenues represented 6.9% of net services revenues for the quarter. It should be noted that the criteria for presenting the data service revenues have been adjusted in order to become more comparable with the indicators presented by our peers. As a result, we have included the VAS (value-added service) revenues to the criteria. For comparison purposes, such indicator would have been 6.3% in the last quarter of 2005 as opposed to the 4.9% that was disclosed in the previous earnings release.
For the first quarter of the year, handset subsidies for client acquisitions were R$1.9 million or R$14.1 per gross addition, lower than the R$2.3 million or R$15.0 registered in the previous quarter.
| Operating costs and expenses |
Cost of services for the first quarter of 2006 totaled R$25.3 million, 17.1% below the R$30.5 million reported in the 4Q05. This decrease is mainly related to lower interconnection costs associated with reduced outgoing traffic and to lower network maintenance expenses.
Selling and marketing expenses for the quarter totaled R$28.3 million, up 14.2% quarter-over-quarter. This increase is primarily due to the higher marketing and advertising expenses
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related to the launch of “Me Liga” (“Call Me”) promotion and to increased retention efforts during the quarter. Selling and marketing expenses as a percentage of net service revenues were 33% in the 1Q06.
Customer acquisition cost for the first quarter of 2006 increased to R$149 from R$114 reported in the 4Q05. This can be attributed to higher advertising and promotional expenses during the first quarter of 2006.
Retention costs as a percentage of net service revenues reached 18.2% for the quarter, 4.8 p.p. higher than the 13.4% registered in the previous quarter.
As anticipated in the previous earnings release G&A expenses remained within the range of 9% to 11% of net services revenues for the 1Q06, representing 10.5% of net service revenues or R$9.1 million.
Bad debt as a percentage of net service revenues has increased to 3.6% when compared to 2.5% reported in the previous quarter. When calculated against total net revenues, bad debt reached 3.2% during the 1Q06 compared to 2.2% reported in the 4Q05. This increase is related to the credit profile of clients acquired during Christmas campaigns.
| Average revenue per user (ARPU) |
Postpaid MOU (minutes of use) for the 1Q06 totaled 205, representing a 2% decrease when compared to the 209 registered in the previous quarter. As a result, postpaid ARPU (average revenue per user) reached R$74.7 for the quarter, representing a decrease of R$2.5 or 3% when compared to the R$77.3 registered in the 4Q05. The decrease in traffic usage and, consequently, in ARPUs, is primarily associated with seasonality.
For the first quarter of the year, prepaid MOU reached 28, representing a 7% decrease when compared to 30 reported in the previous quarter. Prepaid ARPU decreased to R$8.7 in the 1Q06 from R$9.7 reported in the previous quarter, as a result of lower minutes associated with seasonality and of increased promotional minutes offered during the quarter.
As a result, blended ARPU for the 1Q06 decreased R$2.1 or 9% reaching R$22.3, compared to R$24.5 registered in the last quarter of 2005.
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| Market share estimated at 24% |
Market share was estimated at 24% compared to 26% registered in the previous quarter. Gross sales share for the 1Q06 was estimated at 26.0%, representing a decrease of 1.7 p.p. when compared to the previous quarter.
| EBITDA margin of 21.8% of net service revenues |
EBITDA and EBITDA margin (excluding handsets revenues) for the first quarter of 2006 reached R$18.9 million and 21.8%, respectively, compared to R$35.4 million and 37.3% registered in the previous quarter.
| Depreciation and amortization |
For the 1Q06, depreciation and amortization totaled R$27.9 million, representing a decrease of 2.8% when compared to 4Q05.
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| Net financial expense of R$7.9 million |
| R$ millions | ||
| 4Q05 | 1Q06 | |
| Interest Expense (a) | (6.2) | (29.8) |
| Interest Income (b) | 4.9 | 3.9 |
| Foreign Exchange Gain (Loss) (c) | (13.3) | 18.0 |
| Net Financial Income (Expense) | (14.6) | (7.9) |
DETAILED FINANCIAL INCOME/EXPENSE INFORMATION (NET OF TAXES*)
| R$ millions | ||
| 4Q05 | 1Q06 | |
| Expense related to debt denominated in foreign currency | (18.7) | 13.0 |
| Gain (loss) on hedging operations | 2.2 | (23.5) |
| Sub-total | (16.5) | (10.5) |
| Expense related to debt denominated in Reais | (0.1) | (0.0) |
| Financial expense (debt related) | (16.6) | (10.5) |
| Net financial expense (not related to debt)** | (0.9) | (0.2) |
| Sub-total | (17.5) | (10.7) |
| Interest income – cash investing activities | 2.9 | 2.8 |
| Net Financial Income (Expense) | (14.6) | (7.9) |
** Net financial expenses not related to debt are primarily associated with taxes such as CPMF, PIS, COFINS and IOF.
| Net loss of R$8.1 million for the quarter |
The net result for the 1Q06 was negative in R$8.1 million, or R$1.202 per ADS (R$0.024 per thousand shares).
| Total debt of R$225.0 million |
Total debt was R$225.0 million, 100.0% of which was denominated in US Dollars. From total debt denominated in US Dollars, 80.4% was hedged.
| Net debt of R$246.4 million |
As of March 31, 2006, the Company’s indebtedness was partially offset by cash and cash equivalents (R$48.4 million) but was impacted by accounts payable from hedging operations (R$69.8 million), resulting in net debt of R$246.4 million.
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| Investments totaled R$8.4 million |
During the first quarter of 2006, Tele Norte Celular’s capital expenditures were R$8.4 million. The breakdown of such investments was as follows:
CAPEX BREAKDOWN
| CAPEX (R$ millions) | 1Q05 | 2Q05 | 3Q05 | 4Q05 | 1Q06 |
| Network | 2.0 | 17.2 | 5.8 | 33.0 | 7.5 |
| IS/IT | 0.4 | 0.2 | 1.0 | 4.3 | 0.8 |
| Others | 0.9 | (0.1) | 0.2 | 0.4 | 0.1 |
| T O T A L | 3.3 | 17.3 | 7.0 | 37.7 | 8.4 |
| Debt payment schedule |
| Year | R$ millions | % denominated in foreign currency |
| 2006 | 48.7 | 100.0% |
| 2007 | 51.3 | 100.0% |
| 2008 | 13.5 | 100.0% |
| 2009 | 100.4 | 100.0% |
| 2010 | 11.1 | 100.0% |
| Free cash flow |
Free cash flow for the quarter reached R$12.7 million, compared to the R$10.0 million reported in the previous quarter. This increase is primarily related to lower capital expenditures.
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| Financial ratios |
| Ratios | 1Q05 | 2Q05 | 3Q05 | 4Q05 | 1Q06 |
| Net Debt/EBITDA (1) = | 2.53 | 2.69 | 2.37 | 1.78 | 2.20 |
| Net Debt/Total Assets = | 34% | 33% | 32% | 31% | 36% |
| Interest Coverage Ratio (1) = | 4.5 | 4.4 | 4.7 | 6.1 | 4.9 |
| Current Liquidity Ratio = | 0.8 | 1.1 | 1.0 | 0.8 | 0.6 |
*******************
For additional information please contact:
Tele Norte Celular Participações S.A
Investor Relations Department
Oscar Thompson / Renata Pantoja / Fernanda Ribeiro
Phones: (55 61) 3429-5600 / 5616 / 5617
Fax: (55 61) 3429-5626
E-mail: ri@telepart.com.br
This press release contains forward-looking statements. Such statements are not statements of historical fact, and reflect the beliefs and expectations of the Company's management. The words "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "predicts," "projects" and "targets" and similar words are intended to identify these statements, which necessarily involve known and unknown risks and uncertainties. Known risks and uncertainties include those resulting from the short history of the Company's operations as an independent, private-sector, entity and the introduction of competition to the Brazilian telecommunications sector, as well as those relating to the cost and availability of financing, the performance of the Brazilian economy generally, the levels of exchange rates between Brazilian and foreign currencies and the Federal Government's telecommunications policy. Accordingly, the actual results of operations of the Company may be different from the Company's current expectations, and the reader should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments.
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OPERATIONAL DATA
| 2005 | 2006 | Var. % (1Q06/4Q05) | ||||||||||||||
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | YTD | 1st Quarter | |||||||||||
| Licensed Pops (in millions) | 16.7 | 16.7 | 16.7 | 16.7 | 16.7 | 16.7 | 0.0% | |||||||||
| Clients | 1,278,586 | 1,244,071 | 1,207,103 | 1,223,041 | 1,223,041 | 1,233,115 | 0.8% | |||||||||
| Postpaid | 302,603 | 285,909 | 270,832 | 257,155 | 257,155 | 251,892 | -2.0% | |||||||||
| Prepaid | 975,983 | 958,162 | 936,271 | 965,886 | 965,886 | 981,223 | 1.6% | |||||||||
| MOU Incoming | ||||||||||||||||
| Postpaid | 66 | 85 | 85 | 92 | 81 | 90 | -1.9% | |||||||||
| Prepaid | 23 | 23 | 21 | 22 | 22 | 20 | -6.1% | |||||||||
| MOU Outgoing | ||||||||||||||||
| Postpaid | 110 | 111 | 110 | 117 | 112 | 114 | -1.9% | |||||||||
| Prepaid | 7 | 7 | 8 | 8 | 8 | 8 | -7.0% | |||||||||
| Total Outgoing Traffic (Million of Minutes) | 123.4 | 118.7 | 113.2 | 114.6 | 470.0 | 109.0 | -18.3% | |||||||||
| Total Incoming Traffic (Million of Minutes) | 127.7 | 140.9 | 130.3 | 133.5 | 532.5 | 128.2 | -4.0% | |||||||||
| Average Revenue per User - ARPU (R$) | 24.0 | 24.4 | 23.5 | 24.5 | 24.1 | 22.3 | -8.6% | |||||||||
| Postpaid | 67.3 | 73.1 | 72.9 | 77.3 | 72.4 | 74.7 | -3.3% | |||||||||
| Prepaid | 10.0 | 9.6 | 9.0 | 9.7 | 9.6 | 8.7 | -10.2% | |||||||||
| Service Revenues (R$ millions) | ||||||||||||||||
| Monthly Fee | 21,849 | 21,510 | 20,789 | 19,837 | 83,985 | 18,921 | -4.6% | |||||||||
| Outgoing Traffic | 37,003 | 39,235 | 41,589 | 39,115 | 156,941 | 35,482 | -9.3% | |||||||||
| Incoming Traffic | 31,754 | 34,001 | 29,984 | 28,947 | 124,685 | 27,689 | -4.3% | |||||||||
| Other | 5,871 | 5,605 | 5,922 | 6,999 | 24,397 | 4,572 | -34.7% | |||||||||
| TOTAL | 96,477 | 100,350 | 98,284 | 94,897 | 390,008 | 86,664 | -8.7% | |||||||||
| Data Revenues (% of net serv. revenues) | 4.2% | 4.1% | 4.3% | 4.9% | 4.4% | 6.9% | 2.0 p.p | |||||||||
| Cost of Services (R$ millions) | ||||||||||||||||
| Leased lines | 9,019 | 11,196 | 6,537 | 9,130 | 35,881 | 8,897 | -2.6% | |||||||||
| Interconnection | 4,380 | 3,654 | 3,300 | 5,378 | 16,712 | 2,830 | -47.4% | |||||||||
| Rent and network maintenance | 6,105 | 5,848 | 6,129 | 6,840 | 24,922 | 6,102 | -10.8% | |||||||||
| FISTEL and other taxes | 5,684 | 3,958 | 4,109 | 5,522 | 19,274 | 5,434 | -1.6% | |||||||||
| Other | 3,849 | 3,634 | 3,637 | 3,669 | 14,789 | 2,069 | -43.6% | |||||||||
| TOTAL | 29,037 | 28,289 | 23,712 | 30,540 | 111,578 | 25,332 | -17.1% | |||||||||
| Churn - Annualized Rate | 46.5% | 49.5% | 49.6% | 46.7% | 48.1% | 41.7% | -5.0 p.p. | |||||||||
| Postpaid | 41.2% | 37.6% | 25.2% | 25.4% | 32.8% | 25.0% | -4.0 p.p | |||||||||
| Prepaid | 48.2% | 53.2% | 56.8% | 52.7% | 52.8% | 46.1% | -6.7 p.p. | |||||||||
| Cost of Acquisition (R$) | 152 | 188 | 186 | 114 | 158 | 149 | 30.8% | |||||||||
| Retention Costs (% of net serv. revenues) | 11.8% | 14.1% | 14.1% | 13.4% | 13.5% | 18.2% | 4.8 p.p | |||||||||
| CAPEX (R$ millions) | 3.3 | 17.3 | 7.0 | 37.7 | 65.2 | 8.4 | -77.6% | |||||||||
| Number of locations served | 210 | 210 | 210 | 210 | 210 | 211 | 0.5% | |||||||||
| Number of cell sites | 720 | 723 | 723 | 723 | 723 | 723 | 0.0% | |||||||||
| Number of switches | 12 | 12 | 12 | 13 | 13 | 13 | 0.0% | |||||||||
| Headcount | 854 | 882 | 864 | 891 | 891 | 886 | -0.6% | |||||||||
| Market Share | 33% | 29% | 27% | 26% | 26% | 24% | -2.0 p.p. | |||||||||
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INCOME STATEMENT (BR GAAP)
| 2005 | 2006 | Var. % (1Q06/4Q05) | ||||||||||||||
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | YTD | 1st Quarter | |||||||||||
| Service Revenues - GROSS | 137,127 | 140,635 | 136,657 | 131,476 | 545,895 | 124,515 | -5.3% | |||||||||
| Equipment Revenues - GROSS | 15,634 | 15,670 | 13,353 | 14,809 | 59,466 | 16,144 | 9.0% | |||||||||
| Total Revenues - GROSS | 152,761 | 156,305 | 150,010 | 146,285 | 605,361 | 140,659 | -3.8% | |||||||||
| Taxes | (45,592) | (44,695) | (42,127) | (40,922) | (173,336) | (42,768) | 4.5% | |||||||||
| Service Revenues - NET | 96,477 | 100,350 | 98,284 | 94,897 | 390,008 | 86,664 | -8.7% | |||||||||
| Equipment Revenues - NET | 10,692 | 11,260 | 9,599 | 10,466 | 42,017 | 11,227 | 7.3% | |||||||||
| Total Revenues - NET | 107,169 | 111,610 | 107,883 | 105,363 | 432,025 | 97,891 | -7.1% | |||||||||
| Cost of Services | 29,037 | 28,289 | 23,712 | 30,540 | 111,578 | 25,332 | -17.1% | |||||||||
| Cost of Equipment | 13,982 | 15,085 | 14,217 | 12,801 | 56,085 | 13,163 | 2.8% | |||||||||
| Selling & Marketing Expenses | 26,960 | 24,524 | 23,948 | 24,744 | 100,176 | 28,259 | 14.2% | |||||||||
| Bad Debt Expense | 4,735 | 3,784 | 2,434 | 2,360 | 13,313 | 3,127 | 32.5% | |||||||||
| General & Administrative Expenses | 969 | 15,867 | 9,916 | (526) | 26,226 | 9,112 | -1832.3% | |||||||||
| EBITDA | 31,486 | 24,061 | 33,656 | 35,444 | 124,647 | 18,898 | -46.7% | |||||||||
| % | 32.6% | 24.0% | 34.2% | 37.3% | 32.0% | 21.8% | -15.5 p.p. | |||||||||
| Depreciation & Amortization | 27,013 | 28,416 | 28,574 | 28,735 | 112,738 | 27,930 | -2.8% | |||||||||
| Interest Expense (1) | 11,775 | 35,967 | 27,075 | 6,238 | 81,055 | 29,786 | 377.5% | |||||||||
| Interest Income | (4,292) | (4,072) | (4,521) | (4,941) | (17,826) | (3,922) | -20.6% | |||||||||
| Foreign Exchange Loss | 1,062 | (36,138) | (15,171) | 13,339 | (36,908) | (17,978) | -234.8% | |||||||||
| Others | 1,173 | 1,374 | 1,453 | (3,158) | 842 | 91 | -102.9% | |||||||||
| Income Taxes | (2,688) | (1,326) | (2,996) | 35,548 | 28,538 | (6,589) | -118.5% | |||||||||
| Minority Interests | (563) | 19 | (46) | (835) | (1,425) | (2,367) | 183.5% | |||||||||
| Net Income | (1,994) | (179) | (712) | (39,482) | (42,367) | (8,053) | -79.6% | |||||||||
| Number of shares (thousand) | 335,084,155 | 335,084,155 | 335,084,155 | 335,084,155 | 335,084,155 | 335,084,155 | 0.0% | |||||||||
| Earnings per thousands shares (R$) | (0.006) | (0.001) | (0.002) | (0.118) | (0.126) | (0.024) | -79.6% | |||||||||
| Earnings per ADS (R$) | (0.298) | (0.027) | (0.106) | (5.891) | (6.322) | (1.202) | -79.6% | |||||||||
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BALANCE SHEET (BR GAAP)
| 1Q06 | 4Q05 | 1Q06 | 4Q05 | |||||||||||||
| Current Assets | Current Liabilities | |||||||||||||||
| Cash & cash equivalents | 48,407 | 65,652 | Loans & Financing | 86,437 | 58,334 | |||||||||||
| Accounts Receivable | 90,668 | 88,761 | Loan Interest | 6,254 | 7,651 | |||||||||||
| Taxes Receivable | 20,560 | 22,831 | Suppliers | 119,817 | 117,103 | |||||||||||
| Other Assets | 30,880 | 21,409 | Taxes Payable | 6,301 | 7,236 | |||||||||||
| 190,515 | 198,653 | Dividends | 3,989 | 3,991 | ||||||||||||
| Other Current Liabilities | 70,454 | 48,170 | ||||||||||||||
| 293,252 | 242,485 | |||||||||||||||
| Long-term Assets | 100,095 | 91,466 | ||||||||||||||
| Loans & Financing | 138,573 | 190,004 | ||||||||||||||
| Deferred Assets | - | - | ||||||||||||||
| Other Long-term Liabilities | 37,123 | 42,634 | ||||||||||||||
| Plant & Equipment | ||||||||||||||||
| Cost | 963,963 | 955,917 | Minority Interest | 53,439 | 55,806 | |||||||||||
| Accum Depreciation | (562,350) | (535,960) | ||||||||||||||
| 401,613 | 419,957 | Shareholders' Equity | 169,836 | 179,147 | ||||||||||||
| 692,223 | 710,076 | 692,223 | 710,076 | |||||||||||||
DEBT POSITION (BR GAAP)
| (in R$ 000) | |
| Debt | 1Q06 |
| US$ | |
| Short term | 86,437 |
| Long Term | 138,573 |
| Total | 225,010 |
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CASH FLOW (BR GAAP)
| (in R$ 000) | ||||
| 1Q06 | YTD - 2006 | |||
| Operating Activities: | ||||
| Loss | (8,053) | (8,053) | ||
| Adjustments to reconcile net income (loss) to net cash | ||||
| provided by operating cash activities | ||||
| Depreciation and amortization | 27,930 | 27,930 | ||
| Monetary variation and foreign exchange loss (principal) | (17,680) | (17,680) | ||
| Unrealized income on hedging operations | 23,239 | 23,239 | ||
| Deferred income taxes and social charges | (10,330) | (10,330) | ||
| Minority interest | (2,367) | (2,367) | ||
| Other | 456 | 456 | ||
| Changes in operating assets and liabilities | (16,373) | (16,373) | ||
| Net cash provided by (used in) operating activities | (3,178) | (3,178) | ||
| Investing Activities: | ||||
| Proceeds from sale of property, plant and equipment | 25 | 25 | ||
| Investment Acquisitions | - | - | ||
| Capital expenditures | (8,442) | (8,442) | ||
| Net cash used in investing activities | (8,417) | (8,417) | ||
| Financing Activities: | ||||
| New loans | - | - | ||
| Amortization of loans | (5,648) | (5,648) | ||
| Payment of dividends and interest on capital | (2) | (2) | ||
| Net cash from (used in) financing activities | (5,650) | (5,650) | ||
| Net increase (decrease) in cash and cash equivalents | (17,245) | (17,245) | ||
| Cash and cash equivalents, beginning of the period | 65,652 | 65,652 | ||
| Cash and cash equivalents, end of the period | 48,407 | 48,407 | ||
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GLOSSARY OF KEY INDICATORS
| I) Average Customers | ||
| a) Average customers – monthly | ||
| Sum of customers at the beginning and the end of the month | ||
| 2 | ||
| b) Average customers – quarterly and year to date | ||
| Sum of the average customers for each month of the period | ||
| Number of months in the period | ||
| II) Churn Rate (Annualized) | ||
| a) Churn % quarterly | ||
| Sum of deactivations / Sum of average monthly opening customers for the 3 months x 12 | ||
| 3 | ||
| b) Churn % - year to date | ||
| YTD deactivations / Sum of avg monthly opening customers since beginning of the year x 12 | ||
| Number of months in the period | ||
| III) MOU – Minutes of Use (Monthly) | ||
| Number of total billable minutes for the period / Average customers for the period | ||
| Number of months in the periods | ||
| IV) ARPU – Average Revenue per User | ||
| Net service revenues for the period (excluding roaming-in revenues) | ||
| Average customers for the period | ||
| V) Customer Acquisition Cost | ||
| (Sum of Marketing salaries, Selling salaries, Consulting (Sales and Marketing), | ||
| Commissions, Handsets subsidies, Advertising and promotions, | ||
| FISTEL tax (activation tax), less Activation fee for the period) | ||
| Number of gross activations in the period | ||
| VI) Free Cash Flow | ||
| Free Cash Flow = (EBITDA – CAPEX – Taxes – Net Financial Expenses* | ||
| – Minority Interests – Working Capital Variation) | ||
| * Considers interest paid. | ||
| VII) Working Capital Variation | ||
| Working Capital Variation = ( D Current Assets – D Cash & Cash Equivalents ) – | ||
| (D Current Liabilities – D Short Term Loans and Financing - D Loan Interest - D Dividends) | ||
| VIII) Interest Coverage Ratio | ||
| Interest Coverage Ratio = EBITDA / Interest Paid | ||
| IX) Current Liquidity Ratio | ||
| Current Liquidity Ratio = Current Assets / Current Liabilities | ||
| X) EBITDA | ||
| EBITDA = Operational Revenues - Operational Costs - Operational Expenses* - Bad Debt | ||
| * Does not include profit sharing. | ||
www.telenorteholding.com.br - 12/12
| TELE NORTE CELULAR PARTICIPAÇÕES S.A. | ||||
| By: | /s/ Oscar Thompson | |||
| Name: | Oscar Thompson | |||
| Title: | CEO and Head of Investor Relations | |||