A resumption of investment in marketing and sales seems to explain the improvement in financial results reported by Net Serviços for the second quarter. Sales picked up strongly, counteracting churn and stabilizing the subscriber base. The overall market is apparently improving, as evidenced by positive indicators for Sky and several other pay-TV distributors in June and especially July. The case of Net Serviços is a little different, however, given the problems it?s had in the last couple of years. It evidently obtained an excellent response to a campaign offering exemption from the membership fee on a one-year subscription.
Investment marketing and loyalty campaigns totaled 5.9m Brazilian Reals in the second quarter, up from 5.1m in Q1. Selling expense amounted to 9.4m BRL, up 68.7%.
Pay-per-view sales and increased subscription fees were the main drivers of the rise in net revenue.