Net Serviços released second-quarter financial statements on Wednesday, August 6, showing a clear improvement in financial and operating indicators and a flat subscriber base. Management attributes the improvement to its new business strategy, as well as currency appreciation.
Unit sales of Vírtua, the broadband Internet service via cable modem, totaled 8,800 in the period, up 72% compared with the first quarter. Sales of pay-television subscriptions totaled 52,100, up 63%.
Annualized churn was still high (15.1% compared with 16.5% in the first quarter), and the pickup in sales was sufficient only to keep the pay-TV subscriber base stable at 1.3 million. Vírtua had 63,500 subscribers at end-June, up from 58,000 three months earlier.
Programming expense fell to 31.6%, from 34.8% in the first quarter. Sales of pay-per-view also performed strongly: 61,000 packages of national soccer championship matches (?Brasileirão?) were sold in the second quarter, on top of 36,000 in the first. Revenue from PPV amounted to 12.5m BRL in the second quarter.