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Posts Tagged ‘mobile communications’

From Reuters (Tais Fuoco)

* Q4 net income jumps to 215.5 mln reais vs 26.2 mln

* 2008 profit 389.7 million reais vs loss 99.8 mln

* Sees Brazil’s wireless market continuing to expand

* Seen “a small growth” in January

Brazil’s largest mobile phone company Vivo Participacoes (VIVO4.SA)(VIV.N) said on Friday its fourth-quarter profit surged nearly ten-fold because of a sharp increase in new users and as it kept costs in check.

The company’s chief executive Roberto Lima said the profit surge in the fourth quarter was due to changes in its subscriber and pre-paid telephony offers and “very rigorous” cost controls, as it renegotiated contracts with suppliers.

Vivo, a joint venture of Portugal Telecom (PTC.LS) and Spain’s Telefonica (TEF.MC), said net income rose to 215.5 million reais ($94.1 million) from 26.2 million reais in the fourth-quarter of 2007.

For all of 2008, Vivo made a profit of 389.7 million reais, the best year since the company was formed in 2003, compared with losses of 99.8 million reais in 2007.

“Vivo had a few illnesses in its infancy but today it’s growth is healthy,” Lima said in an interview with Reuters.

Vivo added 2.668 million new mobile phone users in the fourth-quarter, bringing its total user base at the end of 2008 to 44.95 million people.

The jump in new wireless clients helped boost sales by 14 percent to 4.27 billion reais in the fourth quarter, Vivo said. Sales for all of 2008 totalled 15.8 billion reais.

Lima said the company’s growth could slow in 2009 but he believed Brazil’s wireless market would continue to expand.

“This is a sector that has been growing in the double digits since its creation. Even if it grows 10 percent, it’s still a fantastic rate,” he said, pointing out that any growth achieved was on the basis of an already large customer base.

He said the company had seen “a small growth” in January this year over the first month of 2008.

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 43 percent to 1.39 billion reais from 978.9 million in the final quarter of 2007.

EBITDA as a percentage of sales, a measure of profitability widely followed by analysts, jumped 6.6 percentage points to 32.7 percent in the fourth-quarter.

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Spring Wireless has just established its U.S. headquarters in Seattle. The company is one of the fastest growing ventures in the mobile enterprise space and was originally founded in Sao Paulo, Brazil in 2001. It has operations across the Americas, Europe and Asia.

Brazilian investment in the USA

Brazilian investment in the USA

“We see great potential in the U.S. market, which has traditionally lagged behind Europe and Latin America in mobility. Spring Wireless has been at the forefront of the mobile explosion in markets outside of the U.S. and we’re excited to support our global customers operations in the U.S.,” said Marcelo Condé, Chief Executive Officer of Spring Wireless. “With more than 220 customers worldwide, we understand the needs of global companies. Our move into North America will help us better serve our U.S. customers and help us extend into new markets as we continue to expand our business globally.”

In August 2008, Goldman Sachs, New Enterprise Associates (NEA) and Brazilian investment firm, Ideiasnet, invested $66 million in Spring Wireless to fuel its worldwide expansion and help fund future acquisitions. In connection with the financing, Spring Wireless’ Board of Directors has grown to include Raheel Zia, vice president of Goldman Sachs Principal Investment Area, and Patrick Kerins, general partner at NEA.

In addition to its new Board members, Spring Wireless has also named a U.S. management team including Shakil Haroon, who will serve as Spring Wireless USA general manager. Prior to joining Spring Wireless, Haroon spent 10 years at software startups and more than 10 years in sales and management at Intel and Microsoft.

Additionally, Liron Shaked will serve as vice president of business development and corporate marketing and Kelly Malone will serve as vice president of sales for Spring Wireless USA. With more than 12 years of international experience in both corporate and startup environments, Shaked will oversee strategic alliances, global partnerships, channel development and global marketing initiatives for Spring Wireless. Malone, who prior to joining Spring Wireless led the Microsoft sales team responsible for supporting the development, marketing and sales of Motorola smart phones, rugged hand-held computers and set-top-boxes worldwide, will head up U.S. sales.

Spring Wireless has been called the largest and fastest growing company in the mobile enterprise space and was recently identified as a leader in the Gartner Magic Quadrant on Mobile Enterprise Application Platforms. Spring Wireless helps connect businesses, its employees and customers to the information they need, when they need it. The company offers a robust platform, prebuilt applications and critical services, enabling greater interoperability for customers than any of its competitors. It works with more than 180 devices, multiple operating systems and an array of common business applications.

As the single point of contact for its clients, Spring Wireless deploys and manages the devices, software and services companies require to go mobile, removing the need for global companies to seek out multiple vendors in different geographical areas. The company provides a complete solution with faster deployment times and lower total cost of ownership than traditional mobile providers, reducing deployment times by up to 50 percent and total cost of ownership by up to 35 percent in some cases.

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