Sao Paulo :UOL S.A. , the leading online media portal and Internet company in Brazil, announces today 1Q10 results.
Advertising and other revenues totaled R$ 120.9 million in 1Q10, a 37% increase over 1Q09. This growth was driven by advertising revenues and by the growth in revenues from all the products in our internet service platform.EBITDA totaled R$40.2 million in 1Q10, 6% lower than in 1Q09, accompanied by EBITDA margin of 22% 5 p.p. down also from 1Q09. Excluding the non-recurring items in both periods, net revenues grew 15% while operating expenses added to the cost of services grew 10%. EBITDA, as consequent, grew 31% over 1Q09.
Gross margin in 1Q10 was 69%, 4 p.p. down from 1Q09. Excluding non-recurring items from 2009, gross margin would have reached 64% in the 1Q09, up 5 p.p. year-on-year. Gross profit totaled R$126.1 million.
Net income was R$23.5 million in 1Q10, decreasing by 36% from 1Q09. Excluding non-recurring items in both periods, net income would be 4% lower than in 1Q09.
The number of paying broadband subscribers reached 1.3 million in March 2010, an increase of 8% over March 2009
Another highlight was the operational start-up of the new Datacenter, the safest and most efficient of the country. It will serve all the users of our products and services, whether they are subscribers or not.