Brazil's Oi TV ends 2012 with 757,000 subscribers, up 116% YoY

RIO DE JANEIRO — Oi S.A. discloses today its results for the 4th quarter and year of 2012.

At the end of 2012, Oi had 19.1 million Residential RGUs, consisting of 12.5 million wirelines, 5.1 million broadband access points and 757 thousand pay TV clients, as well as 727 thousand public phones.

The Pay TV segment recorded another quarter of strong growth, adding 153 thousand customers in the quarter (+25.3%) and 406 thousand in the year (+115.7%) to 757 thousand customers, steadily growing in 2012.

Residential – Pay TV Revenue Generating Units (000s)

                         Growth
                  -------------
4Q12  3Q12  4Q11    QoQ     YoY
----  ----  ----  -----  ------
 757   604   351  25.3%  115.7%

With the accelerated growth of the operation, Oi has already become the third largest player in pay TV net additions, posting an incremental market share of 18.4% in 4Q12. Excluding São Paulo, where Oi does not offer this service, this percentage would be 25.4%.

IPTV and ultra-broadband plans of up to 200 Mbps were introduced in December 2012. Oi’s IPTV customers will also have access to programs on TV, on tablets and smartphones, and will be able to connect up to five stations with basic channels for free. This service is currently available in certain neighbourhoods in Rio de Janeiro.

The initial offer is an entry package with three products (3P), including TV Mais HD (90 channels), 100 Mbps internet, and the Oi Fixo wireline plan, for R$199.80. The top offer in this portfolio is a package including TV Mega HD (121 channels), 200 Mbps internet, and the Oi Fixo wireline plan, for R$239.90.