Vivo Participações S.A.'s (Vivo) 4Q 09 revenues were above our expectations due to higher-thanexpected growth in subscriber-base. EBITDA margin was in line with our estimate while EBIT margin was above our estimate, mainly due to lower-than-expected depreciation expenses as a percentage of revenues in 4Q 09. Adjusted1 net margin was marginally below our estimate due to higher-thanexpected net financial costs and taxes. In light of mixed results and considering current…

Vivo Participações S.A.'s (Vivo) preferred stock has appreciated significantly since our last update report due to strong 3Q 09 performance, coupled with general improvement in the Brazilian stock market. Although the preferred stock does not support a HOLD rating at current levels, in light of likely upward revision in estimates and target price we maintain a HOLD rating on the preferred stock. We will reassess our target price and rating for…

Despite an increase in net-additions over the past four quarters it is interesting to note that Vivo witnessed declining market share over the same period due to stiff competition in the Brazilian wireless market. However, considering the company's strong presence in the region and the increasing wireless penetration rate, we do not foresee a dramatic change in Vivo's market position in Brazil. ARPU growth is expected to remain muted, going forward due…