Provided by MZ Data Products
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 6-K
 
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
 
THROUGH MAY 9, 2006

(Commission File No. 1-14477)
 
 
BRASIL TELECOM PARTICIPAÇÕES S.A.
(Exact name of registrant as specified in its charter)
 
BRAZIL TELECOM HOLDING COMPANY
(Translation of Registrant's name into English)
 

SIA Sul, Área de Serviços Públicos, Lote D, Bloco B
Brasília, D.F., 71.215-000
Federative Republic of Brazil
(Address of Regristrant's principal executive offices)


Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.

Form 20-F ___X___ Form 40-F ______

Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1)__.

Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7)__.

Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.

Yes ______ No ___X___

If "Yes" is marked, indicated below the file number assigned to the
registrant in connection with Rule 12g3-2(b):

 

 

Brasil Telecom
Participações S.A.

1st Quarter 2006 Earnings Release

 
 
  
   

 

Gross Revenue (R$ million)
 

5.4% increase in comparison with 1Q05
 
Expansion of BrT’s mobile subscriber base
 
Decrease in comparison with 4Q05 due to:

              - Seasonal factor
              - TU-RL (Local Network Usage Rate) 19% drop
              - Renegotiation of ISPs traffic contracts

 
- 1 -
 
   

 

Gross Revenue (R$ million)
 

1Q05 vs 1Q06 Evolution


 
- 2 -
 
   

 

Fixed Voice
 

Demand for fixed line is met
 
Hybrid terminal represents 8.7% of LIS
 

 
- 3 -
CAGR - Compounded Annual Growth Rate
   

 

Broadband
 

ADSL revenues account for 40.8% of data revenues
 
11.4% penetration of LIS
 

 
- 4 -
CAGR - Compounded Annual Growth Rate
   

 

Mobile Telephony
 

9.4% of market share and 33.3% of post-paid accesses
 
Decrease in handsets and accessories sales
 
ARPU = R$ 26.6 and SAC = R$ 136.6
 


 
- 5 -
ARPU – Average Revenue Per User
SAC  –  Subscriber Acquisition Cost
CQGR - Compounded Quarterly Growth Rate
   

 

Operating costs and expenses (R$ million)
 

Labor severance costs and expenses
 
Interconnection cost decrease
 

 
 
- 6 -
Excluding Depreciation and Amortization
   

 

EBITDA (R$ million)
 

Positive impact: BrT mobile performance
 
Negative impacts: 19% TU-RL decrease, charges from the extension of the concession contracts, seasonal factors
 

 
- 7 -
EBITDA: Earnings before interests, taxes, depreciation and amortization
   

 

Net Income (R$ million)
 

Net income of R$ 0.0922/1,000 shares and US$ 0.2121/ADR
 

 
- 8 -
 
   

 

Net Debt (R$ million)
 

Suppliers and JSCP payment
 
Net Debt / Net Equity = 46.9%
 
Cost equivalent to 9.3% p.a. in 1Q06
 

 
- 9 -
 
   

 

Capex (R$ million)
 

CAPEX/Gross Revenue = 5.9% in 1Q06
 
Suppliers contracts under renegotiation proccess
 

 
- 10 -
 
   

 

Additional Information
 

Renegotiation processes brings significant gains and already reduces costs in equipment purchases which amount to R$ 170 million in CAPEX
 
Expectation of additional benefits in CAPEX and OPEX during 2006, establishing a new level for 2007
 
Revision of guidance for 2006:
 
        
EBITDA Margin: increase from 33% to 34% (trend )
 
     
CAPEX: reduction from R$2.3 – 2.5 billion to R$ 2.16 billion (trend )
 
     
Mobile telephony: increase in subscriber base from 3.0 million to approximately 3.3 million (a 50% growth in 2006)
 
 
- 11 -
 
   

 

 

This presentation contains forward -looking statements. Such statements are not statements of historical fact, and reflect the beliefs and expectations of the Company's management. The words "anticipates“, "believes“, "estimates“, "expects“, "forecasts“, "intends“, "plans“, "predicts“, "projects" and "targets" and similar words are intended to identify these statements, which necessarily involve known and unknown risks and uncertainties. Accordingly, the actual results of operations of the Company may be different from the Company's current expectations, and the reader should not place undue reliance on these forward -looking statements. Forward -looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments.



 
- 12 -
 
   

 

Brasil Telecom
Participações S.A.

1st Quarter 2006 Earnings Release

 
 
 
   

 
SIGNATURE
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: May 9, 2006

 
BRASIL TELECOM PARTICIPAÇÕES S.A.
By:
/S/ Charles Laganá Putz
 
Name:   Charles Laganá Putz
Title:     Chief Financial Officer