Service Costs and Operating Expenses

Select one of the items in this chapter Introduction Permitted Annual Revenue (PAR) Net Operating Revenue Service Costs and Operating Expenses EBITDA Financial Income Net Profit Capital Structure Distribution of Added Value Cash Flow

Service costs and general and administrative expenses increased by 19.0% in relation to 2007, to R$ 427.7 million in 2008. The principal factor which affected the company’s costs and expenses in comparison to the current year was the effect of the reversion of the contingency provision in 2007, which resulted in a positive variation of R$ 48.1 million. Contingencies are evaluated on a regular basis and classified according to the probability of loss for the company.