Question-and-Answer Session
Operator
Thank you very much, Mr. Viana. Operator instructions. Our first question comes from David Wright, please go ahead with your question, announcing your company name and location.
Q - David Wright, JP Morgan
It's David from JP Morgan in London. A couple of quick questions, I guess, first of all on Vivo, to try and get some kind of guidance for the margin this year. I guess a pretty obvious question, it sort of contributed a touch under 10% to Móviles Group EBITDA last year. Can you sort of indicate where there is now upside, perhaps, filling that gap? You've obviously kept your group guidance, so what assets do you think are perhaps outperforming your original expectations to meet that Vivo shortfall? So maybe again, to reiterate, some guidance there. Then also on Colombia, please, can you just give us some indication of the ARPU trends there in prepay and contract? Because I think the blended ARPU is showing a pretty frightening decline. I suspect it's more a mix effect, but if you could give us that, that would be very useful. Thank you.
A - Antonio Viana-Baptista
All right, David. Thank you for your questions. Regarding the Vivo guidance, as you recall we have not provided guidance for Vivo for the results of this year. And we will not provide any guidance on that front. Nevertheless, what we see on a month after month basis is that the kind of measures being implemented are likely to produce better results for H2 2006, in terms of fraud, in terms of cloning and obviously in terms of not having those non-recurrent provisions that we registered. Despite what happened in the situation at Vivo, and even though it had the weight that you mentioned in our overall results, we are able to maintain the overall guidance for the group, because some of the other areas are performing pretty well. Spain is performing pretty well and is holding on pretty well to its commitments and in the case of Venezuela and Mexico, I believe that the numbers are very good. We were prudent on the guidance provided in the case of Mexico, we believed that our team is delivering clearly there and that we're achieving good results. We believe that Venezuela is having very, very strong growth and also the southern corner in Argentina and Chile is doing an outstanding performance. As a consequence of that, we believe that we can maintain the guidance. In the case of Colombia, obviously there is an impact in terms of the mix and what you can probably see is the fact that strong growth on prepay has changed the blend in that effect. Also in this moment of very strong growth, I believe that both competitors in the case of Colombia are offering SIM-card-only kind of growth sets, and those growth sets sometimes, although they don't have a significant SAC, they do not also generate that much significant growth in terms of ARPU. We feel that in the case of contracts that we are recovering that situation, especially in the main cities. We need to make a stronger effort on that front to increase our distribution capability that will have to go hand in hand with the expansion of the quality of the coverage of our GSM network.
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