Good morning, everyone. We are bringing very encouraging results, and we are very happy with the moment we are going through our company. In addition to a buoyant computer market, I am going to talk a bit more about that. We are going through a strategic definition process in the company. It has been eight weeks that we have been working with McKinsey to make strategic definitions for the next five years.
We are very happy with the results and very confident about the journey that we started three years ago and that we are going to enhance for the next five years, and that are already starting to give the first results. I would like to tell you a bit what the third quarter was like and what is going on in the market. Let us go on to the next slide. A good performance in sales with 22.2%+ in computers, very much concentrated on day operations.
That is important to say. Corporate sales, and more specifically government sales, in which we are stronger, we are going to see a recovery in the fourth quarter and not the third quarter. That is what the pandemic did. It kind of pushed it forward. On the other hand, the pandemic made the retail market just boost. Home office made computers become no longer one computer per family and going back to being personal computers through PCs as they had been envisioned in the past. Each family member tried to have one computer.
Youngsters, children would have classes, parents were working at home. The number of computer per home increased. In the beginning of the pandemic, major corporation bought the computers in retail as well. No one was ready. China was closed. People have left the country. Taiwan was closed. Korea closed. Producer centers all over the world closed, so there was no raw material. Retail is where everybody sought for supply. In the third quarter, we see this huge boost. Tablets as well, with significant increase.
We were needing tablets. The market grew a lot. We grew a lot. Again, people would look inside their homes and that is a fantastic number. One of our largest online retailers had a two day promotion. You know who they are, and they sold 46,000 in 10 months, in lumps of hours in two days. It is something that was unprecedented. Computers, if we had more notebooks in the market, we would have sold them. Just remember, in the beginning of the pandemic, everybody retracted, so did we. We did not know what was going to happen. Cash skimming, everybody had the first reaction.
We postpone, postpone things, and then whatever we had in the third quarter, we sold at the right exchange rate. Margins that were very much compressed because the dollar rate was up in the third quarter went back to normal with the normal market prices being practiced. Obviously, because there was a gap of products, in a way it enabled us to have sales at correct prices. Therefore, we recovered gross revenue, BRL 600 million net income grew along with normalized margins and other businesses already yielding results. EBITDA went up in a very healthy manner.
We got to BRL 50 million net income, BRL 69 million adjusted EBITDA. Some news that happened in the quarter that are worth mentioning. First, the electronic ballot. That was a few weeks ago. Supply will start as of next year. I believe the Supreme Electoral Court is going to keep the agreement as is. The project is going very well, quite consistently, and deliveries are going to start most probably the second quarter next year, maybe third quarter, but most probably second quarter. We are launching the cellphone [inaudible] mobile.
That is our premium product with the Positivo brand. The same retailer that has the two day promotions sold 6,000 units of our mobile in two days. The computer category was not assessed in the top of mind of Folha de S.Paulo newspaper. This time we ranked third, very close to the runner-up, showing that we have a strong brand. Although Positivo brand is stronger, not in the whole social pyramid. It is more towards AB, but we still ranked third, which made us very encouraged with the strength of our brand.
For the first time, we have the Great Place to Work seal, which is very important to attract talents. They are at the most important news of the quarter, our highlights. I talked about the McKinsey Consulting that is helping us to establish our strategy. It is a lot of work, but gives us confidence for the future as is really a boost. The computer rental market is picking up in the third quarter as well, giving us good launches. We have intelligent tasks growing up, computers growing up, smartphones growing up with new launches.
Most of the categories did very well, and all that converts to the excellent results of this quarter. Moving on. Just to tell you, since the beginning, we paid very close attention to our people. In addition to being part of the ventilators project, we had special care with our people. We continue in home office. I am still working from home. Almost the whole of our admin personnel are working from home with a few exceptions. Curitiba is still a problem. But the plans, because of all the measures we adopted, enabled us to continue working nonstop, which was very good.
And the few Great Place to Work that I already mentioned. Next. Again, top of mind, I already mentioned we ranked third with a 10% top of mind that made us very happy. And the launches, as I mentioned, I already advanced the news in the presentation. I talked about Q20, 128 GB, three cameras. It was sold at BRL 899.99. That is the right price. And with increase in the exchange rate, lots of people left the BRL 1,000 range and this is really picking up the market. And the Positivo Casa Inteligente light bulbs, as I mentioned.
People are more at home. They are paying attention to their homes, and they want to go into this remote control, the one that you use from your smartphone. So our products very well sold. This is a category that we believe should be called information, and that will bring us lots of good news in the future. Moving on. Let us talk a bit about our sector as a whole. The PC market is really picking up. Computer no longer being one by home, but a true personal computer. We do not know if this is a trend to stay. This is something that time will tell.
But everybody signalizes for a market that is not going to be the same. We do not know exactly what it is going to be like. But anyway, 1.6 million units in the third quarter of 2020, + 10% compared to the third quarter of 2019. You see clearly with the growth in retail, public institutions going down, corporate going down, that we believe that for the fourth quarter the two categories are going to show very good results.
Our share is slightly lower, again, because we are very much present in government sector. We expected more deliveries that are happening in the fourth quarter. We continue very strong at the cheaper computer range, where we have a very strong brand. We continue to lead the share of voice that we measure constantly and have been very strong in recent months. We are doing very well with a significant share in all segments, both with the Positivo and the VAIO brands. In the smartphone market, we grew a lot.
We are going up with this new category. Even at entry level categories, more people cannot afford a plus BRL 1,000 cellphone, and they will buy entry level. They will buy ours. Feature phones are very well sold in face-to-face brick-and-mortar stores. People are going back. These are socioeconomic classes, more to the lower ends. In Brazil, we call them D and E. But they are picking up.
As for market share, of course, altogether, we are losing because of our corporate and government clients. But we are doing very well in retail with a very solid position, again, both in the entry and almost mid-level with the BRL 899.99. This is what I had to tell you with regard to the market. Now I am going to turn over to our next speaker. Whatever questions you have, let us have at the end of the conference call. Now with you, I will turn to Caio Moraes, our new CFO, that will give us the financial highlights.
Thank you, Hélio . Hélio talked about a lot of things, so let us go to the next slide. Let us talk about the growth of our gross revenue. Here we clearly see an increase compared to the previous quarter. Notebooks with the increase, although there was a drop in sales and servers. As for the mix of our sales channels, retail really were picking up in this quarter. As for government institutions and corporate, a bit of a drop. That is, they are recovering at a bit slower pace, and we should see good performance as of the fourth quarter.
If we go to the next slide, talking about operational expenses and [inaudible] the same expenses, totally BRL 81 million, 15.5% of the net revenues, and only 4.2 percentage points. Again, retail, in a way, generates more marketing expenses. Freight costs, because of the pandemic, are more expensive. But still, we had an increase in sales expenses, but a decrease in G&A. As you can see, we had BRL 22 million, again, 4.2% of net revenue.
So it is almost 1 percentage point drop. This is the result of a strong control of our fixed costs that are being conducted as a part of our actions in the pandemic. Financial results, we went from BRL -10 million to BRL +7.5 million, and that is a combination of a decrease in our financial expenses, basically because of the drop of Selic, the interest rate in Brazil, and also a gain of BRL 22 million in the exchange variance.
Again, because of our hedging, the inputs bought by the company, this is the strong increase of the dollar rate in the period. Next slide. Here we talk a bit about our net income and adjusted EBITDA. As Héli o also mentioned in the highlights, we had very strong net income of BRL 50 million in the quarter with net revenues percentage of 9.6% and adjusted EBITDA, considering the hedging of our raw material of BRL 69 million with percentage of net revenue of 30.25% increase compared to the previous year.
Now, talking purely about financials, that is cash position and our indebtedness. Here we have very positive highlights. A very substantial cash generation, which led us to a comfortable position of BRL 546 million, which translated in a lower net debt and also a lower EBITDA indebtedness ratio going to 1.3x compared to last year at 1.8x . Other highlight is our liability management that we started in the company that is basically elongating our debt profile without increasing funding costs.
We are even decreasing funding costs, but using more elongated accountability management. It is improving our debt. You see in the third quarter, short term is no longer 84.5%, but rather 75.8%. We still have a long way to go, but this is ongoing work that is giving us very good results. Okay, now we are going to open for your questions.
Who is going to control the questions?
I will. Questions here. The first is from Marco Nardini from XP and Eric Wong from [Lever] The same question. They are asking us to comment on margin trends for the next quarters. Hélio , would you like to answer?
Could you repeat the question? I am sorry.
What is the trend of your margins for the next quarters, more specifically the fourth quarter?
The margins that we had in computers are going to be kept as long as we have the strong demand for computers. This is an advantage for suppliers because we have always the law of supply and demand. Within the short term, they are to be maintained. That is for a few more quarters. Of course, there is a mix that is going to be variable. You have the government sector picking up in the fourth quarter, a few other things, but that is as things are. Then we have the balance for next year. We believe margins are to be kept at those levels, maybe slightly lower, but for the following quarters.
Thank you. Second question, also from Eric from [Lever] . Could you talk about the volumes expected from the agreement with the Electoral Court for 2021 and 2022?
We believe we are going to be able to meet the full agreement. The whole agreement, we believe, makes it still not that firm, but probably 60% to be delivered by 2021 and 40% by 2022.
Okay, one more question, Hélio , from [Fadia] from Bradesco BBI. Could you talk a bit more about your performance on notebooks? Do you think the movement is more to increase the number of computers per members of the family, or is it more a matter of renewal?
It is a mix. Surveys show that lots of people tried to pick up their computers that were no longer being used, and they were not able to use them. It is not the computers that were being used. They were renewed as well. The biggest boom was just more computers per household because of homeschooling, because of home office. Everybody at home, everybody working at the same time.
Okay, great. As for smartphones, that had a huge recovery compared to the second quarter, do you believe that this is a segment that is going to grow in the future?
We are growing. The segment, not as much. Society is more or less already furnished with smartphones. It is about 50 million units a year in Brazil. So it is more of a renewal segment than new smartphones. Renewal happens when there is a problem or when they somehow get too old. At the entry level, BRL 699, BRL 599, that is where we have a very robust portfolio. We do see an increase in the actual number.
Okay, we have no more questions. Let's see if we have any more questions. Let's collect the questions before we can talk to you.
Okay. We are closing. I would like to thank you all for attending this call. This is a quite important time for our company. We believe we are on the right path for recovering growth, recovering margin. Of course, the computer segment helped us for the recovery, but other segments are also picking up, which is very important to us. So thank you very much, and remember that we are always here to answer your questions even after we close this conference call.
Thank you very much. This is just what I wanted to say. Remember, any questions, we are here for you, and we wish you a very good day.