Good morning everyone, and welcome to the earnings call of the second quarter of 2020 of Positivo Tecnologia S.A. My name is Caio Moraes. I am the company CFO and IRO, and I will lead you through this presentation. Starting right now at page two, talking about our highlights, the second quarter highlights. Domestic market recovers and accelerates demands for PC with home office and homeschooling. The new need of families has increased the number of PCs per household, with a tendency to migrate from one PC per family to one per person.
We also saw a strong exchange rate volatility affecting part of our profitability this quarter. Despite this, there was a reduction of BRL 108 million in the company's net debt, reaching BRL 151 million in the second quarter. June performance was better than that of May, which was higher than that of April. The market showed a strong recovery with the reopening of stores and the return of activities in various sectors of the economy, in parallel with the growth of the domestic market.
In terms of electronic voting machines, Positivo won the TSE bid and will provide electronic voting machines for the 2022 elections onwards. We posted a net revenue of BRL 441 million in the second quarter of 2020, what is 20% less than the same period of 2019, and in the first half of 2020, of BRL 819 million, what is 9% below the same quarter of the last year. We posted as well a net income of BRL -8.6 million in the second quarter, and BRL -4.2 million in the first half of the year.
These losses partially reflect an initial strategy for preserving and strengthening our cash position at the expense of growth, given all the market uncertainties we were experiencing, especially in the first two months of the quarter. In terms of core business, what we saw was an acceleration of retail PC sales in May and June, and the other channels showing a slower recovery pace. The volumes in the second quarter, we can summarize as follows: retail increased 2.7%, whereas public institutions dropped 42% and the corporate segment 32%.
The Hi Technologies company grew significantly in the second quarter with the development of sale of rapid tests for COVID-19, recording a revenue of BRL 55 million in the second quarter. In terms of the servers business, this business unit grew 28% in the second quarter, recording a net revenue of BRL 39 million. It is also a highlight. In the IoT segment, the Positivo Casa Inteligente business is now one of the best-selling items in the category of Brazilian e-commerce in the second quarter, recording sales of BRL 4.6 million.
If we move to the next slide number three, talking about the PC market in 2020. The total PC market in Brazil decreased 13% in the second quarter, mainly due to lower sales in the corporate channels and the public institutions, which suffered more from the crisis and have a slower recovery after the negative peak in April. In the six-month period, there was an increase of 8%. The retail market showed an accelerated recovery at the end of the quarter, despite modest numbers in April. After applying measures to close stores and social distancing, the movements of home office and homeschooling contributed to an acceleration of sales in the period.
Several families that previously had a computer per home realized a need to increase this quantity of about one device per person. This move generated growth of 10% in May and 18% in June when compared to the same periods of 2019. In the consolidated quarter, there was an increase of 3.6%. Thus, Positivo's market share remained resilient at 12.6% of the total market and dominant in entry-level notebooks with a 79% market share. In the next slide, talking about the cell phone market in the second quarter.
This market was impacted by the effects of the COVID-19 crisis with a reduction of 31% when registering 9.6 million units sold and a reduction 18% in the first half of the year, with a total volume of 21 million devices sold. The behavior of cell phone sales confirms the preference for PC purchases in the period, in addition to supply limitations we had due to the closing of factories in China. In our case, we recorded a 2.6% market share in the second quarter.
The entry-level devices where we really have a big share of the market, and the price range is lower than BRL 300. We had a greater impact with the crisis due to the closure of the physical stores. In the next page number five, talking about the growth avenues, servers and Hardware- as- a- Service. The server unit had a great performance and posted BRL 39 million in revenue in the second quarter, what is an increase of 28%. In the six-month period, the revenue was of BRL 69 million, also growing 28%.
The Hardware- as- a- Service remains a great business and may benefit from an upturn in the corporate market in the months to come. In the next slide, talking about IoT and the educational business. We see a growing consumption of products for home and decoration. The demand due to the social distancing in that period increased, and that was done through our e-commerce channel. Positivo Smart Lamp is one of the Amazon's best sellers, just as an example. In the educational technology business, we will benefit continuously from the homeschooling phenomenon by providing teaching solutions for schools.
In the next slide number seven, we talk about our investee Hi Technologies . This investee is one of our corporate venture investees. It had a great performance with quick tests for COVID-19 and posted, thus, a revenue of BRL 55 million in the second quarter, and has also broad backlog of contracts to be delivered in the next periods.
We expect this to thrive in the next months as well. Now moving to the financial highlights on page number nine. Talking about the sales volume, as highlighted before, we had a second quarter with a total sales of 177,000 units of PCs, what represents a drop of 13% in relation to 2019, with the result of a growth in the retail of 2.7%, combined with a drop of 42% for the public institutions and 32% for the corporate market. Cell phone sales followed the market downturn in the second quarter.
The total volume was 221,000 units, a reduction of 54%, which is a result of a drop of 55% in smartphones and 53% in feature phones. Moving to page 10, talking about our net revenue. We recorded BRL 440 million in the second quarter, which represents 20% drop against the strong comparison basis of the second quarter of 2019. Among the segments, the variation was 22% drop in retail, 10% in public institutions, and 36% drop for corporate and other businesses.
The biggest variations in the product mix in the second quarter were in the notebooks, which represented 49% of the consolidated revenue as a growth, and service with 9%, which is a growth as well. The positive highlight is, once again, the service, which showed recovery growth, and in the second quarter grew 28%, registering a revenue of BRL 39 million. In the next page, talking about operating expense, G&A, and financial result.
The same expenses in the second quarter totaled BRL 61 million. A reduction as a percentage of net revenue, which is completely explained by the lower sales reduction in the same quarter in the segments such as public and corporate institutions. The G&A grew by 8%, but excluding all the extraordinary expenses we had by preparing the plans and our activities for the COVID-19 crisis and mandatory investments in R&D, we would have posted a saving of 7% in that line, totaling a total expenses of BRL 10 million.
The financial result was negative by BRL 8.5 million, which represents an improvement of 62% against the same quarter of 2019, mainly due to the gains with FX of BRL 6 million, in addition to the reduction in financial income and expenses following the drop of the Brazilian basic interest rate, the Selic. In the next slide, we talk about EBITDA net income and net debt multiple. We saw our Q2 2020 EBITDA returning to a positive field, registering BRL 7.9 million. In the six-month period, an EBITDA close to nil.
This is mainly due to the strong depreciation of the exchange rate, as explained before, as well as the lower sale basis we had in the second quarter of 2020. In terms of exchange rate, it is important to highlight that the transfer of prices was more relevant in the last month, especially in the month of June. We suffered from the higher exchange rate with no pass-through in the months of April and May, along with the additional breadth that the market showed, mainly in the retail sales.
Additionally, the second quarter result also reflects, in part, our initial strategy to preserve cash, given the market uncertainties that peaked in April. On the right side, we have a significant reduction in the net debt in the second quarter of more than BRL 100 million, with the maintenance of debt in the multiple of 1.7x , despite a significant reduction in EBITDA.
The reduction, once again, along with the impact of the follow-on we had in the first quarter of 2020, is mainly due to the partial normalization of our receivables flows, which were postponed at the end of the first quarter after the beginning of the restrictive measures of COVID-19. Now, we reach the end of our presentation. We are going to open now for questions- and- answers. Since there are no questions and answers, I would like to thank you again, once more, for the participation in this earnings call. Hope that all of you do well. A good afternoon and evening to everybody. Thank you very much.