Good morning, ladies and gentlemen. At this time, we would like to welcome everyone to Positivo Tecnologia's first quarter 2019 earnings conference call. Today, we have with us Lincon Ferraz , Financial and Investor Relations Officer. We would like to inform you that you will be in listen-only mode during the company's presentation. After Positivo Tecnologia's remarks are completed, there will be a question- and- answer session. At that time, further instructions will be given. If any participant should need assistance during this call, please press star zero to reach an operator.
We have simultaneous webcast that may be accessed through the company's website, ri.positivotecnologia.com.br, and MZiQ platform. The slide presentation may be downloaded from this website. Please feel free to flip through the slides during the conference call. Before proceeding, let me mention that forward-looking statements are being made under the safe harbor of the Private Securities Litigation Reform Act of 1996. Forward-looking statements are based on the beliefs and assumptions of Positivo Tecnologia's management and on information currently available to the company.
They involve risks, uncertainties, and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions, and other operating factors could also affect the future results of Positivo Tecnologia and could cause results to differ materially from those expressed in such forward-looking statements. Now I'll turn the call over to Mr. Lincon Ferraz , Positivo Tecnologia's Financial and Investor Relations Officer. Mr. Lincon, you may begin your conference.
Good morning, everyone. We are here to present the results for the first quarter of 2019, when the company recorded an increase of 65% in the revenues with mobile phones. Starting on page two, here we have some color on the market. Brazilian PC market recorded sales of 1.26 million PCs in the first quarter. It was a reduction of 6% year-on-year. In the retail, the reduction was 6.7%. The retail sales were impacted in Brazil due to the pass-through to the price by virtue of the end of the injunction that kept in zero the PIS/COFINS collection on PCs, and also the dollar appreciation.
Government market in Brazil shrank by 11%. It was related to the changes in the administration of federal and state bodies after the elections in November 2018. Corporate sales were almost flat, reflecting the economic slowdown in Brazil. Positivo sales decreased a little bit more because we are more exposed to retail and government, and both segments went down more intensely when compared to the total market.
So we closed the quarter with an annualized market share of 15.3%, 1 percentage point below the figure of the first quarter 2018. Looking specifically to the retail, our market share closed the quarter at 18%, almost flat year-on-year. Moving to page three. Here is the mobile phone market in Brazil. The market in the country also decreased 5.7% in the first quarter. The same reason, we had the end of the injunction for the PIS/COFINS and also the dollar appreciation that was passed through the prices.
The three main brands in Brazil, they were representing altogether 80% of the total market, but Positivo was successful to increase its sales by 49% in terms of volume, out of which 63% in feature phones, 39% in smartphones. This resulted in a market share of 3.6%, 1 percentage point up year-on-year. We are increasing with a more diversified sales channels and also increased presence in regional and smaller retailers. Moving to page four. Here we have some figures on the profitability. The sales margin was 9%.
This is similar to what we saw one year ago, a little bit below the figures for the fourth quarter. This was due to the sales to the government in the period with some process that we won more than one year ago, and then we had a tax impact on the margin. Fixed costs closed the quarter at BRL 10 million. It is a reduction of 3% when compared to the first quarter of 2017. Even if the inflation in the period, we could keep the G&A expenses very well controlled.
What happened on this was the reduction of the administrative staff that we held in September 2018. Moving to page six with the financial results. Here we have some figures for the volume. You can see that PC sales reduced in all the segments, more intense in the government with 67%. We had a big project in the first quarter that was postponed for the second quarter. So in the second quarter, we expect the sales in the government to increase a lot. Retail, the reduction was higher than what we saw in the total market. This is because of the focus of the company on entry-level products.
When the price go up, the demand is probably going to reduce more than in the high-end products. Mobile phone sales increased a lot, 39% in smartphone, 63% feature phones. As I mentioned, we are selling very well volumes with regional retailers, small retailers, and finding some niche of products that we don't see so much competition from the three main brands. On page seven, we can see the total revenue. It was a reduction, but if you take a look in the retail, we had an increase of 3%, totaling BRL 270 million.
This is the benefit of the diversification, considering that we sold 65% more mobile phones in the period. It fully compensated the reduction in PCs. Average prices. Most of the products went up, reflecting the FX ratio. Except for the notebooks, that we can see a reduction of 11%. It was caused by the lack of inventories for Vaio products. It will be normalized in the second quarter, but in the first quarter, we didn't have so much inventory. So these products are very high-end products. The total mix in the first quarter was concentrated to entry-level products.
Moving to page eight. Here we can see that the gross margin closed the quarter at 28%, better when compared with the first quarter 2018. This is reflecting the base on to prices of the FX appreciation, but was compensated by the increase in the sale expenses. We can see that both marketing and technical assistance went up because of the big revenue from mobile phones. They carry a lot of provisions for commercial expenses and also for after-sales, more than PCs. G&A expenses closed the quarter at BRL 24 million, 2% down year-on-year.
The highlight is the reduction on personnel. Even with the increase of salaries that we are obliged to provide every year, we could reduce because of the reduction that we made in the administrative staff as of September. Closing the financial section, we can see on page nine the result. We closed the quarter with a net loss of BRL 4.5 million, with an adjusted EBITDA of BRL 17 million, accompanied by a margin of 5%. It was lower than one year ago because of the reduced revenue, so the fixed costs were not so well diluted.
Financial results closed the quarter at BRL -12 million. It was more than what we saw one year ago, because one year ago, we had some benefits from interest on tax that were recognized in first quarter 2018. Net debt closed the period at BRL 215 million, with a multiple compared net debt over adjusted EBITDA of 2x . I close here, and I wait for your question- and- answer section. Thank you.
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