Good morning, ladies and gentlemen. At this time, we would like to welcome everyone to Positivo Tecnologia's 3Q 2018 earnings conference call. Today we have with us Lincon Ferraz, Financial and Investor Relations Officer. We would like to inform you that this 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 at any time a participant needs assistance during the call, please press star zero to reach the operator.
We have simultaneous webcast that may be accessed through the company's website, ir.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 1995. 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.
Thank you. Good morning, everyone. We are here to present the results for the Q3 2018, when the company posted a net income of BRL 11 million. Also, Positivo recorded a market share of 15%, out of which 21% in retail, 8% in the corporate, and 20% in the government. Net revenue from mobile phones increased by 65%, totaling BRL 115 million. We have an increase in the market share of 1.6 percentage points, reaching 4%. Our sales profitability recovered in the period due to the transfer of the U.S. dollar appreciation to the prices.
Also, our adjusted EBITDA registered BRL 36 million, 18% up year- on- year, with a margin of 7.4%. In the first nine months, the company posted a net income of BRL 2 million, reversing the loss recorded in the same period of the prior year. Finally, we entered in the PC Gamer market and launched a new brand, offering high-performance notebooks and desktops to a growing audience. Moving to page four, here we have some color on the PC market. The market showed a slight increase of 1% year- on- year in the third quarter, mainly caused by the price increase adopted by the manufacturers.
The sales channels aimed to limit the purchasing in the period and worked with tighter inventories. In the corporate market, the elections in Brazil caused a lot of uncertainties in the companies, so it inhibited the investment. In the government, we have in Brazil some regulations regarding the deliveries in this period, so the volumes were very low. As I mentioned, our market share registered 15% in the total market.
It is flat year-on-year and a small reduction when compared to the second quarter due to the low deliveries to the government. In retail, we closed the quarter with 21%, flat year-on-year. On page five, mobile phones. Here we can see the market concentration among the three major manufacturers. They hold 81% of the total market, leaving only 19% for the other companies. Our market share reaches 4% in this quarter, which is much more than one year ago when Positivo recorded only 2.4%. On page six, here we can see our profitability.
It was a big recovery in the third quarter, reaching 10%. In the second quarter, it was only 4.6% because of the beginning of the U.S. dollar appreciation, which we didn't pass to the price at that time, and also the increase in the memory cost, which impacted the government projects. On the right side of this page, you can see the G&A expenses. We reduced them by 13%. The company in September made a big restructure in the administrative staff, and we could reduce it by 14%, and we expect in the coming quarters to keep this new level.
Let's see if we can do that, but we are very confident. The reduction took place in September, so we should expect a little bit more gains in the coming quarters. On page seven, here is the 2A.M., the new brand for PC gaming. We have two examples here. One is the cheapest model, is a Core i3 processor with GeForce MX150. Also, we have a better configuration on the right side. It's a notebook with a GeForce GTX 1060 with 6 GB in this video card, also with a Core i7 processor.
This one, the price starts from BRL 7,000. The PC gaming in Brazil is growing a lot. We have been seeing a very growing audience in the country, and this market turnover in the country is over BRL 5 million. On page nine, this is our sales. In Brazil, it's important to highlight that we grew by 1%, a little bit more than the total market, so we gained a small portion of market share. Also in Brazil, we grew a lot in mobile phones, with 5% in smartphones and 61% in the feature phones.
Out of Brazil, with Positivo B GH brands, sales were reduced by 66%, mainly because in the third quarter of 2017, we had a big project in Argentina related to the government. Moving to page 10. Net revenue total is BRL 490 million. This is 12% up year-on-year. It's very interesting to highlight that mobile phones contributed a lot in this quarter, growing more than 50% year-on-year. In the first nine months, our net revenue registered BRL 1.4 billion, 6% up year-on-year. On the right side, you can see the average prices.
They all went up, reflecting the pass-on to prices of the dollar appreciation, with the exception of the desktops, which reduced by 7%, reflecting the reduced sales to the government in this period. It's important to bear in mind that the government sales, the equipment are very high settings and extended period of guarantees. So page 11. Here we can see COGS and also SG&A. Our cost represented 73% of the net revenue. It's back to normal level. It was very high cost in the second quarter because we didn't pass on to prices, the U.S. dollar appreciation by that time.
Sales expense also reduced back to 17%, and the G&A, you can see the reduction. The most important group is the personal expenses, which went down by 15% in the period. Page 12. Here we can see the results. Our EBITDA closed the quarter with BRL 36 million, with a margin of 7.4%, both growing a lot when compared to the second quarter, and a little bit higher when compared year-on-year. Our financial results closed the period with a net expense of BRL 7 million, helped by the exchange rate variation, which was BRL +11 million.
Our net income in the quarter was BRL +11 million, twice as big year-on-year. In the first nine months, we closed with a net income of BRL 2 million, reversing the net loss of the same period in 2017, when we closed the first nine months with a net loss of BRL 2 million. Net debt closes the quarter at BRL 265 million with a multiple net debt over EBITDA below 3x . That's it. Thank you very much, and see you in the next conference call.
Thank you. The floor is now open for questions. If you have a question, please press star one on your touch-tone phone at this or any time. If at any point your question is answered, you may remove yourself from the queue by pressing star two. Questions will be taken in the order they are received. We do ask that when you pose your question, you pick up your handset to provide optimum sound quality. If you are connected on the webcast, click on Question button. Please hold while we poll for questions. I'll turn the call over to Positivo Tecnologia for any final considerations.
Thank you. See you again, guys, in the next conference call, which will take place next year. Thank you so much. See you.
And thank you, sir. This concludes today's Positivo Tecnologia's earnings conference call. You may disconnect your lines at this time, and have a wonderful day.