UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER PURSUANT TO
RULE 13a-16 OR 15d-16 OF THE SECURITIES
EXCHANGE ACT OF 1934

For the month of November, 2011

Commission

File Number 000-5149

CONTAX PARTICIPAÇÕES S.A.

(Exact name of Registrant as specified in its Charter)

Contax Holding Company

(Translation of Registrant's name in English)

Rua do Passeio, 56 – 16th floor
Rio de Janeiro, RJ
Federative Republic of Brazil

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.

Form 20-F þ Form 40-F o

Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.

Yes o No þ

Contax Participações
S.A. and subsidiaries

Quarterly Financial Information - ITR
for the quarter ended September 30, 2011 and Auditors’ Report on the Quarterly Financial Information

Deloitte Touche Tohmatsu Auditores Independentes

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

Notes to the Quarterly Financial Information – ITR for the quarter and nine-month period ended September 30, 2011

(In thousands of reais, except when otherwise indicated)

REPORT ON REVIEW OF INTERIM FINANCIAL STATEMENTS

(Convenience Translation into English from the Original Previously Issued in Portuguese)

To the Board of Directors and Shareholders of

Contax Participações S.A.

Rio de Janeiro – RJ

Introduction

We have reviewed the individual and consolidated interim financial information of Contax Participações S.A. (“Company”) and its subsidiaries, contained in the Quarterly Financial Information Form – ITR for the quarter ended September 30, 2011, comprising the balance sheets and the related statements of income, comprehensive income for the three and nine-month periods ended on that date, changes in shareholders’ equity and cash flows for the nine-month period then ended, including the explanatory notes to the interim financial statements.

Management is responsible for preparing individual interim financial information according to the Technical Pronouncement CPC 21 – Interim Financial Reporting and consolidated interim financial information in accordance with CPC 21 and IAS 34 – Interim Financial Reporting, issued by the International Accounting Standards Board – IASB and fair presentation of this interim financial information in accordance with the standards established by the Brazilian Securities and Exchange Commission, applicable to the preparation of the Quarterly Financial Information - ITR. Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of Review

We conducted our review in accordance with Brazilian and International Standards on Review Engagements (NBC TR 2410 - Revisão de Informações Intermediárias Executada pelo Auditor da Entidade and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of the interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with auditing standards and accordingly does not allow us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion on the individual interim financial information

Based on our review, we are not aware of any facts that would lead us to believe that the individual interim financial information included in the aforementioned quarterly financial information was not prepared, in all material respects, in accordance with CPC 21 applicable to the preparation of Quarterly Financial Information – ITR and were fairly presented in accordance with the standards issued by the Brazilian Securities and Exchange Commission.

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

Notes to the Quarterly Financial Information – ITR for the quarter and nine-month period ended September 30, 2011

(In thousands of reais, except when otherwise indicated)

Conclusion on the consolidated interim financial information

Based on our review, we are not aware of any facts that would lead us to believe that the consolidated interim financial information included in the aforementioned quarterly financial information are not prepared, in all their material respects, in accordance with CPC 21 and IAS 34 applicable to the preparation of the Quarterly Financial Information – ITR and are fairly presented in accordance with the standards issued by the Brazilian Securities and Exchange Commission.

Other matters

Interim Information of Value Added

We also have reviewed the individual and consolidated interim statements of value added (“DVA”), for the nine-month period ended September 30, 2011, the presentation of which is required according to the standards issued by Brazilian Securities and Exchange Commission - CVM applicable to the preparation of the Quarterly Financial Information (ITR) and as supplemental information for IFRS that do not require a presentation of DVA. This information was submitted to the same review procedures described above and, based on our review, we are not aware of any facts that would lead us to believe that these statements were not fairly presented, in all their material respects, in relation to the individual and consolidated interim financial statements taken as a whole.

The accompanying financial statements have been translated into English for the convenience of readers outside Brazil.

Rio de Janeiro, October 26, 2011

DELOITTE TOUCHE TOHMATSU	John Alexander Harold Auton
Auditores Independentes	Engagement Partner
CRC No. 2SP 011.609/O-8 “F” RJ	CRC No. 1RJ 078.183/O-2

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

BALANCE SHEETS AS OF SEPTEMBER 30, 2011 AND DECEMBER 31, 2010
(Amounts in thousands of Brazilian reais – R$)

	Note	Parent Company (BR GAAP)		Consolidated (IFRS and BR GAAP)
ASSETS		9/30/2011	12/31/2010	9/30/2011	12/31/2010


CURRENT ASSETS
Cash and cash equivalents	5	4,366	74,553	259,377	387,803
Restricted cash	5	-	-	4,946	-
Accounts receivable	6	-	-	348,182	176,302
Recoverable taxes	7	882	922	24,776	7,133
Dividends receivable	-	-	24,884	-	-
Prepaid expenses and other assets	9	20	-	45,372	30,835
Total current assets		5,268	100,359	682,653	602,073

NON-CURRENT ASSETS
Court deposits	19	-	-	141,724	93,865
Financial investments held to maturity	5	52,551	48,659	93,692	69,869
Restricted cash	5	-	-	30,640	2,013
Recoverable taxes	7	4,830	5,056	15,392	10,383
Deferred taxes	8	-	-	138,408	64,269
Debentures and promissory notes	14	76,580	-	-	-
Credits receivable - related parties	33	-	-	10,253	9,485
Prepaid expenses and other assets	9	-	-	5,196	2,573
Investment in subsidiaries	10	346,611	316,948	-	-
Property, plant and equipment	11	-	-	572,379	405,873
Goodwill on investments	12	80,477	49,081	338,075	49,081
Other intangible assets	13	-	-	238,409	69,073
Total non-current assets		561,050	419,744	1,584,168	776,484
TOTAL ASSETS		566,318	520,103	2,266,821	1,378,557

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

BALANCE SHEETS AS OF SEPTEMBER 30, 2011 AND DECEMBER 31, 2010
(Amounts in thousands of Brazilian reais – R$)

	Note	Parent Company (BR GAAP)		Consolidated (IFRS and BR GAAP)
LIABILITIES		9/30/2011	12/31/2010	9/30/2011	12/31/2010


CURRENT LIABILITIES
Loans and financing	15	-	-	162,180	64,873
Debentures and promissory notes	14	-	-	335,328	-
Suppliers	-	118	22	96,641	83,160
Payroll and related charges	16	175	81	407,752	230,569
Financial leasing obligations	17	-	-	390	4,277
Taxes payable	18	41	11	50,757	43,093
Dividends payable	-	8,636	28,959	8,638	28,959
Transfer to shareholders	-	26,135	26,374	26,135	26,374
Contingent consideration	34	5,184	-	10,130	-
Other liabilities	20	-	-	21,531	23,171
Total current liabilities		40,289	55,447	1,119,482	504,476

NON-CURRENT LIABILITIES
Loans and financing	15	-	-	399,166	317,994
Provisions	19	-	-	131,669	88,266
Financial leasing obligations	17	-	-	1,143	-
Taxes payable	18	-	-	5,287	-
Contingent consideration	34	40,501	45,685	75,474	45,685
Deferred taxes	8	-	-	45,315	-
Other liabilities	20	-	-	984	1,165
Total non-current liabilities		40,501	45,685	659,038	453,110

TOTAL LIABILITIES		80,790	101,132	1,778,519	957,586

CAPITAL AND RESERVES
Capital stock	21.1	258,329	223,873	258,329	223,873
Capital reserve	22.1	101,658	14,731	101,658	14,731
Profit reserves	22.2	118,329	118,329	118,329	118,329
Treasury shares	23	(10,636)	(12,147)	(10,636)	(12,147)
Foreign currency equity translation reserve	22.3	10,115	(46)	10,115	(46)
Retained earnings	-	7,733	-	7,733	-
Proposal for distribution of additional dividend	-	-	74,231	-	74,231
Shareholders' equity attributable to the owners of parent company		485,528	418,971	485,528	418,971

Non-controlling interest	24	-	-	2,773	2,000

Total shareholders' equity		485,528	418,971	488,301	420,971

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		566,318	520,103	2,266,821	1,378,557


The notes are an integral part of the financial statements

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

INCOME STATEMENTS FOR THE PERIODS ENDED SEPTEMBER 30, 2011 AND 2010
(Amounts in thousands of Brazilian reais – R$)

	Note	Parent Company (BR GAAP)		Consolidated (IFRS and BR GAAP)		Parent Company (BR GAAP)		Consolidated (IFRS and BR GAAP)
		Nine-month period ended		Nine-month period ended		Quarter ended		Quarter ended
		9/30/2011	9/30/2010	9/30/2011	9/30/2010	9/30/2011	9/30/2010	9/30/2011	9/30/2010


Continued operations
Net operating revenue	25	-	-	2,204,851	1,759,560	-	-	874,368	618,174

Cost of services rendered	27	-	-	(1,930,035)	(1,498,686)	-	-	(761,286)	(521,203)

Gross operating income		-	-	274,816	260,874	-	-	113,082	96,971

Operating income (expenses)
Selling	27	-	-	(25,472)	(19,051)	-	-	(8,497)	(6,720)
General and administrative	27	(3,799)	(2,174)	(165,707)	(97,860)	(1,843)	(619)	(73,895)	(35,733)
Share-based payments	27	(4,287)	(573)	(4,287)	(573)	(1,217)	(229)	(1,217)	(229)
Equity income	10	17,878	71,322	-	-	(2,303)	23,086	-	-
Financial revenues	27	11,747	8,272	29,374	21,976	4,168	3,465	9,309	7,979
Financial expenses	27	(955)	(230)	(55,346)	(21,920)	(415)	(11)	(29,609)	(8,426)
Other operating expenses, net	27	(102)	(35)	(25,506)	(18,975)	(46)	-	(11,994)	(6,541)
		20,482	76,582	(246,944)	(136,403)	(1,656)	25,692	(115,903)	(49,670)

Operating income (loss) before income tax and social contribution		20,482	76,582	27,872	124,471	(1,656)	25,692	(2,821)	47,301

Income tax and social contribution:
Current	28	(2,325)	(1,370)	(20,756)	(51,920)	(616)	(738)	(11,890)	(23,098)
Deferred	28	-	(595)	11,814	2,432	-	(324)	12,720	654

Net income (loss) for the period deriving from continued operations		18,157	74,617	18,930	74,983	(2,272)	24,630	(1,991)	24,857

Discontinued operations
Loss for the period deriving from discontinued operations	29	(10,424)	(40)	(10,424)	(40)	(5,312)	(40)	(5,312)	(40)

Net income (loss) for the period		7,733	74,577	8,506	74,943	(7,584)	24,590	(7,303)	24,817

Income attributable to:	30
Owners of the parent company
Net income (loss) for the period deriving from operations		18,157	74,617	18,157	74,617	(2,272)	24,630	(2,272)	24,630
Net loss for the period deriving from discontinued operations		(10,424)	(40)	(10,424)	(40)	(5,312)	(40)	(5,312)	(40)
		7,733	74,577	7,733	74,577	(7,584)	24,590	(7,584)	24,590

Non-controlling interest
Net income for the period deriving from continued operations		-	-	773	366	-	-	281	227
		-	-	773	366	-	-	281	227

		7,733	74,577	8,506	74,943	(7,584)	24,590	(7,303)	24,817
Earnings (loss) per share:	30
From continued and discontinued operations
Basic
Common shares (centavos per share)		0.3312	3.2719	0.3642	3.2880	(0.3248)	1.0788	(0.3128)	1.0888
Preferred shares (centavos per share)		0.2051	2.0331	0.2256	2.0431	(0.2012)	0.6704	(0.1937)	0.6766
Diluted
Common shares (centavos per share)		0.3288	3.2352	0.3616	3.2510	(0.3224)	1.0667	(0.3105)	1.0766
Preferred shares (centavos per share)		0.2051	2.0331	0.2256	2.0431	(0.2012)	0.6704	(0.1937)	0.6766


From continued operations
Basic
Common shares (centavos per share)		0.7776	3.2737	0.8106	3.2898	(0.0973)	1.0806	(0.0853)	1.0906
Preferred shares (centavos per share)		0.4816	2.0342	0.5021	2.0442	(0.0603)	0.6715	(0.0528)	0.6777
Diluted
Common shares (centavos per share)		0.7719	3.2369	0.8048	3.2528	(0.0966)	1.0685	(0.0847)	1.0783
Preferred shares (centavos per share)		0.4816	2.0342	0.5021	2.0442	(0.0603)	0.6715	(0.0528)	0.6777

The notes are an integral part of the financial statements.

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE PERIODS ENDED SEPTEMBER 30, 2011 AND 2010
(Amounts in thousands of Brazilian reais – R$)


			Profit Reserves			Foreign currency equity translation reserve		Proposal for distribution of additional dividends	Shareholders' equity attributable to the owners of the parent company (BR GAAP)		Consolidated shareholders' equity (IFRS and BRGAAP)
	Capital Stock	Capital Reserve	Legal Reserve	Statutory Reserve	Treasury shares	Foreign currency equity translation reserve	Retained earnings	Proposal for distribution of additional dividends		Non-controlling interest	Consolidated shareholders' equity (IFRS and BRGAAP)

Balance on December 31, 2009	223,873	19,639	21,907	87,924	(10,686)	-	-	59,403	402,060	1,445	403,505

Acquisition of own shares	-	-	-	-	(20,537)	-	-	-	(20,537)	-	(9,282)
Sale of own shares	-	-	-	-	17,564	-	-	-	17,564	-	17,564
Dividends	-	-	-	-	-	-	-	(59,403)	(59,403)	-	(59,403)
Equity instruments for share-based payments:									-
2007 Plan	-	573	-	-	-	-	-	-	573	-	344
Surplus value of realized equity instrument	-	(6,578)	-	-	-	-	-	-	(6,578)	-	(6,578)
Net income for the period	-	-	-	-	-	-	74,577	-	74,577	365	50,126

Balance on September 30, 2010	223,873	13,634	21,907	87,924	(13,659)	-	74,577	-	408,256	1,810	396,276



Balance on December 31, 2010	223,873	14,731	27,332	90,997	(12,147)	(46)	-	74,231	418,971	2,000	420,971

Capital stock increase	34,456	-	-	-	-	-	-	-	34,456	-	34,456
Capital reserve	-	83,642	-	-	-	-	-	-	83,642	-	83,642
Acquisition of own shares	-	(1,002)	-	-	1,511	-	-	-	509	-	509
Exchange rate difference when translating operations abroad	-	-	-	-	-	10,161	-	-	10,161	-	10,161
Dividends	-	-	-	-	-	-	-	(74,231)	(74,231)	-	(74,231)
Equity instruments for share-based payments:
2010 Plan	-	4,287	-	-	-	-	-	-	4,287	-	4,287
Net income for the period	-	-	-	-	-	-	7,733	-	7,733	773	8,506

Balance on September 30, 2011	258,329	101,658	27,332	90,997	(10,636)	10,115	7,733	-	485,528	2,773	488,301



The notes are an integral part of the financial statements.

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIODS ENDED SEPTEMBER 30, 2011 AND 2010
(Amounts in thousands of Brazilian reais – R$)

	Note	Parent Company (BR GAAP)		Consolidated (IFRS and BR GAAP)		Parent Company (BR GAAP)		Consolidated (IFRS and BR GAAP)
		Nine-month period ended		Nine-month period ended		Quarter ended		Quarter ended
		9/30/2011	9/30/2010	9/30/2011	9/30/2010	9/30/2011	9/30/2010	9/30/2011	9/30/2010

Net income for the period		7,733	74,577	8,506	74,943	(7,584)	24,590	(7,303)	24,817

Other comprehensive income:
Exchange rate difference when translating operations abroad:
Exchange rate differences in the period	22	10,161	-	10,161	-	6,153	-	6,153	-
		17,894	74,577	18,667	74,943	(1,431)	24,590	(1,150)	24,817

Total comprehensive income for the period		17,894	74,577	18,667	74,943	(1,431)	24,590	(1,150)	24,817

Total comprehensive income attributed to:
Owners of the parent company		17,894	74,577	18,667	74,943	(1,431)	24,590	(1,150)	24,817
Non-controlling interest		-	-	(773)	(366)	-	-	(281)	(227)
		17,894	74,577	17,894	74,577	(1,431)	24,590	(1,431)	24,590

The notes are an integral part of the financial statements.

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

CASH FLOW STATEMENTS FOR THE PERIODS ENDED SEPTEMBER 30, 2011 AND 2010
(Amounts in thousands of Brazilian reais – R$)

	Parent Company (BR GAAP)		Consolidated (IFRS and BR GAAP)
	Period ended		Period ended
	9/30/2011	9/30/2010	9/30/2011	9/30/2010

CASH FLOW FROM OPERATING
ACTIVITIES

Net income for the period from continued operations	18,157	74,617	18,157	74,617
Net income (loss) before income taxes deriving from				-
discontinued operations	(10,424)	(40)	(10,424)	(40)
Net Income adjustments:
Depreciation and amortization	-	-	110,290	90,530
Equity income	(7,454)	(71,282)	-	-
Losses on the sale of property, plant and equipment	-	-	-	(73)
Expenses with provision for contingencies	-	-	19,085	21,449
Deferred income tax	-	590	(11,811)	(4,008)
Net gain (loss) with monetary variation, net	(3,896)	-	2,928	(975)
Recognized expenses from share-based payments settled with equity instruments	4,287	573	4,287	573
Interest expenses (income) on loans and financing	(3,464)	-	37,816	14,211
Non-controlling interest	-	-	773	364

Changes in current capital:
Accounts receivable	-	-	(5,505)	(30,982)
Prepaid expenses	(21)	(23)	15,271	(2,644)
Recoverable taxes	1,060	(73)	(9,369)	(27,131)
Other assets	-	-	(23,828)	(7,375)
Payroll and related charges	95	27	80,639	67,564
Suppliers	96	(139)	(34,794)	(10,422)
Taxes payable	30	(255)	(19,704)	20,971
Other liabilities	(239)	10,113	(4,738)	(11,335)
Interest on loans and financing	-	-	(53,859)	(14,544)

Net cash from (used in) operating
activities	(1,773)	14,108	115,214	180,750

CASH FLOW FROM INVESTMENT
ACTIVITIES

Acquisition of investment, net of acquired cash	-	-	(199,909)	(20,019)
Payments received from sale of property, plant and equipment	-	-	-	96
Acquisition of property, plant and equipment	-	-	(115,136)	(106,681)
Court deposits	-	-	(28,599)	(28,512)
Financial investments held to maturity	-	(20,959)	(18,000)	(38,333)
Debentures	(73,910)	-	-	-
Restricted cash	-	-	(29,390)	(2,006)
Dividends received	100,087	131,347	-	-

Net cash from (used in) investment
activities	26,177	110,388	(391,034)	(195,455)

CASH FLOW FROM FINANCING
ACTIVITIES

Payment of commercial leasing	-	-	(4,290)	(8,068)
BNDES loan	-	-	147,504	69,990
Payment of BNDES loan	-	-	(40,778)	-
Loan raised (Allus Group)	-	-	36,048	-
Payment of loan (Allus Group)	-	-	(26,266)	-
Payment of loan (Dedic Group)			(177,233)	-
Debentures	-	-	100,000	-
Promissory note			230,000	-
Dividends paid	(95,100)	(88,998)	(95,100)	(88,998)
Shares buyback	-	(20,536)	(23,000)	(20,536)
Sale of shares	509	10,986	509	10,986

Cash used in (invested in) financing activities	(94,591)	(98,548)	147,394	(36,626)

Net increase (decrease) in cash and cash equivalents	(70,187)	25,948	(128,426)	(51,331)

Cash and cash equivalents at the beginning of the period	74,553	47,136	387,803	357,853
Cash and cash equivalents at the end of the period	4,366	73,084	259,377	306,522

Items not affecting cash:
Additional information:
Income tax and social contribution paid


The notes are an integral part of the financial statements.

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

STATEMENTS OF VALUE ADDED FOR THE PERIODS ENDED SEPTEMBER 30, 2011 AND 2010


	Parent Company (BR GAAP)		Consolidated (IFRS and BR GAAP)
	9/30/2011	9/30/2010	9/30/2011	9/30/2010

Revenues
From services	-	-	2,379,787	1,897,794
Non-deductible loss write-off	-	-	(767)	-
Other revenue	-	-	307	217
	-	-	2,379,327	1,898,011
Inputs from third parties
Cost of services rendered	(101)	(35)	(23,694)	(43,674)
Material, electricity and outsourced services	(2,563)	(885)	(303,301)	(227,615)
Loss /recovery of asset value	-	-	-	39
	(2,664)	(920)	(326,995)	(271,250)

Gross value added	(2,664)	(920)	2,052,332	1,626,761

Depreciation and amortization	-	-	(110,290)	(90,530)
Net added value generated by the company	(2,664)	(920)	1,942,042	1,536,231

Added value received in transfer
Equity income	7,454	71,282	-	-
Financial revenues	11,747	8,272	29,519	21,976
Total added value to distribute	16,537	78,634	1,971,561	1,558,207

Personnel
Payroll and charges	-	-	1,397,670	1,022,620
Training	-	-	21,029	13,463
Management fees	5,252	1,572	962	999
Taxes, fees and contributions
Federal taxes	2,798	2,244	311,151	281,827
Municipal taxes	-	-	83,507	72,110
Value distributed to providers of capital
Interest and monetary variations	692	172	49,750	19,342
Rentals	62	69	98,986	72,903
Value distributed to shareholders
Non-controlling interest	-	-	773	366
Retained earnings /Recording of reserves	7,733	74,577	7,733	74,577

Value-added distributed	16,537	78,634	1,971,561	1,558,207


The notes are an integral part of the financial statements.

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

Notes to the Quarterly Financial Information – ITR for the quarter and nine-month period ended September 30, 2011

(In thousands of reais, except when otherwise indicated)

CONTENTS OF NOTES TO THE FINANCIAL STATEMENTS

We present the accompanying notes, an integral part of the Quarterly Information - ITR of Contax Participações S.A. and its subsidiaries, distributed as follows:

1. General information

2. Main accounting policies

3. Main accounting judgment and sources of uncertainties in the estimates

4. New IFRS pronouncements and interpretations still not effective and not early adopted by the Group

5. Cash and cash equivalents, restricted cash and investments

6. Trade accounts receivable (Consolidated)

7. Taxes recoverable

8. Deferred taxes (Consolidated)

9. Prepaid expenses and other assets (Consolidated)

10. Investment in subsidiaries

11. Property, plant and equipment (Consolidated)

12. Goodwill on investments

13. Other intangible assets (Consolidated)

14. Debentures and promissory notes

15. Loans and financing (Consolidated)

16. Salaries, payroll charges and benefits

17. Finance leasing (Consolidated)

18. Taxes payable

19. Provisions (Consolidated)

20. Other liabilities (Consolidated)

21. Capital

22. Reserves and equity valuation adjustments

23. Treasury shares

24. Non-controlling interest

25. Revenue from continued operations (Consolidated)

26. Operating segments

27. Information on the nature of costs and expenses recognized in the income statement

28. Income tax and social contribution

29. Discontinued operation

30. Earnings (loss) per share

31. Financial instruments

32. Share-based payments

33. Related party transactions

34. Business combinations

35. Insurance coverage

36. Commitments (Consolidated)

37. Subsequent events

38. Approval of the quarterly financial information - ITR

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

Notes to the Quarterly Financial Information – ITR for the quarter and nine-month period ended September 30, 2011

(In thousands of reais, except when otherwise indicated)

1. INFORMATION

Contax Participações S.A. (the "Company"), established In July 2000, is a publicly-held company, listed in the BM&FBovespa, whose registered corporate purpose is to hold interests in other commercial enterprises and civil societies as a partner, shareholder or quotaholder in Brazil or abroad. The Company is headquartered at Rua do Passeio n^o 48 a 56 (Parte), Centro – Rio de Janeiro – RJ.

The Company has (i) Contax S.A., Ability Comunicação Integrada Ltda. and Mobitel S.A., as direct subsidiaries, and (ii) TODO Soluções em Tecnologia S.A., BRC Empreendimentos Imobiliários Ltda, and Contax Sucursal Empresa Extranjera, Contax Colômbia S.A.S, Stratton Spain S.L. and GPTI Tecnologia da Informação S.A. as indirect subsidiaries. The Company and its subsidiaries are jointly referred to in this Quarterly Financial Information as “Company” or “Group”. The operations of the direct and indirect subsidiaries are as follows:

1.1. Operations of Contax S.A.’s direct and indirect subsidiaries

1.1.1. Contax S.A. (“Contax”) was established in December 2002, after changing the corporate name of the extinguished TNext S.A., an entity established in August 1998. Contax is a privately held company, whose corporate purpose is to provide tele-assistance services in general, offering a variety of integrated customer-consumer relationship services, including telemarketing operations, customer services, customer retention, technical support and bill collection through a variety of communication channels, including telephone contacts, internet access, e-mail, fax, development of technological solutions related to tele-assistance services, among others.

1.1.2. Ability Comunicação Integrada Ltda.

In September 2010, Contax acquired the entire control of Ability Comunicação Integrada Ltda. (“Ability”). Incorporated in June 2001, Ability is a limited liability company whose purpose is to provide services related to publicity and advertising, sales promotion, merchandising and marketing, campaign and publicity planning, publicity consulting, market and public-opinion research, among others.

1.1.3. Mobitel S.A.

On July 1, 2011, the Company took over Mobitel S.A. (“Dedic”) by merging its shares. Dedic, incorporated in November 1991, is a privately held company, whose corporate purpose is to provide tele-assistance services in general, offering a variety of integrated customer-consumer relationship services, including telemarketing operations, customer services, customer retention, technical support and bill collection through a variety of communication channels, including telephone contacts, internet access, e-mail, fax, development of technological solutions related to tele-assistance services, among others.

1.1.4. TODO Soluções em Tecnologia S.A.

TODO Soluções em Tecnologia S.A. (“TODO”), established in September 2008, is a privately held company, whose corporate purpose is to provide information technology services, software development and integrated, full and customized solutions, including the full or partial management of the value chain of outsourced processes of business in general; back office processing; customer relationship management, among others.

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

Notes to the Quarterly Financial Information – ITR for the quarter and nine-month period ended September 30, 2011

(In thousands of reais, except when otherwise indicated)

1.1.5. BRC Empreendimentos Imobiliários Ltda.

In November 2009, Contax acquired BRC Empreendimentos Imobiliários Ltda. (“BRC”) for R$61. This acquisition aimed at separately developing and executing the real estate project included in the Selective Incentive Program for the adjacent region of Estação da Luz (“Nova Luz Program”), in the downtown area of the city of São Paulo.

1.1.6. Contax Sucursal Empresa Extranjera

Contax Sucursal Empresa Extranjera (“Contax Argentina”) was incorporated in September 2010 with an initial capital stock of R$817, in the city of Buenos Aires, Argentina. Contax Argentina’s corporate purpose is to provide tele-assistance services in general, offering integrated customer-consumer relationship services in Argentina.

In August 2011, the Company decided to discontinue Contax Argentina’s operational activities, a subsidiary incorporated in September 2010, in the city of Buenos Aires, Argentina. This operation was discontinued as it did not report the growth foreseen and required for an ongoing concern. The Group’s operations in Argentina will be maintained by Stratton Argentina S.A. (see Note 1.1.8).

1.1.7. Contax Colômbia S.A.S

Contax Colômbia S.A.S (“Contax Colômbia”) was incorporated on March 25, 2011, with initial capital of approximately R$1, in the city of Bogota, Colombia. Contax Colômbia’s purpose is to provide tele-assistance services in general, offering integrated customer-consumer relationship services in Colombia (Note 30).

1.1.8. Stratton Spain S.L.

In May 2011, Contax took over Stratton Spain S.L. (“Stratton Spain”), and its subsidiaries Allus Spain S.L., Stratton Argentina S.A., Stratton Peru S.A. and Multienlance S/A, the latter through its subsidiary Contax Colômbia, (which, jointly integrate “Allus Group”). Allus Group is one of the largest contact center service provider in Latin America, with 22 units distributed in Argentina, Colombia and Peru with business activity in the United States and Spain (Note 35).

1.1.9. GPTI Tecnologia da Informação S/A.

In July 2011, Contax took over GPTI Tecnologia da Informação S.A. ("GPTI"), through its parent company "Dedic.” GPTI was incorporated in May 2008 and is a privately held company, whose corporate purpose is to provide information technology services in general, complete and customized development of software and integrated solutions, including full or partial management of the value chain of outsourced business processes in general; back office processing; customer relationship management, among others.

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

Notes to the Quarterly Financial Information – ITR for the quarter and nine-month period ended September 30, 2011

(In thousands of reais, except when otherwise indicated)

1.2. Integration of the Company’s activities with Portugal Telecom, SGPS

On January 25, 2011, the Managements of Contax and Dedic, an entity controlled by Portugal Telecom, SGPS, and its subsidiary GPTI (jointly referred to as “Dedic GPTI”), as they operate in the same business segment and their activities, customer base and services are complementary, and they proposed to shareholders, subject to certain conditions, the integration of their activities aiming at, primarily, strengthening their market positions.

1.2.1. Dedic Share Merger into Contax

At the Extraordinary General Meeting held on July 1, 2011, Dedic Shares Merger was approved, pursuant to the Protocol and Justification for the Merger of Shares, and accordingly, Dedic became the Company’s wholly-owned subsidiary.

The Agreement for the Merger of Dedic Shares into Contax was executed, which, subject to certain conditions, provided for the summoning of these companies general meetings to resolve on the merger into Contax of shares issued by Dedic, accordingly, Contax’s capital increase which was determined based on the book value of Dedic shares, according to the equity valuation report issued by independent appraisers on May 7, 2011 (“Dedic Share Merger”). As a result of Dedic Share Merger, Contax issued new common and preferred shares which were received by the former shareholders of Dedic in replacement of Dedic shares then held thereby.

Contax’ Management contracted a fairness opinion, independently prepared by Banco BTG Pactual S.A. (“BTG Pactual”). According to the figures indicated in referred report, a swap ratio ranging between 0.0342 and 0.0417 for the common shares was pointed out and ranging between 0.0343 and 0.0418 for the preferred shares issued by Contax to each share issued by Dedic.

Based on this swap ratio range, the Managements of Contax and Dedic established a swap ratio of 0.0362 common share and 0.0363 preferred share issued by Contax for each share issued by Dedic. This swap ratio will be adjusted in view of eventual declaration of dividends, as well as in view of the assumption of debts by respective companies.

Pursuant to the CVM Guideline Report 35/2008, an independent special committee was set up (“Special Committee”), liable for analyzing, evaluating and resolving on the swap ratio, purpose of Dedic Shares Merger. The Special Committee concluded that the swap ratio of Dedic shares by the Company shares was appropriate and from the Company’s viewpoint, equitable for the merger of shares issued by Dedic.

1.2.2. Purchase and sale of shares issued by CTX Participações S.A.

On this same date, shareholders of CTX Participações S.A. (“CTX”), AG Telecom Participações S.A. (“AG Telecom”), L.F. Tel S.A. (“L.F. Tel”), Fundação Atlântico de Seguridade Social (“FASS”), Portugal Telecom SGPS and Portugal Telecom Brasil S.A. (jointly “Portugal Telecom”) reached an agreement to become shareholders of CTX in operations that resulted in the acquisition of 100% shares currently held by BNDES Participações S.A. - BNDESPAR (“BNDESPAR”), Caixa de Previdência dos Funcionários do Banco do Brasil - PREVI (“PREVI”), Fundação Petrobras de Seguridade Social – PETROS (“PETROS”) and Fundação dos Economiários Federais – FUNCEF (“FUNCEF”).

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

Notes to the Quarterly Financial Information – ITR for the quarter and nine-month period ended September 30, 2011

(In thousands of reais, except when otherwise indicated)

Through CTX Share Purchase Agreements executed on this date, between AG Telecom and L.F. Tel, on the one hand, and PREVI, PETROS and FUNCEF, on the other hand; between Portugal Telecom, on the one hand, and BNDESPAR, on the other hand and Portugal Telecom, on the one hand, and PREVI, PETROS and FUNCEF, on the other hand (“Purchase Agreements”), subject to certain conditions:

(i) AG Telecom and L.F. Tel acquired partial interest held by PREVI, PETROS and FUNCEF in CTX; and

(ii) Portugal Telecom acquired 100% interest held by BNDESPAR, besides remaining interest held by PREVI, PETROS and FUNCEF in CTX.

With the conclusion of operations provided for in the Purchase Agreement, AG Telecom and L.F. Tel now hold 36.80% interest each one in the capital stock of CTX, and Portugal Telecom became a direct holder of shares representing 16.21% of CTX’s capital stock.

On this same date, Shareholders’ Agreement was entered into between AG Telecom, L.F. Tel, Portugal Telecom and FASS (“Shareholders’ Agreement”), in replacement of prevailing agreements, which shall rule their relationship as shareholders of CTX.

1.2.3. Parent Company CTX partial acquisition of shares issued by Contax held by Portugal Telecom / Parent Company CTX’s capital increase

According to the Share Purchase Agreement executed on the same date, subject to certain conditions, including the approval of Dedic Share Merger, CTX partially acquired common and preferred shares issued by Contax received by Portugal Telecom as a result of Dedic Share Merger (“Acquisition of Contax Shares”).

In addition, on the same date, the Share Subscription Agreement of CTX was executed, through which Portugal Telecom, AG Telecom, L.F. Tel and FASS undertook, subject to certain conditions, to approve CTX’s capital increase to be subscribed by Portugal Telecom and FASS (“CTX’s Capital Increase”).

Due to the Acquisition of Contax Shares and CTX’s Capital Increase and taking into account the swap ratio of Contax and Dedic approved by the Independent Special Committee, Portugal Telecom now holds a direct interest of 19.90% in CTX’s capital stock and a direct and indirect interest of 19.52% in Contax’s capital stock, and FASS maintained its direct interest of 10.18% in CTX’s capital stock and an indirect interest of 3.48% in Contax’s capital stock.

1.2.4. Ownership structure after the operations mentioned above

After the conclusion of the aforementioned corporate operations, the ownership structure of Parent Company CTX and Contax is as follows:

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

Notes to the Quarterly Financial Information – ITR for the quarter and nine-month period ended September 30, 2011

(In thousands of reais, except when otherwise indicated)

(i) Ownership structure of CTX after the conclusion of the aforementioned operations:


Shareholder	Common shares	Common shares - %

AG Telecom	784,730,222	24.12
L.F. Tel	1,137,460,810	34.96
Luxemburgo Participações S.A.	352,730,588	10.84
FASS	331,151,534	10.18
Portugal Telecom	647,451,385	19.90
Directors	10	-
Total	3,253,524,549	100

(ii) Ownership structure of Contax (thousands of shares) after the conclusion of the aforementioned operations:


Shareholder	Common shares	Common shares - %	Preferred shares	Preferred shares - %	Total

CTX Participações S.A.	17,871	72.70	4,136	10.40	22,007
Portugal Telecom	0,000	0.00	2,782	7.00	2,782
Outstanding shares	6,695	27.30	32,800	82.60	39,495
TOTAL	24,566	100.00	39,718	100.00	64,284

1.3. New restricting rules on outsourced services

Currently, there is no specific legislation referring to outsourced services in Brazil. The Judiciary Branch has been discussing the issue through Precedent 331 of Labor Superior Court (TST), which authorizes the outsourcing of companies’ “ancillary activity”.

In 2009, the Regional Labor Court (TRT) of Minas Gerais rendered a decision against a wireless operator, forbidding it from outsourcing its contact center and telemarketing activities. Also on this matter, another wireless company filed a complaint at the Federal Supreme Court (STF), evidencing that subsequent law to TST Precedent 331 could not be revoked by it and that outsourcing in telecommunication operations is mentioned by laws in view of specialization and interests, including the national security interest, due to the nature of the activity performed.

In November 2010, the STF Justice who accepted this thesis in injunction deemed as legal the outsourcing of telecommunication operations.

Since there is no specific legislation on outsourced services, as well as labor relations deriving therefrom, and the lawmaker’s need of ratifying the concepts on this issue, the Legislative Branch found reasons to propose four (4) bills on this issue, three (3) of which are in progress at the National Congress and one (1) at the President’s Chief of Staff. New proposals establish restrictions on the outsourcing in several sectors, including contact center, thus, revealing a restricted scenario to the Company’s customers.

Labor court decisions and the enactment of eventual laws setting restrictions on the outsourcing will characterize a stricter scenario within the scope of services currently allowed. In addition, other government measures may affect the positioning of the Company’s current and potential customers, if outsourcing is not an option, thus, causing negative effects on its operations.

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

Notes to the Quarterly Financial Information – ITR for the quarter and nine-month period ended September 30, 2011

(In thousands of reais, except when otherwise indicated)

1.4. Net working capital

The consolidated financial information related to the quarter and nine-month period ended September 30, 2011 reflect the effects from the recent acquisitions, with the decrease in the Company’s cash and cash equivalents and accordingly, increase in current and non-current liabilities in view of the obligations assumed with said acquisitions. On September 30, 2011, the Company recorded consolidated negative net current assets in the amount of R$436,829 (consolidated positive net current assets of R$97,597 on December 31, 2010). The Management has been analyzing measures to extend its debt term and improve its current ratio.

2. MAIN ACCOUNTING POLICIES

2.1. Declaration of compliance

The Company's Quarterly Financial Information - ITR comprises:

• The consolidated financial information prepared pursuant to the International Financial Reporting Standards ("IFRS"), issued by the International Accounting Standards Board – IASB, and the accounting practices adopted in Brazil, referred to as Consolidated – IFRS and BR GAAP; and

• The individual financial information of the parent company, prepared pursuant to the accounting practices adopted in Brazil, referred to as Parent – BR GAAP.

The accounting practices adopted in Brazil comprise the practices included in the Brazilian Corporate Law, and in the Technical Pronouncements, Guidelines and Interpretations issued by the Brazilian Accounting Standards Board (CPC) and approved by the Brazilian Securities and Exchange Commission (CVM).

In the individual financial information, investments in subsidiaries are recorded using the equity accounting method, pursuant to the Brazilian law. Therefore, these separate financial statements are not considered to be in compliance with the IFRS, which require that such investments be reported at their fair value or cost in the parent company's separate financial statements.

As there is no difference between the consolidated shareholders' equity and the consolidated income attributable to shareholders of the parent company, included in the consolidated financial information prepared pursuant to the IFRS and the accounting practices adopted in Brazil, and the shareholders' equity and income of the parent company, included in the separate financial information prepared pursuant to the accounting practices adopted in Brazil, the Company has chosen to present the separate and consolidated financial information side by side.

2.2. Basis of preparation

The financial information has been prepared under the historical cost convention, except for certain financial instruments measured at fair value, as described below. The historical cost is usually based on the fair value of the consideration paid in exchange for assets.

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

Notes to the Quarterly Financial Information – ITR for the quarter and nine-month period ended September 30, 2011

(In thousands of reais, except when otherwise indicated)

In addition, no significant changes occurred in the accounting policies, in relation to those stated in the Note 3 to the Company’s annual financial statements for the year ended December 31, 2010.

2.3. Basis of consolidation

The consolidated financial information includes the financial statements of the Company and of its subsidiaries, on the same reporting date and under the same accounting practices. Control is obtained when the Company has the power to control the financial and operating policies of an entity in order to derive benefits from its activity.

Thus, the balance sheet, statements of income and comprehensive statements of income consolidation process corresponds to the sum of respective assets, liabilities, revenues and expenses, added by the following eliminations between the Parent Company and its direct or indirect subsidiaries: (I) interest in the capital stock, reserves, retained earnings/accumulated losses and investments, (ii) checking account balances and other assets and/or liabilities, (iii) material transactions effects, (iv) non-controlling interest and subsidiaries shareholders’ equity.

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

Notes to the Quarterly Financial Information – ITR for the quarter and nine-month period ended September 30, 2011

(In thousands of reais, except when otherwise indicated)

The results of subsidiaries acquired or sold during reporting periods are included in the consolidated statement of income and comprehensive income from the acquisition date through the disposal date, where applicable.

Whenever necessary, the financial information of the subsidiaries are adjusted to adapt their accounting policies to those determined by the Group. All transactions, balances, revenues and expenses among the companies included in the consolidated financial information (intragroup) are eliminated in full.

The Company’s financial information stated herein comprises the financial information of the following direct and indirect subsidiaries:



Tele-assistance services in general	Control	Interest

Contax	Direct	100%
Dedic	Direct	100%
Contax Argentina (discontinued operation)	Indirect	100%
Contax Colômbia	Indirect	100%
Stratton Spain	Indirect	100%


Trade marketing
Ability	Direct	100%

Information Technology
GPTI	Indirect	100%
TODO	Indirect	80%

Nova Luz Project
BRC	Indirect	100%

The figures of the balance sheets, as of September 30, 2011 and December 31, 2010 of the main items of the consolidated financial information of direct and indirect subsidiaries are shown in the chart below:

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

Notes to the Quarterly Financial Information – ITR for the quarter and nine-month period ended September 30, 2011

(In thousands of reais, except when otherwise indicated)


	Direct subsidiaries					Indirect subsidiaries
	Contax		Ability		Dedic	TODO		Contax Colombia	GPTI	Stratton Spain
	9/30/2011	12/31/2010	9/30/2011	12/31/2010	9/30/2011	9/30/2011	12/31/2010	9/30/2011	9/30/2011	9/30/2011

Assets:
Current	5,268	473,740	29,247	28,929	146,839	35,743	25,644	49,788	33,609	54,786
Non-current	561,050	647,590	36,518	34,598	225,809	7,704	5,789	224,272	3,783	26,965
Total assets	566,318	1,121,330	65,765	63,527	372,648	43,447	31,433	274,060	37,392	81,751

Liabilities:
Current	40,288	427,719	29,680	26,619	74,451	29,546	21,406	26,612	30,155	44,197
Non-current	40,501	402,286	4,698	10,438	250,122	38	27	29,962	59,337	8,541
Shareholder's equity	485,529	291,325	31,387	26,470	48,075	13,863	10,000	217,486	(52,100)	29,013
Total liabilities and shareholder's equity	566,318	1,121,330	65,765	63,527	372,648	43,447	31,433	274,060	37,392	81,751

The financial information referring to the balance sheets of indirect subsidiaries BRC, Contax Argentina (discontinued operation – see Note 29) has not been reported given their irrelevant balances.

The financial information referring to the statement of income of indirect and direct subsidiaries is disclosed in the attachments to the Quarterly Financial Information – ITR.

3. KEY ACCOUNTING JUDGMENTS AND SOURCES OF UNCERTAINTIES IN ESTIMATES

When applying the Group’s accounting policies (Note 2), Management must make judgments and prepare estimates regarding the book value of assets and liabilities that are not easily obtained from other sources.

Estimates and assumptions are continuously revised and are based on the track record experience and other factors, including expectations of future events deemed as reasonable for the circumstances. These estimates and assumptions may differ from actual results. Effects deriving from revisions of the accounting estimates are recognized in the revision period.

Relevant estimates and assumptions for the financial information are listed below:

3.1. Revenue recognition

The Group recognizes revenue on an accrual basis, when services are provided, except for certain performance-based services, which are recognized after measurement and acceptance by the customer. Most contract revenues are calculated based on indicators such as number of workstations, conversation time, and performance goals. Revenue is calculated based on information available in the Information Technology (IT) systems regarding the volume of data services provided to each customer. Revenues from performance-based services are calculated based on data available in the IT systems of the Company and of its customers. Additionally, we usually designate operations managers to revise, reconcile and discuss these indicators with customers. Some revenue adjustments are recorded after these discussions.

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

Notes to the Quarterly Financial Information – ITR for the quarter and nine-month period ended September 30, 2011

(In thousands of reais, except when otherwise indicated)

3.2. Held-to-maturity financial assets

Management has revised the Group’s financial assets in conformity with capital maintenance and liquidity requirements, and confirmed its intention and capacity to hold these assets to maturity. The book value of held-to-maturity financial assets is R$93,692 (R$69,869 on December 31, 2010). Details on these assets are mentioned in Note 31.

3.3. Operating Lease Commitments – Group as a Lessor

The Group has contracted commercial leases for computer equipment and furniture. The Group has determined, based on an assessment of the terms and conditions of the contracts that assumes all the significant risks and rewards of ownership of such assets; therefore, the Company accounts for the contracts as operating leases.

3.4. Impairment of goodwill

To determine if goodwill is impaired, it is necessary to estimate the value in use of the cash-generating unit goodwill was allocated to. The calculation of the value in use requires that Management estimates the future cash flow expected to be derived from the cash-generating unit, and the appropriate discount rate for the present value to be calculated.

The goodwill book value on September 30, 2011 is R$338,075 (R$49,081 on December 31, 2010).

3.4.1 Allocation of goodwill to the cash generating units

For the purposes of impairment test, the goodwill book value was allocated to the following cash generating units, as follows:

i. Tele-assistance services in general

The recoverable value of these cash generating units is based on the calculation of the value in use, employing cash flow projections based on five-(5) year financial budget approved by the Management, discount and growth rates as follows:

Cash generating units	Discount rate	Constant growth rate
Dedic	13.3% p.a.	10.4% p.a. *
Allus Colômbia (“Multienlace”)	11.4% p.a.	9.25% p.a.
Allus Peru (“Stratton Spain”)	12.5% p.a.	16.7% p.a.
Allus Argentina (“Stratton Spain”)	25.2% p.a.	16.6% p.a.

*Dedic’s constant annual growth rate is safe from tne expiration of certain agreements estimated in projections.

The cash flows referring to the tele-assistance services in general cash generating unit were extrapolated at the constant annual growth rates as per chart above. Management believes that any type of eventual reasonable change in key assumptions, in which the recoverable value is based, would not lead the book value to exceed total recoverable value of the respective cash generating unit mentioned above.

ii. IT services in general

The recoverable value of this cash generating unit (“GPTI") is based on the calculation of the value in use, employing cash flow projections based on five-(5) year financial budget approved by the Management and annual discount rate of 13.6%.

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

Notes to the Quarterly Financial Information – ITR for the quarter and nine-month period ended September 30, 2011

(In thousands of reais, except when otherwise indicated)

Cash flows referring to the IT services in general cash generating unit were extrapolated at a constant annual growth rate of 10.5%.

Management believes that any type of eventual reasonable change in key assumptions, on which the recoverable value is based, would not result in total book value exceed total recoverable value of this cash generating unit.

iii. Publicity and advertising services

The recoverable value of this cash generating unit is based on the calculation of the value in use, employing cash flow projections based on five-(5) year financial budget approved by the Management and annual discount rate of 16.6%.

Cash flows referring to the publicity and advertising services cash generating unit were extrapolated at a constant annual growth rate of 20%. Management believes that any type of eventual reasonable change in key assumptions, on which the recoverable value is based, would not result in total book value exceed total recoverable value of this cash generating unit.

Specifically in relation to goodwill due to future profitability in Ability equity interest (indefinite life intangible), the Management in August 2011, after completing one (1) year as of the date of its acquisition, carried out the impairment test and concluded that any recording of provision for goodwill impairment would not be necessary. Main assumptions the Company employed in this test are in line with those mentioned above for the “publicity and advertising” cash generating unit and compatible with results reported in the nine-month period ended September 30,2011, as described in Note 26.

3.5. Useful life of property, plant and equipment items

As described in Note 11, the Group revises the estimated useful life of property, plant and equipment items on a yearly basis, at the end of each reporting period.

3.6. Assessment of financial instruments

The Group uses assessment techniques that include information that is not based on observable market data to estimate the fair value of certain types of financial instruments. Note 31 provides further detail on the main assumptions used in the determination of the fair value of financial instruments, as well as the sensitivity analysis of these assumptions.

3.7. Non-Financial Assets Impairment Loss

An impairment loss occurs when the book value of an asset or cash-generating unit exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. The calculation of fair value less costs to sell is based on available information on sale transactions for similar assets or market prices less additional costs to dispose of such asset. The calculation of the value in use is based on the discounted cash flow model. Cash flows derive from the budget for the next 5 years and do not include reorganization activities the Group has not committed with yet, or significant future investments that will improve the asset base of the cash-generating unit being tested for impairment. The recoverable value is sensitive to the discount rate used in the discounted cash flow method, as well as to expected future cash flows to be received, and to the growth rate used for extrapolation purposes.

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

Notes to the Quarterly Financial Information – ITR for the quarter and nine-month period ended September 30, 2011

(In thousands of reais, except when otherwise indicated)

3.8. Share-based Payment Transactions

The Group measures the cost of share-settled transactions with executives based on the fair value of the equity instruments at the grant date. The estimated fair value of share-based payments requires that the most suitable assessment model be determined for the granting of equity instruments, which depends on the terms and conditions of the grant. This also requires that the most appropriate data be determined for the assessment model, including the expected life of the option, volatility and dividend yield, and the corresponding assumptions. The assumptions and models used to estimate the fair value of share-based payments are reported in Note 32.

3.9. Taxes

There are uncertainties regarding the interpretation of complex tax regulations and the value and timing of future taxable results. Given the long-term nature and the complexity of existing contracts, differences between the actual results and the assumptions adopted or future changes in such assumptions could require future adjustments to the tax income and expense already recorded. The Group records provisions, based on applicable estimates, for possible consequences of auditing by tax authorities of the respective jurisdictions where it operates. The amount of such provisions is based on several factors, such as prior experiences with fiscal audits and different interpretations of the tax regulations by the taxable entity and by the tax authority in question. Such differences in interpretation may arise for the most diverse matters, depending on the conditions in force in the respective domicile of the Group’s entities.

3.10. Deferred and recoverable income tax and social contribution

The Group records assets related to deferred taxes resulting from temporary differences between the book value of assets and liabilities and their tax bases. Deferred tax assets are recognized to the extent that the Group expects to generate sufficient taxable profit based on projections and forecasts prepared by Management. Such projections and forecasts include several assumptions regarding the Group’s performance, foreign exchange rates, volume of services, other rates and factors that may differ from current estimates.

Under the current Brazilian tax legislation, tax losses do not expire for utilization. However, cumulative tax losses can only be offset up to 30.0% of the annual taxable profit. For further detail on deferred taxes, please refer to Note 8.

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

Notes to the Quarterly Financial Information – ITR for the quarter and nine-month period ended September 30, 2011

(In thousands of reais, except when otherwise indicated)

3.11. Measurement at fair value of a contingent consideration

Contingent consideration in a business combination is measured at fair value on the date of acquisition as part of the business combination. If the contingent consideration is classified as a derivative, and, therefore, as a financial liability, it must be subsequently remeasured at fair value on the balance sheet date. The fair value is based on the discounted cash flow and the main assumptions take into account the probability of meeting each goal and the discount factor.

3.12. Provisions for Tax, Civil and Labor Risks

The Company is party in several legal and administrative proceedings, as described in Note 19. Provisions are recorded for all risks referring to the lawsuits that represent probable losses and which can be estimated with a certain degree of safety. The assessment on the probability of loss includes an analysis of available evidence, the hierarchy of laws, the available court precedents, the latest decisions of courts of law and their relevance in the legal system, as well as the opinion of external legal counsels. The Management believes that these provisions for tax, civil and labor risks are appropriately stated in the Quarterly Financial Information – ITR.

3.13. Provisions for payroll and related charges

Payroll and related charges are the most representative costs of the Group’s operations, and are calculated and accrued according to the payroll. Payroll and related charges include salaries, paid vacation, Christmas bonus (13^th salary), social charges, profit-sharing plan for employees, and taxes on payroll, most of which is determined by the Brazilian labor law.

The provision for paid vacation considers that each employee has the right to thirty (30)-day paid vacation per year, corresponding to 133.3% of the monthly salary. The Group accrues a monthly provision for paid vacation until the benefit is paid, i.e., when the employees use their vacation. A monthly provision equivalent to one twelfth (1/12) of the monthly salary of each employee is accrued in the 13^th salary provision until such benefit is paid. Benefits such as transportation and meal vouchers are recognized as expense on a monthly basis, when provided to employees.

The variable compensation plan paid to employees is based on the achievement of performance, financial and quality goals, and on individual goals of each employee, determined on a yearly basis. This provision is accrued on a monthly basis and recalculated at the end of the reporting period based on the best estimates of the goals met, as provided for in the annual budget. However, the final overall amount is only defined after being analyzed and approved by the Board of Directors.

3.14. Seasonality

The Group does not suffer seasonality in its operations.

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

Notes to the Quarterly Financial Information – ITR for the quarter and nine-month period ended September 30, 2011

(In thousands of reais, except when otherwise indicated)

4. NEW IFRS PRONOUNCEMENTS AND INTERPRETATIONS STILL NOT IN EFFECT AND NOT EARLY ADOPTED BY THE GROUP

4.1. Pronouncements, interpretations and amendments to the rules effective on September 30, 2011 and without any relevant effects on the Company’s financial information.
Interpretations and amendments to the following effective rules were issued and were effective on September 30, 2011, however, without any relevant effects on the Company’s Quarterly Financial Information (ITR):

Standard	Main requirements	Effective start date
Improvements to IFRSs - 2010	Amendment to several accounting pronouncements	Applicable to annual periods starting on or as of January 1, 2011
Amendments to IFRS 1	Restricted exemption referring to IFRS 7 comparative disclosures for first-time adopters	Applicable to annual periods starting on or as of July 1, 2010
Amendments to IAS 24	Related parties disclosures	Applicable to annual periods starting on or as of January 1, 2011
Amendments to IFRIC 14	Loan minimum requirement advance payments	Applicable to annual periods starting on or as of January 1, 2011
Amendments to IAS 32	Classification of issue rights	Applicable to annual periods starting on or as of February 1, 2010
IFRIC 19	Financial liabilities extinguishment through equity instruments	Applicable to annual periods starting on or as of July 1, 2010

4.2. Pronouncements, interpretations and amendments to current rules not in force yet and not early adopted by the Company.

Standards and amendments to current rules were published and are mandatory for the Company’s annual accounting periods starting on or as of January 1, 2012. Nevertheless, these standards and amendments to the rules have not been adopted in advance by the Company.

Standard	Main requirements	Effective start date
IFRS 9 (as amended in 2010)	Financial instruments	Applicable to annual periods starting on or as of January 1, 2013
Amendments to IFRS 1	Removal of fixed dates for IFRS first-time adopters	Applicable to annual periods starting on or as of July 1, 2011
Amendments to IFRS 7	Disclosures – transfers of financial assets	Applicable to annual periods starting on or as of July 1, 2011
Amendments to IAS 12	Deferred taxes – recovery of underlying assets when asset is measured by fair value model according to IAS 40	Applicable to annual periods starting on or as of January 1, 2012
IAS 28 (Revised in 2011) “Investments in Affiliated Companies and Shared Control Entities”	Revision of IAS 28 in order to include the amendments introduced by IFRS 10, 11 and 12	Applicable to annual periods starting on or as of January 1, 2013

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

Notes to the Quarterly Financial Information – ITR for the quarter and nine-month period ended September 30, 2011

(In thousands of reais, except when otherwise indicated)

IAS 27 (Revised in 2011), “Separate Financial Statements”	IAS 27 requirements related to the consolidated financial statements are replaced with IFRS 10. Separate financial statements requirements are maintained.	Applicable to annual periods starting on or as of January 1, 2013
IFRS 10 “Consolidated Financial Statements”	In replacement of IAS 27 in relation to the requirements applicable to the consolidated financial statements and SIC 12. IFRS 10 established a single consolidation model based on control, regardless of the nature of investment.	Applicable to annual periods starting on or as of January 1, 2013
IFRS 11 “Shared Agreements”	It removed the consolidation model proportional to shared control entities, only maintaining the model by the equity accounting method. It also removed the concept of “shared control assets”, only maintaining “shared control operations” and “shared control entities”.	Applicable to annual periods starting on or as of January 1, 2013
IFRS 12 “Interest in Other Entities Disclosures”	It increases disclosure requirements for entities which are or not consolidated over which entities have influence.	Applicable to annual periods starting on or as of January 1, 2013
IFRS 13 “Fair Value Measurements”	It replaces and consolidated all the guidance and requirements related to the fair value measurement contained in other IFRS pronouncements in a single pronouncement. IFRS 13 defines fair value, guides how to calculate fair value and disclosure requirements related to fair value measurement. However, it does not introduce any new requirements of amendment in relation to the items that should be measured at fair value, which remain in original pronouncements.	Applicable to annual periods starting on or as of January 1, 2013
Amendments to IAS 19 “Employee Benefits”	Removal of corridor approach, and actuarial gains or losses are recognized as other comprehensive income concerning pension plans and results of other long-term benefits, when incurred, among other amendments.	Applicable to annual periods starting on or as of January 1, 2013
Amendments to IAS 1 “Presentation of the Financial Statements”	It introduces the requirement that items recorded in other comprehensive income are separated and summed up among items which are and not are subsequently reclassified into profit and loss.	Applicable to annual periods starting on or as of January 1, 2013

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

Notes to the Quarterly Financial Information – ITR for the quarter and nine-month period ended September 30, 2011

(In thousands of reais, except when otherwise indicated)

Taking into account the Company's current operations, Management does not expect that these new standards, interpretations and amendments will have relevant effects on the financial information as of their adoption.

CPC has not issued yet respective pronouncements and amendments related to the new and revised IFRS previously presented. As a result of CPC’s and CVM’s commitment to keep updated the set of rules issued based on the updates of the International Accounting Standards Board - IASB, these pronouncements and amendments should be issued by CPC and approved by CVM until the date of their mandatory adoption.

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

Notes to the Quarterly Financial Information – ITR for the quarter and nine-month period ended September 30, 2011

(In thousands of reais, except when otherwise indicated)

5. CASH AND CASH EQUIVALENTS, RESTRICT CASH AND FINANCIAL INVESTMENTS

	Parent Company (BR GAAP)		Consolidated (IFRS and BR GAAP)
	9/30/2011	12/31/2010	9/30/2011	12/31/2010

Current:
Cash and banks ⁽ⁱ⁾	293	315	24,308	70,491
Restricted cash - Allus Group ^(v)	-	-	4,946	-
Financial investments ⁽ⁱⁱ⁾	4,073	74,238	235,069	317,312
Total current	4,366	74,553	264,323	387,803

Non-current:
Restricted cash - Ability ⁽ⁱⁱⁱ⁾	-	-	2,194	2,013
Restricted cash - Allus Group (v)	-	-	28,446	-
Long-term investments ^(iv)	52,551	48,659	93,692	69,869
Total non-current	52,551	48,659	124,332	71,882

(i) The amounts are held in a bank checking account given that the Company pays suppliers, taxes and payroll for accounts payable on the first day of each month.

(ii) The financial investments are immediately convertible into a known cash amount and are subject to an insignificant risk of changing value. These financial statements, mainly refer to bank deposit certificates paid at the variation of Interbank Deposit Certificate – (CDI).

(iii) As a partial guarantee to the payment of the additional price, as provided for in Ability’s Agreement, Contax offers all funds deposited in the secured account. The retained amount under the Agreement is invested in CDBs, paid at a weighted average rate of 99% of the CDI. On September 30, 2011, the balance of the restricted amount recorded in the non-current assets corresponded to R$2,194 (R$2,013 on December 31,2010), with maturity in August 2014 (Note 34.2).

The restricted amount deposited in a secured account will be released to the Seller in two annual installments (“annual release”), whereby (i) the first installment, due in the fourth year as of the Closing Date (August 16, 2010), will correspond to 50% of the amount resulting from the secured account, plus proportional earnings from the financial investments, and discounting the amounts corresponding to materialized contingencies (if applicable) and (ii) the second installment, due in the fifth year from the Closing Date, will correspond to the amount remaining in the secured account, after the release of the first installment, plus proportional earnings from the financial investment, and discounting the amounts corresponding to materialized contingencies (if applicable).

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

Notes to the Quarterly Financial Information – ITR for the quarter and nine-month period ended September 30, 2011

(In thousands of reais, except when otherwise indicated)

(iv) On September 30, 2011, the long-term investments, amounting to R$93,692 in the consolidated (R$69,869 on December 31, 2010) and R$52,551 in the parent company (R$48,659 on December 31,2010), are composed of bank deposit certificates (CDB), whose original maturities will be for the consolidated in 2014 (R$31,239) and in 2015 (R$44,064), and in 2016 (R$18,389) and in 2014 (R$31,239) and in 2015 (R$21,312) in the parent company and were acquired with the financial capacity and intention to be held in portfolio until maturity. These investments are valued by the acquisition cost, plus income earned against income for the year.

(v) As partial guarantee to the payment of additional price, as provided for in Allus Agreement, Contax offers total funds deposited in the secured account. The amount retained subject to the Agreement is invested in CDBs, yielded at 99% weighted average rate of CDI. On September 30, 2011, the balance of restricted amount recorded in current and non-current assets, corresponding to R$4,946 and R$28,446, respectively to mature within the next 36 months, with annual checks and 18 months according to the revenues deriving from services rendered to Telefônica or its affiliates by acquired companies (Note 34.1).

CONTAX PARTICIPAÇÕES S.A. AND SUBSIDIARIES

Notes to the Quarterly Financial Information – ITR for the quarter and nine-month period ended September 30, 2011

(In thousands of reais, except when otherwise indicated)

6. TRADE ACCOUNT RECEIVABLES (CONSOLIDATED)

		Consolidated (IFRS and BR GAAP)
		9/30/2011	12/31/2010
Customers
	Related parties	10,373	12,118
	Other customers (third parties)	337,809	164,184
		348,182	176,302

On September 30, 2011, out of balance of related parties accounts receivable, R$8,085 (R$3,886 on December 31, 2010) is payable by Brasil Telecom Fixa (Note 33).

Transactions with related parties account for 44% of the revenues from services rendered in the quarter ended September 30, 2011 (50% in the quarter ended September 30, 2010).

The breakdown of trade accounts receivable by maturity is shown below:

	Consolidated (IFRS and BR GAAP)
	9/30/2011	12/31/2010

Overdue	321,021	162,517
Overdue by 30 days	21,694	7,883
Overdue from 31 to 60 days	1,107	1,794
Overdue from 61 to 90 days	517	797
Overdue from 91 to 180 days	773	2,422

CONTAX HOLDING CO 6-K