TIM subsidiary enjoys bumper year

13 Feb 2004

Brazilian mobile operator Tele Celular Sul (TCS), a wholly owned division of Telecom Italia Mobile (TIM), yesterday reported net profits of BAR120.8 million (USD41 million) for 2003, a rise of almost 84% over 2002 levels, thanks to reduced subscriber acquisition costs (SACs) and a healthy increase in average revenue per user (ARPU). Total net revenues at the Paraná-based operator rose by 22% to BAR1.08 billion, whilst operating profits soared by 94% to BAR180 million thanks to a 20% rise in overall customers at 2.06 million. Of the total, 1.52 million were pre-paid subscribers, up from 1.22 million, with post-paid accounts rising by just 25,000 to 534,000. Despite last year’s trend of falling ARPUs across the whole Brazilian market, TCS said its blended monthly ARPU increased by 5% to BAR40. The company attributed the rise to the Brazilian population’s propensity for value added mobile services such as SMS and ringtones. TCS’s average SAC decreased by 18% to BAR78 in 2003.