TIM Group’s worldwide subscriber gains bolster profits

16 Feb 2004

Italy’s Telecom Italia Mobile (TIM) has released its preliminary financial results for 2003, reporting operational income of EUR3.79 billion, up 12.7% year-on-year, on revenues of EUR11.78 billion (EUR10.87 billion), thanks in the main to strong subscriber growth from its worldwide operations – especially Brazil. The contribution from international operations amounted to EUR2.35 billion, up by 18.4% on the previous year, with Brazil reporting a 23.5% leap in sales to EUR1.27 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at EUR5.5 billion, up from EUR5.04 billion in 2002. At the end of 2003 TIM Group had 44.5 million lines worldwide, a rise of 13.8% over the course of the year, with GSM operations in Brazil faring particularly well adding over two million subscribers during the year to end it with 2.7 million users (293,000). In its home market, TIM posted revenues of EUR9.47 billion, up from EUR9.02 billion a year earlier; gross operating profit reached EUR5.04 billion, from EUR4.4 billion, yielding an operating income of EUR3.86 billion (EUR3.15 billion). TIM ended the year as the dominant mobile operator in Italy with 26,076,000 subscribers, up 3.1% year-on-year, having added 725,000 new customers in the fourth quarter thanks to a successful Christmas campaign. The company said its total did not include 700,000 ‘silent’ or inactive lines, to better reflect the net contribution of active lines to the company’s business.