Brazilian mobile operator TIM Participacoes reported net profits of BRL73.1 million (USD29.7 million) for the three months to 30 June, up 81% from BRL40.4 million in the second quarter of 2004. Net revenues climbed 19.6% to BRL791.4 million on the back of solid subscriber growth and higher usage of data services. TIM, which runs two privatised operators serving nine states in southern and north-eastern Brazil, ended June with more than 6.49 million customers, having added 1.69 million new users over the previous twelve months. The cellco said EBITDA rose 19.6% to BRL210.7 million, although its EBITDA margin remained flat at 29.3%. The rapid growth in its subscriber base, particularly among lower usage customers, had a negative effect on average revenue per user (ARPU) which dipped to BRL29.7 a month from BRL33.3 a year ago. The company also said it invested BRL139.6 million during the second quarter to continue work on expanding the GSM overlay for its antiquated TDMA network.