TIM’s Brazilian unit reports strong profits on mobile gains

27 Jul 2005

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.

Brazil, TIM Participaçoes