TIM reverses loss in Q2, reports profits of USD18.4m

24 Jul 2007

Brazilian mobile operator TIM Brasil posted a net profit of BRL34 million (USD18.4 million) in the second quarter of 2007, reversing a loss of BRL239 million in the corresponding year earlier period. TIM Brasil, currently controlled by Telecom Italia, reported revenues of BRL4.23 billion, up 40% year-on-year, while EBITDA climbed 44.2% from BRL516 million to BRL744 million. The company’s EBITDA margin rose from 22.7% to 24.3%, although the second half performance could be affected by fierce competition, say local industry watchers. To minimise the impact of this, TIM may focus its efforts on signing up and retaining post-paid customers throughout the remainder of 2007.

TIM Brasil’s subscriber base reached 27.4 million at the end of June, up from 26.3 million at end-2Q06, equivalent to a market share of 25.8% (24.3% previously). Of the total, 21.4 million were pre-paid and six million were contract users. ARPU was BRL34.6 in the second quarter, up from BRL30.2 a year ago; churn was 9.7%, compared with 7.7% in the corresponding three months of 2006.

Brazil, TIM Brasil