TIM Brasil posts strong full year results

6 Mar 2008

TIM Participacoes, controller of mobile operators TIM Celular and TIM Nordeste, has posted net income of BRL76.1 (USD45.6 million) for 2007, reversing a BRL286 million loss in 2006. The strong performance comes on the back of a 22.7% hike in full year revenue to BRL12.4 billion, and a 17.8% rise in EBITDA to BRL2.9 billion. Operationally speaking, the company ended the year with 31.3 million subscribers, comfortably above its target of 29 million. Monthly ARPU during the fourth quarter, however, slipped 7% to BRL34.5, largely on account of new subscribers coming from poorer, rural areas. President Mario Cesar Pereira de Araujo said that he expects further slight declines in ARPU in 2008, but that it should recover over a three-year period as the company’s 3G services start to take hold. Pereira de Araujo would not reveal the CAPEX needed for 3G rollout but did say the company was forecasting a similar level in 2008 to that of 2007: BRL1.93 billion. Value added services accounted for 7.9% of TIM’s gross service revenues in 2007, a figure the company hopes to increase this to more than 10% by the end of 2008.

Brazil, TIM Participacoes (TIM Brasil)