TIM Brasil reports widening Q1 loss

7 May 2008

Brazilian telecoms group TIM Participacoes said its net losses for the three months to 31 March 2008 widened to BRL108 million (USD65 million) from BRL19.4 million in 1Q07, undermined by rising instances of non-payment and the impact of the delay in obtaining authorisation from Anatel to launch commercial 3G services. TIM Brasil ended March with 32.5 million mobile subscribers, up 23.7% year-on-year, while GSM coverage reached 92.8% of the urban population of the country, reaching 2,706 municipalities, up 10% compared to end-1Q07, BNamericas reports. TIM Brasil’s first-quarter net revenues were up 5.3% y-o-y to BRL2.99 billion, while EBITDA fell 19.4% from BRL664 million to BRL535 million, and the EBITDA margin dropped to 17.9% from 23.4%. In the wake of the Q1 results TIM has reduced its forecast for total net revenues in 2008, mainly due to the decrease in revenues from handsets. It now plans to increase revenues 9% over 2007 from the previously announced 12% forecast.

Brazil, TIM Brasil