TIM Brasil turns first profit in ’08 on subscriber gains

6 Nov 2008

Brazil’s third largest mobile operator by subscribers TIM Participacoes (TIM Brasil) reported its first net profit for 2008 in the third quarter ended 30 September, after adding more customers and keeping subscriber acquisition costs (SACs) down, Bloomberg reports. Net income was BRL22.5 million (USD10.6 million) for the period under review, reversing a net loss of BRL127 million in the same period of 2007. Revenues rose by 6.1% year-on-year to BRL3.36 billion, the Rio de Janeiro-based company said in a regulatory filing. TIM Brasil, backed by Italian heavyweight Telecom Italia, said it added a net six million new mobile users in the year to 30 September 2008, to raise its total to 35.2 million. The operator said it cut SACs from BRL129 to BRL110 as it cut handset subsidies. Pre-paid subscribers accounted for 81% of the user base at the end of the third quarter, up from 77% a year earlier.

Brazil, TIM Participacoes (TIM Brasil)