Brazil’s fourth largest wireless operator by subscribers TIM Participacoes (TIM Brasil) has reported a 67% slump in second-quarter profit, attributed to the impact of foreign exchange losses. The cellco’s net profits for the period fell to BRL101.39 million (USD58 million) in the April-June period, down from BRL312.98 million in the second quarter of 2009, TIM Brasil said in a securities filing. The operator’s pro forma results include the contribution of long-distance and data services provider Intelig which was fully consolidated in December 2009.
TIM, which is controlled by Telecom Italia, booked net financial losses (including debt servicing costs and revenue or losses from foreign exchange transactions) of BRL62.1 million, reversing a gain of BRL265.4 million a year ago. The Brazilian operator’s 2Q09 results were bolstered by a FOREX gain of BRL343 million as a result of ‘unhedged’ debt at Intelig, it said.