TIM Brasil posts drop in 3Q10 net profit

1 Nov 2010

Brazilian mobile operator TIM Participacoes (TIM Brasil) has reported a fall in third-quarter net income for the period ended 30 September 2010, adversely impacted by the absence of non-recurrent gains which were booked in the third quarter of 2009. The telco, a unit of Telecom Italia (TI), booked third-quarter profits of BRL124.7 million (USD73 million) down from BRL194.9 million in the corresponding year ago period. The gains mentioned included BRL164.5 million from foreign exchange fluctuations at the company’s Intelig unit, BRL38.5 million in tax provisioning gains and a BRL30 million fiscal benefit. Meanwhile TIM Brasil’s net revenue climbed to BRL3.65 billion from BRL3.44 billion in 3Q09 as net operating costs dipped to BRL62 million, from BRL89 million for the year-ago quarter. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 19.6% to BRL924 million in the third quarter; the EBITDA margin ended the third quarter at 25.3%, up from 22.5% a year earlier. Subscribers climbed 18.5% year-on-year to 46.9 million as at 30 September 2010, with the unit’s president, Luca Luciani, forecasting 50 million subscribers by the end of the year. Luciani is banking on strong growth in Christmas season sales to help reach this goal.

Brazil, TIM Participacoes (TIM Brasil)