TIM Brasil reports four-fold rise in net profits; subscribers up 24.7%

4 May 2011

Brazilian mobile network operator TIM Brasil has booked a four-fold increase in net income for 1Q11, with profits reaching BRL213 million (USD134.6 million) in the first three months of the year, compared with BRL54.6 million in the corresponding year-earlier period. EBITDA climbed 9% to BRL1.03 billion thanks to a 51% reduction in SACs and lower handset subsidies. The cellco closed out 31 March 2011 with 52.8 million subscribers, up 24.7% year-on-year, thanks to 1.8 million net additions in January-March. The gains helped to drive revenues up 13.8% to BRL3.75 billion, bolstered still further by 32.3% growth in mobile data revenue to BRL640 million. TIM Brasil said its sales of smartphones have quadrupled in the last twelve months, SMS traffic is also up since it launched its new ‘Torpedo’ offer in February and it had more than 1.3 million unique daily users for data services in Q1 2011. Furthermore, voice traffic increased on an annualised basis as TIM reaped the rewards of various on-net tariff offers and MOU rose 27% y-o-y to an average 126 minutes per user, per month. However, increased penetration in the lower-value pre-paid user segment saw blended ARPU falling 13.5% to BRL20.8. First-quarter CAPEX of BRL297 million saw the cellco’s 3G signal coverage boosted to 56% of the population by 1 April; TIM has maintained its budget for full-year CAPEX of BRL2.9 billion.

Brazil, TIM Brasil