TIM Brasil Q2 profit triples as subscribers top 55.5m mark

4 Aug 2011

Brazilian mobile operator TIM Participacoes (TIM Brasil), a unit of Telecom Italia, has reported a near tripling in net profits for the second quarter ended 30 June 2011, driven by a sharp rise in subscribers. The mobile carrier reported second-quarter net profit of BRL349.9 million (USD223 million), up from BRL125.9 million in Q2 2010, as net revenues increased to BRL4.25 billion from BRL3.5 billion previously. Operating costs fell to BRL608.8 million in April-June 2011, from BRL771.4 million a year ago and EBITDA climbed 12.7% year-on-year to BRL1.13 billion. TIM Brasil invested BRL719 million in its mobile operations in the second quarter of this year, up 38.2% compared to 2Q10.

TIM Brasil closed out June with 55.5 million mobile users, up 25% y-o-y, and putting it on a par in second spot with Telecom Americas (Claro), behind market leader Vivo Participacoes. The total number of mobile phones in Brazil rose to 217.3 million at the end of June, up 1.06% on the previous month. National regulator Anatel said that a total of 2.5 million net new subscriptions were added in June, compared with 2.3 million in May, although in June Anatel noted there was a fall in cancellations for existing users, when compared with May. Vivo, controlled by Spain’s Telefonica, ended June with a 29.47% market share, ahead of Claro and TIM Brasil – each with 25.55%. Fourth place was taken by Tele Norte Leste Participacoes (Oi) with a 19.1% share.

Brazil, TIM Participacoes (TIM Brasil)