TIM Brasil: customers up strongly but net profit down

3 Aug 2012

Brazil’s TIM Participacoes (TIM Brasil), a unit of Telecom Italia, booked net profit of BRL346.8 million (USD169.7 million) for the three months ended 30 June 2012, compared to BRL350 million in the corresponding period of 2011, even as its subscriber base increased sharply by 24% year-on-year to 68.9 million lines, thanks to net additions of 1.7 million in April-June. The unit added that post-paid users increased by a net 48,000 new users in the second quarter to over ten million. Despite the post-paid subscriber gains, blended monthly ARPU fell 15.3% to BRL18.3 it said, and minutes of use (MOU) was stable at 127 minutes.

TIM Brasil booked net revenue of BRL4.54 billion in 2Q12, up 7% y-o-y from BRL4.25 billion a year earlier, and EBITDA increased 6% to BRL1.12 billion. EBITDA margin was unchanged at 26.7%. The cellco reported strong demand for its data-based services, with traffic here generating 40% annualised growth in data revenues to over BRL1.03 billion. TIM Brasil’s 3G network covered 555 cities or 68% of the urban population at the end of June, and rollout will accelerate in 2H12; CAPEX in the first six months was BRL1 billion (+96% y-o-y).

Brazil, TIM Participacoes (TIM Brasil)