TIM Brasil reports 7.6% rise in 3Q revenue on solid subscriber growth

30 Oct 2013

Brazilian fixed and mobile carrier TIM Participacoes (TIM Brasil) has announced its results for the three months ending 30 September 2013, showing that total net revenue grew 7.6% year-on-year, reaching BRL5.083 billion (USD2.329 billion), while net service revenue climbed 2.6% to BRL4.207 billion. The company said that handset net revenues for the period under review totalled BRL876.4 million, up 40.9% on an annualised basis, driven by a better mix of smartphone sales (which now account for around 67% of total sales). Further, TIM Brasil booked ‘solid’ data revenue growth, up 21.5% y-o-y to BRL1.36 billion, again supported by strong take-up of smartphones/webphones, which now account for approximately 52% of the total base, it said.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) reached BRL1.252 billion in the third quarter, up 4.2% on Q3 2012; EBITDA margin was 24.6% and the carrier’s service margin (ex-handset business) was 30.5%. Net income was BRL315 million, down 15.6% from Q3 2012, although income for 9M13 was BRL1.007 billion (+2.1%). TIM Brasil reported 16.4% growth of its post-paid mobile base to 11.9 million users, noting too that voice usage (MOU) was up 8.4% y-o-y at 150 minutes per month, and blended ARPU reached BRL18.6 per month – up 2.6% quarter-on-quarter, but down 1.6% on a yearly basis. The total mobile base reached 72.9 million at 30 September, up 5% y-o-y. Subscriber acquisition costs (SAC) of BRL30.5 was lower than the BRL33.6 figure reported in Q3 2012. Quarterly CAPEX grew 52.3% y-o-y to around BRL1.2 billion, while on a year-to-date basis, CAPEX was up 16.8% y-o-y, totalling BRL2.8 billion.

TIM Brasil reported that Phase 1 of its fibre-to-the-site (FTTS) project is now 90% complete, with fibre-optics now available in 38 cities. Its Live TIM fibre broadband customer base reached 42,600 users, thanks to net additions of 16,200 clients in the quarter. Addressable households reached 881,000, an increase of 10% q-o-q.

Brazil, TIM Brasil