TIM Participacoes reports 22% rise in 1Q14 net income

9 May 2014

Brazilian fixed and wireless carrier TIM Participacoes (TIM Brasil) reported net income of BRL372 million (USD168.3 million) for the three months ended 31 March 2014, an increase of 21.6% from BRL306 million in the year-earlier period, although revenues dipped marginally to BRL4.702 billion from BRL4.711 billion over the same period. The group said the top-line figure was impacted by a government-led cut in mobile termination rates (MTRs). Earnings before interest, taxes, depreciation and amortisation (EBITDA) totalled BRL1.317 billion, up 8% year-on-year, with EBITDA margin at 28%. CAPEX for the first quarter stood at BRL613 million, on top of the BRL3.8 billion spent in FY2014, with more than 94% allocated to infrastructure. TIM Brasil reported that in 1Q14 it added a total of 111 new 3G sites (total 9,185), 208 4G sites (total 2,133) and 190 Wi-Fi hotspots (total 904).

Operationally speaking, TIM Brasil had a total of 73.9 million mobile subscribers at end-March 2014, up 3.8% y-o-y to consolidate its number two position in the market behind Telefonica (Vivo) with 78.5 million. Moreover, TIM said that in the January-March period, data users increased by 20% y-o-y to reach 36% of its total base, with 3G subscribers standing at 26.6 million – up 85% on the previous year. The cellco’s post-paid customer base was up 12% y-o-y (or 16% higher when stripping out dongles and M2M connections). Further, the carrier’s ‘Live TIM’ branded fibre broadband based totalled 75,000 at the end of 1Q14, up a net 14,700 in the quarter, as the addressable households passed moved past the 1.1 million mark. TIM said that in 2014 it intends to expand its fibre-to-the-site (FTTS) rollout to take in another 31 cities across Brazil.

Brazil, TIM Brasil