Brazil's TIM Posts Q2 Net Loss Shrinks

Brazil's TIM Participacoes has reported an improved second quarter loss of R$15.2 million (US$8.3 million), compared with a loss of R$66.3 million a year earlier. EBITDA rose by 15.5% to R$736 million, an EBITDA margin of 22.3%

Net subscriber additions in the quarter was 1.7 million (+34.9% YoY), reaching a total base of 37.8 million lines. On the number portability performance, post-paid and corporate segments have been showing a positive balance in the last two months. The gap between port-in and port-out came at the lowest level since the NP introduction and the operator expects to become overall positive in the coming quarters.

ARPU reached R$26.6 - increasing 2.1% QoQ and -11.0% YoY.

Revenues reached R$3,304 million (+3.7% YoY), still negatively impacted by 2008´s performance (i.e. loss of post-paid base and lower pre-paid promotions)

TIM Participações is a subsidiary of the Telecom Italia Group.

The Brazilian mobile market as a whole totaled 159.6 million lines in June, a growth of 19.9% on a yearly basis. The penetration rate reached 83.5% in the 2Q09, compared to 69.5% in the same period of 2008. Net additions of the quarter achieved 5.9 million (a decrease of 19.3% when compared to the 2Q08).

Posted to the site on 4th August 2009