TIM Participacoes Misses In First Quarter Due To Poorer Interconnection

TIM Participações SA (TSU: US) reported sluggish first quarter results on Wednesday, before the markets opened. Sales of R$4.5 billion were down 3.3% year-over-year as poorer interconnection and usage revenues were not counterbalanced by data growth (increased by 21.8%). TIM Participações S.A. (TIMP3.SA) (NYSE: TSU) announces its 1Q15 results and invites you to join the Conference Call, scheduled for tomorrow at 10:00am – US EST.

Operational Highlights

Post-paid “Control Plan” posted a strong performance in 1Q15 with +23% YoY;
Data services came at 34 million users, +27% YoY and already 45% of total base;
Smartphones accounting for 90% of devices sold in 1Q15. Penetration of smartphone over total base reached 53%;
Data ARPU grew 29% YoY in 1Q15 (vs. 18% YoY in 1Q14);
Strong investments in Network & Infrastructure of around R$1 bln, largely financed by tower sales;
Live TIM reached 150k users in 1Q15, doubling versus 1Q14. Addressable households reached ~1.7 mln.

Financial Highlights

+3.5% of net revenues “Business Generated” (outgoing+VAS) versus 1Q14.
+46% YoY on gross data revenues (ex-SMS);
Fixed business recovered: Net Revenues at +12% YoY in 1Q15;
Costs under control, with total opex -5% YoY in 1Q15;
EBITDA margin 29.5%, continuing expand on a yearly basis (28% in 1Q14) and resilient EBITDA growth of 2% YoY in 1Q15.


Roger Gillespie, MBA, is research analyst and focuses Services, Technology and Energy & Utilities sectors. Prior joining Equities Mogul, Roger Gillespie worked with Telsey Research. If you have a great story idea for Roger Gillespie, you can write at [roger.gillespie@equitiesmogul.com ].


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