TSU Earnings Grow On Client-Base Growth

Tim Participacoes' net earnings spiked 65.8% in the fourth quarter, while net revenue grew 5.0%.
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Tim Participacoes SA

(TSU) - Get Report

reported on February 27, 2009 that its Q4 FY08 earnings spiked 65.8%, helped by steady client-base growth. Net profit increased to Brazilian Reais (R$) 299.62 million from R$180.73 million in Q4 FY07. The most recent consensus estimate was $0.05 per share.

Q4 FY08 net revenue grew 5.0% to R$3.54 billion from R$3.38 billion on growth in subscriber base and value-added services (VAS) revenue. Services revenue, accounting for 90.9% of net revenue, increased 4.0% to R$3.22 billion from R$3.10 billion. Handset revenue surged 16.5% to R$321.40 million from R$275.82 million due to a 14.0% increase in handset volumes and improved portfolio mix. Total subscriber base improved 24.5% to 150.60 million from 121.00 million. Market share declined 24.2% from 25.8% a year ago. Average revenue per user (ARPU) declined to R$29.90 from R$34.50 in the previous year's quarter, despite an increase in prepaid lines. Minutes of usage (MOU) declined to 86 from 106 and quarterly churn rate rose to 9.8% from 8.5% in Q4 FY07.

TSU launched a 3G iPhone with five plans, including an SMS and data package up to 1GB. The company introduced its Natal Bonus Tarifa Zero promotion with free tariff for on-net local calls (limited to 2,000 minutes), including a handset discount of up to R$2,009. The company also launched a Natal Tim Web program under its 3G mobile broadband service to offer unlimited data plans with discounts.

FY08 net income soared 163.8% to R$180.15 million from R$68.30 million. Annual net revenue increased 5.1% to R$13.08 billion from R$12.44 billion in FY07.