2024-02-07 00:40:16
© Reuters.
By Patricia Vilas Boas and Andre Romani
SÃO PAULO (Reuters) – The normalized net profit of TIM (BVMF:) Brazil rose 52.6% in the fourth quarter of 2023, to 900 million reais compared to the same period of the previous year, showed the results report released on Tuesday -fair.
The reported net profit more than doubled compared to the months of October to December 2022, reaching 1.1 billion reais.
The subsidiary of the European Telecom Italia recorded normalized earnings before interest, taxes, depreciation and amortization (EBITDA) of 3.15 billion reais in the period, growth of 7.5% compared to the last quarter of 2022, with a normalized EBITDA margin of 50 .2%, an increase of 0.3 percentage points year on year.
The telecommunications operator recorded normalized net revenue of 6.28 billion reais, up 6.8% on an annual basis, in a performance driven mainly by growth in revenue from TIM UltraFibra mobile and broadband services.
TIM Brasil’s mobile service revenue rose 7.6% year on year, to 5.7 billion reais, while fixed service revenue increased 1.6%, to 329 million reais, on the same basis of comparison.
The number of mobile users at the end of 2023 fell 2% year on year, to 61.2 million, reflecting a combined movement of growth in the postpaid base (+1.4% year on year), to 27.6 million of accesses, and prepaid decline (-4.6% year on year), to 33.6 million, stated TIM.
Still in the mobile segment, the normalized average monthly revenue per user (ARPU) reached 31.1 reais, an increase of 15.8% on an annual basis. “This result once again reinforces TIM’s focus on seeking greater monetization of its customer base in line with its strategy,” stated the company in a report.
In the fixed segment, TIM UltraFibra reached a customer base of 802 thousand connections at the end of last year, an annual growth of 12.1%.
Normalized operating costs and expenses totaled 3.13 billion reais in the fourth quarter, growth of 6.2% compared to the same period of the previous year, with a greater burden of expenses on interconnection lines.
GUIDANCE DISCLOSURE
TIM Brasil also released, separately, its strategic plan for the period from 2024 to 2026, announcing expected investments of between 4.4 billion and 4.6 billion reais this year, according to a relevant fact to the market.
The company predicts an increase of between 7% and 9% in Ebitda in 2024, compared to last year, and a growth of 5% to 7% in service revenue.
For its mobile phone line, its main business, the company stated that it projects a “continuous and sustainable improvement in the market” for the new three-year period.
According to the company, this improvement would be driven by: a new, more rational market dynamic with customers focused on value and quality; essentiality of the mobile service; opportunity to increase use with increased demand for data; and price accessibility.
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