THE TIM Brasil released the financial results for the second quarter of 2019 and the numbers were positive: it had normalized net income of R $ 423 million, representing an increase of 26% in relation to the same period of the previous year. The operator recorded growth on TIM Live’s fixed internet via optical fiber, as well as on postpaid lines; however, it lost customers on prepaid.
THE Net Revenue it also grew, but in a discreet manner: R $ 4.2 billion, 2.4% more than in the second quarter of 2014. Mobile services in pre and postpaid account for R $ 3.8 billion of this total ( increase of 1.9%); while revenue from fixed services, including TIM Live, corresponds to R $ 230 million (11.3% increase).
THE gross revenue grew 5.8%, exceeding net revenue. TIM explains that the increase in discounts given to customers is responsible for the difference. In addition, the operator states that the strategy of loyalty and intra-segment migration has affected the level of competition in the sector. O Capex (investment values) decreased 3.7%, reaching R $ 981 million in the period.
TIM loses customers in prepaid and grows in post
TIM suffered a setback in the number of customers: there were 56.5 million in the second quarter on the 2018 mobile base and now there are 54.9 million. The main responsible for disconnections is the prepaid service: there are 33 million customers, down 10%. However, the operator grew almost 12% in postpaid, which closed the period with 21.2 million customers.
A reduction in the customer base is normal, since consumer behavior has changed in recent years. With the arrival of unlimited calls to any operator and the migration of voice usage to data, it no longer makes sense for a single person to maintain two lines.
Operators take advantage of this to convert customers from prepaid to control and postpaid, which are more profitable for the amounts charged and especially for having a monthly commitment.
O ARPU (average monthly expenditure per user) for mobile services increased by 5.8% year-over-year, reaching R $ 23.20. In the prepaid segment, ARPU was R $ 11.60 (+ 2.9%), while postpaid decreased by 6.5% and reached R $ 37.10.
TIM expands 4G and VoLTE coverage to more cities
TIM expanded its 4G coverage: there are 3,321 covered municipalities, of which 3,325 have VoLTE technology enabled and 1,548 operate with the frequency of 700 MHz. 81% of the total volume of data trafficked at the operator occurred through the technology, representing an increase of 13% year on year. The 4G user base grew 16%, reaching 36.3 million customers and representing 71% of its voice base.
Therefore, TIM is a leader in municipalities covered with 4G technology and also with VoLTE. Recently, Vivo announced that the technology is present in just over 380 municipalities.
TIM Live reaches 5 more municipalities
TIM Live started commercial operations with FTTH technology, taking optical fiber to the customer’s home, in five new municipalities: Anápolis (GO), Camaçari (SP), Duque de Caxias (RJ), Francisco Morato (SP) and Franco da Rocha (SP). In total, the service is present in 19 cities.
The fixed internet customer base ended the quarter with 507 thousand customers, with an annual growth of almost 20%. There were 27 thousand accesses added in the quarter. O ARPU TIM Live was R $ 78.00, an increase of 7.8% year on year.
TIM incorporates Porto Seguro Conecta and sees jump in M2M
Porto Seguro Conecta ended, and TIM ended up absorbing the accesses of the virtual operator (MVNO). It had an important base of M2M terminals, which are connected devices such as vehicle trackers, card machines and other IoT applications.
As a result, TIM’s M2M base and data terminals grew 78% over the previous year and reached 3.3 million accesses. The operator’s financial statement did not disclose the ARPU (average expense) of M2M services.