TIM profits R $ 619 million from better pre- and post-paid performance | Telecommunications

THE TIM Brasil released the financial results for the third quarter of 2019: the operator closed the period with normalized net income of R $ 619 million, an increase of 61.4% compared to the same period of the previous year. The positive results came from both the mobile and fixed segments, including prepaid, post and broadband internet TIM Live.

TIM Shopping Morumbi (photo by Edi Pereira)

TIM’s prepaid is more profitable and postpaid grows

THE recipe of the mobile service was R $ 3.9 billion, an increase of 2.8% over the same period last year. TIM’s strategic plan makes it clear that the operator will focus mainly on customers willing to spend more, instead of just attracting new consumers and gaining volume.

In total, the operator has a 24% market share, which corresponds to 54.5 million mobile lines. There was a 3% reduction in the customer base, mainly due to disconnections from prepaid, which fell 9.1% in one year. Meanwhile, the postpaid base (including control plans) grew by 8.2% in the same period.

O average spend (ARPU) of mobile customers grew by 5.6% and reached the R$ 23.90. The increase was possible due to prepaid, which grew 4% and reached R $ 12. In postpaid, excluding M2M, there was an increase of 0.9%, closing at R $ 44.10.

Increasing ARPU is difficult: Vivo has made plans to achieve this more expensive. TIM says that 60% of the total prepaid base is already in the TIM Pré Top plan. In postpaid, 50% of gross additions are from TIM Black Família plans, whose cheapest option costs R $ 269.99 for three lines.

TIM continues to be the leader of 4G coverage, which reaches 3,355 cities, of which 1,644 have a frequency of 700 MHz, 2,293 with 1.8 GHz and 288 with 2.1 GHz. More than 84% of the data travels over the 4G network, and more than 3.3 1,000 municipalities can use VoLTE technology for calls.

Broadband revenue TIM Live grows 31.5%

In fixed services, the operator had recipe of R $ 233 million. The TIM Live broadband service represents 54.3% of this revenue; its customer base grew 19.6% compared to last year.

O average spend (ARPU) of TIM Live is R $ 81.80, due to the penetration of offers with greater speed and price adjustment carried out in July 2019.

THE roof grew 150% over the same period last year and reaches 1.9 million households home passed. In the third quarter, the service reached three new cities: Diadema (SP), Feira de Santana (BA) and Recife (PE); it is expected to reach 16 more new cities by 2020.

With information: TIM Brasil.

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