TIM Reports Its Earnings Release 3Q10


RIO DE JANEIRO, BRAZIL--(Marketwire - October 29, 2010) -  TIM Participações S.A. (BOVESPA: TCSL3) (BOVESPA: TCSL4) (NYSE: TSU) announces its 3Q10 results and invites you to join the Conference Call, scheduled for today (October 29th, 2010).

See below the main highlights:

  • Subscriber base grew 19% YoY, reaching 46.9 million lines in September, accompanied by an EBITDA growth of 20% and OFCF growth of 54% in the same period;

  • Recovering 2nd position in market share for pre-paid segment and confirming 2nd position in Revenues and EBITDA;

  • New plans Infinity and Liberty represent more than 75% of customer base. Pre-paid Infinity reached 32 million lines while post-paid segment Liberty/Infinity posted 3 million customers (+24% QoQ);

  • SAC decreased to R$59 (-30.6% YoY) reaching a new low -- reflecting efficiency on acquisition (SAC/ARPU ratio at 2.5x vs. 3.2x in the 3Q09);

  • MOU continues the upward trend this quarter -- at 123 minutes (+37.2% YoY) and a strong evidence of community based success. In 3Q10, ~90% of the traffic was concentrated within TIM's network;

  • Network quality at 100% for the 7th consecutive month according to Anatel. It's worth noting the lowest call drop metric ever at 0.60%;

  • Gross service revenues of R$4,736 million in the 3Q10, with growth of 9.3% YoY, driven by the outgoing voice revenues (+14.0% YoY);

  • OPEX slightly increased 2% yearly to R$2,724 million. Efficiency plan continues to play an important role to support commercial activities;

  • Bad debt at 2.0% of net service revenue reached the lowest level ever;

  • EBITDA reached R$924 million, a sound growth of 20% YoY and largely supported by the voice service contribution. EBITDA margin reached 25.3% (vs. 22.5% in the 3Q09);

  • Net Profit reached R$124.7 million in 3Q10 vs. R$101.4 million in 2Q10;

  • CAPEX grew 28% YoY in 9M10, reaching R$1,475 million, focused on 3G roll-out and 2G expansion and capacity.

  • Operating FCF at R$603 million in 3Q10 (+54% vs. R$392 MM in 3Q09), or ~17% of net revenues.

  • TIM was awarded the Latin America Wireless Service Provider of the year by the World Finance Magazine.

Contact Information:

Rogerio Tostes
TIM Participacoes S.A.
Investor Relations
Phone: +55 (21) 4009-3742
Email: rtostes@timbrasil.com.br
Website: www.tim.com.br/ir