Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____
Press Release
Fourth Quarter 2004
and Annual Results
Contacts |
Paulo Roberto Cruz Cozza Chief Financial Officer and Director of Investor Relations |
|
Joana Dark Fonseca Serafim Investor Relations (41) 9913-0006 / 312-6862 jserafim@timsul.com.br |
||
Leonardo Wanderley Investor Relations (81) 9923-0023 / (41) 312-6862 lwanderley@timsul.com.br |
||
Website http://www.timpartri.com.br |
Curitiba, February 2, 2005 TIM Participações S.A. (BOVESPA: TCLS3 and TCLS4; and NYSE: TSU), the holding company of TIM Sul S.A. and TIM Nordeste Telecomunicações S.A., announces its 4th quarter (4Q04) and 2004 annual results. TIM Participações S.A. provides cellular telecommunications services in the states of Paraná, Santa Catarina, Piauí, Ceará, Rio Grande do Norte, Paraíba, Pernambuco, Alagoas and the region of Pelotas (RS). The financial and operational information below, except when otherwise indicated, is presented on a consolidated basis and in Reals, according to the Brazilian Corporate Law.
TIM PARTICIPAÇÕES S.A.
ANNOUNCES ITS CONSOLIDATED RESULTS
FOR THE FOURTH QUARTER
AND 2004 ANNUAL RESULTS
Leader and Top of mind in the regions
GSM coverage reaches 85.7% of the urban population and leads in the acquisition of new customers
Success in the migration of TDMA to GSM: customized services and offers to each customer
Successful retention strategy maintains one of the lowest churn rates in the industry
146.7% increase in net additions and 33.8% in the customer base over 2003
7.9% expansion of the postpaid customer base in 2004
25.6% increase in the total gross revenue
Growth in ARPU in the 4Q04 over 3Q04
110.1% growth in the VAS (Value-Added Service) revenue
EBITDA of R$ 886.2 million - 10% above 2003
Efficient Subscriber Acquisition Cost (SAC): R$ 95.1 in 4Q04
Record-breaking investment in 2004: R$ 675.0 million
We started 2004 with confidence and fully aware of the challenges we faced, certain that we would progress in the deployment of our GSM network, enhancing the quality of our customer relations, pursuing new operating efficiency levels, focusing on tapping the group synergies and contributing to the development of our region. |
The commitments made in 2004 were fulfilled. The GSM network was deployed in record time and the coverage already reaches 599 cities. It is currently the customers technology of choice. |
In 2004 we achieved significant growth, adding 1,4 million customers to our base, maintaining the ARPU above the Brazilian average. |
We faced accelerated growth and fierce competition in the South and Northeast Regions, but we kept the leading position in our regions. This is the result of our segmented, customized customer relations strategy. Our brand remains Top of Mind in both regions. |
Our churn rate is below the Brazilian average, the gross revenue grew by 26% and the overall EBITDA grew by 10%. In line with our market, our SAC increased, but is kept at a rational level that allows return. |
The TIM group synergy is a competitive edge that, among several other factors, enables us to develop products using the same technological platform, so that products developed in Italy are launched in our market in record time and at low cost. |
The Management
Tele Nordeste Merge into Tele Celular Sul
On August 19, 2004 and August 30, 2004, Tele Nordeste Celular Participações S.A. (TND) and Tele Celular Sul Participações S.A. (TSU) Shareholders Meetings, respectively, adopted the merger of TND into TSU, under which the first ceased to exist. Additionally, Tele Celular Sul Participações S.A. changed their name to TIM Participações S.A. |
With the merger, TIM Participações S.A. became the holding company of TIM Nordeste Telecomunicações S.A. (formerly held by TND), together with the already held subsidiary TIM Sul S.A. Through those two operating subsidiaries, the Company offers cellular telecommunication services in six states in the Northeast, two states in the South as well as the region of Pelotas in Rio Grande do Sul State. |
On October 11, 2004 TIM Participações S.A. shares started being traded on the Bovespa, under the ticker name TIM PART S/A, keeping the former Tele Celular Sul trading codes, i.e., TCSL3 for common shares and TCSL4 for preferred shares. As for the Company ADRs, shares of the merged company began trading on the New York Stock Exchange (NYSE) on October 15, 2004, keeping the TSU trading ticker. |
Analysis of the Economic-Financial Performance
In order to analyze TIM Participações S.A. economic/financial performance after the above-mentioned corporate restructuring, pro forma statements were prepared for 2003 only to enable a comparison with the Companys 2004 information. |
Highlights
R$ thousands
4Q03 | 4Q04 | Var. % | YTD | YTD | Var. % | |
4Q04/03 | 2003 | 2004 | YoY | |||
Total Gross Revenue | 766,321 | 1,001,586 | 30.7% | 2,730,806 | 3,429,175 | 25.6% |
Gross Service Revenue | 639,180 | 773,012 | 20.9% | 2,351,545 | 2,782,403 | 18.3% |
Gross Handset Revenue | 127,141 | 228,574 | 79.8% | 379,261 | 646,772 | 70.5% |
Total Net Revenue | 586,003 | 747,703 | 27.6% | 2,110,263 | 2,564,632 | 21.5% |
Net Services Revenue | 489,007 | 590,598 | 20.8% | 1,818,190 | 2,120,727 | 16.6% |
Net Handsets Sales | 96,996 | 157,105 | 62.0% | 292,073 | 443,905 | 52.0% |
EBITDA | 229,891 | 260,815 | 13.5% | 805,532 | 886,246 | 10.0% |
EBITDA Margin | 39.2% | 34.9% | - 4.3 p.p. | 38.2% | 34.6% | -3.6 p.p.% |
EBIT | 120,094 | 116,929 | -2.6% | 365,802 | 388,105 | 6.1% |
EBIT Margin | 20.5% | 15.6% | - 4.9 p.p. | 17.3% | 15.1% | -2.2 p.p.% |
Net Income | 107,903 | 83,372 | -22.7% | 277,827 | 265,935 | -4.3% |
Market
Net Addition | Lines | |||||
4Q03 | 4Q04 | Var. % | YTD | YTD | Var. % | |
4Q04/03 | Dec/03 | Dec/04 | YoY | |||
Southern Region | 168,854 | 361,344 | 114.0% | 2,055,884 | 2,990,252 | 45.4% |
Northeast Region | 71,947 | 134,352 | 86.7% | 2,172,525 | 2,666,346 | 22.7% |
TIM Participações S.A. | 240,801 | 495,696 | 105.9% | 4,228,409 | 5,656,598 | 33.8% |
Strong expansion of the mobile market |
TIM Participações closed the year
with 5,656,598 customers 33.8% more than in 2003 ,
of which 76.4% were
prepaid customers and 23.6% postpaid customers. The postpaid base
grew by 7.9% when compared to
2003.
|
In 2004 the total penetration South and Northeast Regions - was estimated at 29% versus 19% in 2003, below the average national penetration of 36.6%. As for regional performances, TIM Participações confirmed its leading position in both the South and Northeast. In particular, estimated penetration was 39% in the South where the Company achieved an estimated market share of 47.9%, while in the Northeast penetration reached 23% and the market share 39.9%. |
GSM Overlay
Successful GSM deployment |
GSM Global System for Mobile Communications, the most widely used technology in the world started being offered to the TIM Participações operating subsidiaries customers in the 2nd half of 2003, formerly operating only with TDMA. By late 2004, the GSM coverage already reached 599 cities, meaning that the services were extended to 91% and 82% of the urban population in the South and Northeast Regions, respectively. |
Cities covered by the GSM have access to the GPRS, with the additional benefit of the EDGE technology across the South and part of Northeast Region. These innovations facilitated the use of data and multimedia services by customers all over Brazil. As an example, in the fourth quarter 2004, TIM Participações launched the TV access, TIM TV Access, enabling customers to access TV broadcasts. In 2005, new handsets will be launched with the EDGE technology supporting TIM TV Access. |
TIM Participações is part of the TIM Group, which represents the major mobile communications operator in GSM technology in Brazil. Furthermore, TIM was the first Brazilian operator to close GPRS/MMS/EDGE data and multimedia roaming agreements abroad. |
By year end, 36% of the total lines were using GSM 2,049,456 customers, representing 46.4% and 24.8% of the customer base in the South and Northeast Regions, respectively. |
Operating Revenue
The gross service revenue in 2004 was R$ 2.8 billion, 18.3% higher than the figures reached in 2003. This increase is mainly credited to the 33.8% expansion in the customer base and the 110.1% growth in Value-Added Services (VAS) revenue. In 4Q04, the gross revenue was R$ 773.0 million versus R$ 639.2 million in 4Q03, a 20.9% increase. |
25,6% Increase in Total Gross Revenue |
The
annual gross handset revenue was R$ 646.8 million, a 70.5% increase over 2003, resulting
from the higher growth of mobile communications in 2004. In the fourth quarter, the
revenue amounted to R$ 228.6 million, 79.8% above the R$ 127.1 million in 4Q03
|
TIM Participações average revenue per user (ARPU) in 2004 was R$ 35.03 compared to R$ 38.09 registered in 2003. The decrease basically derives from the strong growth in the overall customer base, in particular the 44% expansion in the prepaid customer base. In the South Region, the annual ARPU was R$ 36.33, 7.2% below that registered in 2003, while in the Northeast it was R$ 33.72, recording a 9.4% drop. The decrease in the Northeast is also due to the effects of the late Bill & Keep adoption and tax increase in some States of the Region. |
ARPU grows in 4Q04 QoQ |
In the 4Q04, the ARPU was R$ 35.11, a decrease from the R$ 38.11 in 4Q03, manly due to the strong customer base growth and the increase in the proportion of prepaid lines year over year. Despite that scenario, the ARPU in the quarter increased 2.1% compared to the 3Q04. |
Operating Costs and Expenses
In 2004, the cost of services (including network and interconnection costs, before depreciation, amortization and personnel expenses) amounted to R$ 410.0 million, a 0.5% lower than the R$ 411.9 million recorded in 2003, demonstrating further cost efficiency. The cost of services for the 4Q04 was R$ 102.3 million versus R$ 94.4 million in 4Q03. |
Marked increase in handset sales |
The annual handset sales cost was $ 508.8 million, surpassing the R$ 316.7 million in 2003. For 4Q04, this cost was registered at R$ 161.2 million, an increase from the R$ 100.4 million seen in 4Q03. There was a marked expansion in the handset sales volume during the period in 2004 as 1.9 million handsets were sold versus 968.1 thousand in 2003. Of that total, 731.9 thousand handsets were sold in 4Q04 (92.9% above the 379.4 thousand sold in 4Q03). GSM has been chosen by most cell phone users, representing 98.7% of the handsets sold in 4Q04. |
Sales record: - 2.5 million gross additions - 1.9 million handsets sold |
Considering the growth in mobile communications, the Company aimed its sales efforts at expanding its customer base. In
this scenario, selling expenses (without depreciation, amortization, bad debt and personnel expenses) were R$ 433.4
million, 46.1% above those seen in 2003. This was due to the gross addition of 2,514,206 versus 1,465,004 recorded in
2003, representing a 71.6% increase. The strong growth of sales in the period mainly increased the selling expenses
related to commissions and the Fistel tax charged on each new cell phone activation. For the quarter, selling expenses
reached R$ 137.4 million versus R$ 86.3 million in the same period last year. |
In the 4Q04, the SAC was R$ 95.1 versus R$ 86.2 in the 4Q03, as result of the accelerated growth and fierce competition, which affected all operators. The SAC in the period was 31% bellow the R$ 137.8 in the 3Q04, due to the personalized campaigns and mostly focused on postpaid. |
General and administrative expenses (G&A) without depreciation, amortization and personnel expenses, totaled R$ 105.0 million, relatively in line with the R$ 102.0 million in 2003. G&A expenses for the quarter amounted to R$ 21.4 million, 10.3% below 4Q03, because of the decrease in third parties services. |
Personnel expenses in 2004 added up to R$ 115.6 million of which R$ 31.0 million were recorded in 4Q04. This is an increase over the R$ 109.7 million registered in 2003 with R$ 28.2 million reported in 4Q03. |
In 2004 bad debt expenses represented 3.2% of the total gross revenues, the same level of 2003. In absolute terms, the bad debt amounted R$ 112.6 million versus R$ 87.5 million in 2003. The increase was manly due to the business development in the period. |
In the 4Q04 bad debt expenses represented 3.0% of gross revenues amounting to R$ 30.0 million, 14.3% above 4Q03. |
EBITDA
10% increase YoY in the EBITDA |
In 2004, TIM Participações posted an EBITDA earnings before interest, tax, depreciation and amortization of R$ 886.2 million, an increase from the R$ 805.5 million reported in 2003. The EBITDA margin was 34.6%, that is, 3.6 p.p. below the 38.2% margin for 2003, mainly due to the increase in the handset selling costs and commercial expenses resulting from the increased gross additions, as well as the efforts to increase the GSM network in the period. The EBITDA margin, excluding handsets revenue and cost, was 44.9%, over the 45.7% registered in 2003 (- 0.8 p.p.). |
The EBITDA for the 4Q04 was R$ 260.8 million, a 13.5% increase from the same period last year. The EBITDA margin for the period was 34.9%, versus 39.2% recorded in 4Q03. The EBITDA margin, excluding revenue and the handsets cost, was 44.9%, over 47.7% in the 4Q03 (- 2.8 p.p.), manly due to the increase in commercial expenses. |
Depreciation and Amortization
The depreciation and amortization for the year was R$ 498.1 million, versus R$ 439.7 million, a 13.3% increase over 2003, stemming from the network expansion and technological innovation. In 2004, the Depreciation of the TDMA-related assets were accelerated, in order to be fully depreciated by 2008. |
EBIT
6% increase YoY in the EBIT |
The EBIT earnings before interest and tax was R$ 388.1 million, an increase over the R$ 365.8 million reported in 2003. |
Net Financial Income/Expense
Decrease in financial income |
Our net financial income was R$ 60.6 million in 2004, over R$ 79.1 million in 2003. The average cash allotted to financial investment for the year decreased by 19.7%, and the interest rate (CDI) declined 7.1p.p. over 2003. |
Net income
The consolidated net income was R$ 265.9 million, 4.3% below 2003. In 2003, the income included the non-operating revenue, amounted to R$ 25.1 million, concerning the profit from the sale of the interest in Blah company. |
Indebtedness
On December 31, 2004, our indebtedness amounted to R$ 104.1 million, of which 60.4% were short-term debts. The net cash by period end was R$ 752.2 million. |
Investments
Investments in 2004 totaled R$ 675.0 million (R$ 308.9 million in 4Q04), basically aimed the expansion of the GSM network. |
This press release contains forward-looking statements and estimates. Such expectations are based on a series of assumptions, and subject to the risks and uncertainties inherent to forward-looking projections and/or estimates. The results may differ materially from the expectations expressed in the forward-looking statements or estimates if one or more of the assumptions and expectations prove to be incorrect or are not realized. |
List of Attachments
Attachment 1: Balance Sheet (BR GAAP))
Attachment 2: Statement of Income (BR GAAP) include note explaining reclassifications
Attachment 3: Operating Indicators South Region
Attachment 4: Operating Indicators Northeast Region
Attachment 5: Consolidated Operating Indicators TIM Participações
Attachment 6: Glossary
Attachment 1
Balance
Sheet (BR GAAP)
CONSOLIDATED BALANCE SHEET IN THOUSANDS OF REAIS
PROFORMA | ||
DESCRIPTION | December/03 | Decembro/04 |
3,161,404 | 3,596,156 | |
ASSETS | ||
CURRENT ASSETS | 1,475,984 | 1,716,347 |
Cash and banks | 756,833 | 856,332 |
Trade accounts receivable | 438,802 | 595,935 |
Inventories | 28,621 | 47,200 |
Recoverable taxes | 136,808 | 91,154 |
Deferred income tax and social contribution | 105,383 | 108,706 |
Others | 9,536 | 17,020 |
NON CURRENT ASSETS | 273,058 | 242,057 |
PERMANENT ASSETS | 1,412,363 | 1,637,752 |
Investments | 11,470 | 9,890 |
Deffered | 1,400,893 | 1,627,862 |
PROFORMA | ||
DESCRIPTION | December/03 | Decembro/04 |
Liabilities and stockholders' equity | 3,161,404 | 3,596,156 |
CURRENT LIABILITIES | 819,209 | 1,086,605 |
Trade accounts payable | 410,408 | 691,022 |
Loans and financings | 83,650 | 62,872 |
Suppliers | 38,808 | 11,361 |
Salaries and social charges | 23,510 | 20,842 |
Taxes and contribution payble | 130,480 | 161,648 |
Dividends and Interest on own capital | 105,092 | 114,678 |
Related Parties | 13,335 | 2,944 |
Othes | 13,926 | 21,239 |
NON CURRENT LIABILITIES | 163,280 | 95,439 |
MINORITY INTEREST | 374,887 | 393,605 |
SHAREHOLDERS' EQUITY | 1,804,028 | 2,020,507 |
Capital | 687,411 | 884,504 |
Capital not paid | (4,539) | - |
Special reserve | 292,918 | 240,634 |
Revenues reserve | 828,238 | 895,369 |
The Complete Financial
Statements, including the Notes thereto, are available on our Website:
www.timpartri.com.br
Attachment 2
Statement
of Income (BR GAAP)
DESCRIPTION | 4Q04 | 4Q03 Proforma |
2004 | 2003 Proforma |
Gross Revenues | 1,001,586 | 766,321 | 3,429,175 | 2,730,806 |
Telecommunications Services | 773,012 | 639,180 | 2,782,403 | 2,351,545 |
Monthly fee | 78,294 | 92,759 | 358,178 | 358,347 |
Usage | 430,621 | 318,821 | 1,449,628 | 1,128,024 |
Interconnection | 212,486 | 201,656 | 822,576 | 783,473 |
VAS | 40,920 | 17,666 | 118,396 | 56,362 |
- Short Message Services | 10,691 | 8,279 | 33,624 | 25,339 |
Handset sales and other revenues | 228,574 | 127,141 | 646,772 | 379,261 |
Handset Sales | 228,574 | 127,141 | 646,772 | 379,261 |
Discounts and deductions | (253,883) | (180,318) | (864,543) | (620,543) |
Taxes and discounts on services | (182,414) | (150,173) | (661,676) | (533,355) |
Taxes and discounts on handset sales | (71,469) | (30,145) | (202,867) | (87,188) |
Net Revenues | 747,703 | 586,003 | 2,564,632 | 2,110,263 |
Services | 590,598 | 489,007 | 2,120,727 | 1,818,190 |
Handset and other revenues | 157,105 | 96,996 | 443,905 | 292,073 |
Operating Expenses | (486,888) | (356,112) | (1,678,386) | (1,304,731) |
Personal expenses | (31,051) | (28,174) | (115,658) | (109,757) |
Selling & marketing expenses | (137,449) | (86,330) | (433,418) | (296,746) |
Network & interconnection | (102,287) | (94,434) | (410,057) | (411,957) |
G&A | (21,449) | (23,892) | (104,960) | (101,986) |
COGS - Telecom products | (161,218) | (100,367) | (508,837) | (316,694) |
Bad Debt | (30,148) | (26,377) | (112,605) | (87,456) |
Other operational revenues (expenses) | (3,286) | 3,462 | 7,151 | 19,864 |
EBITDA | 260,815 | 229,891 | 886,246 | 805,532 |
EBITDA - Margin over total net revenues | 34.9% | 39.2% | 34.6% | 38.2% |
Depreciation | (107,681) | (82,238) | (361,950) | (334,926) |
Amortization | (36,205) | (27,558) | (136,191) | (104,804) |
EBIT | 116,929 | 120,094 | 388,105 | 365,802 |
EBIT - Margin over total net revenues | 15.6% | 20.5% | 15.1% | 17.3% |
Other non-operational revenues (expenses) | (399) | 25,348 | (4,592) | 26,661 |
Equity | 0 | (551) | 0 | (6,500) |
Net Financial Results | 11,257 | 34,135 | 60,571 | 79,070 |
Financial expenses | (21,738) | (17,789) | (68,801) | (151,281) |
Variações cambiais, líquidas | (1,231) | (2,232) | (4,241) | (8,037) |
Financial income | 34,225 | 54,157 | 133,613 | 238,388 |
Net income before taxes and Minorities | 127,787 | 179,027 | 444,084 | 465,033 |
Income tax and social contribution | (20,876) | (45,455) | (108,036) | (111,813) |
Minority interest | (23,539) | (25,668) | (70,113) | (75,393) |
Net Income | 83,372 | 107,903 | 265,935 | 277,827 |
The Complete Financial
Statements, including the Notes thereto, are available on our Website:
www.timpartri.com.br
Attachment 3
Operating
Indicators in the South Region
4Q03 | 4Q04 | Var.% 3Q04/03 |
YTD Dec/03 |
YTD Dec/04 | |
Estimated Population in the Region (million) | 15.6 | 15.8 | 1.3% | 14.7 | 15.8 |
Municipalities Served | 256 | 297 | 16.0% | 256 | 297 |
Estimated Total Penetration | 25% | 39% | +14.0 p.p. | 25% | 39% |
Market Share | 53.4% | 47.9% | -5.5 p.p. | 53.4% | 47.9% |
Total Lines | 2,055,884 | 2,990,252 | 45.4% | 2,055,884 | 2,990,252 |
Prepaid | 1,522,071 | 2,343,881 | 54.0% | 1,522,071 | 2,343,881 |
Postpaid | 533,813 | 646,371 | 21.1% | 533,813 | 646,371 |
Gross Additions | 346,548 | 518,878 | 49.7% | 844,989 | 1,516,450 |
Net Additions | 168,854 | 361,344 | 114.0% | 332,224 | 934,368 |
Churn | 9.0% | 5.6% | -3.4 p.p. | 27.9% | 24.0% |
TOTAL ARPU | R$38,00 | R$35,82 | -5.7% | R$39,13 | R$36,33 |
TOTAL MOU | 94 | 77 | -18.1% | 95 | 83 |
Investment (R$ million) | 119 | 148 | 24.6% | 212 | 368 |
Employees | 958 | 1,143 | 19.3% | 958 | 1,143 |
Attachment 4
Operating
Indicators in the Northeast Region
4Q03 | 4Q04 | Var.% 4Q04/03 |
YTD Dec/03 |
YTD Dec/04 | |
Estimated Population in the Region (million) | 28,2 | 28,6 | 1.3% | 28,2 | 28,6 |
Municipalities Served | 308 | 308 | 0.0% | 308 | 308 |
Estimated Total Penetration | 16% | 23% | +7 p.p. | 16% | 23% |
Market Share | 47.3% | 39.9% | -9.5 p.p. | 47.3% | 39.9% |
Total Lines | 2,172,525 | 2,666,346 | 22.7% | 2,172,525 | 2,666,346 |
Prepaid | 1,467,251 | 1,975,342 | 34.6% | 1,467,251 | 1,975,342 |
Postpaid | 705,274 | 691,004 | -2.0% | 705,274 | 691,004 |
Gross Additions | 176,391 | 338,393 | 91.8% | 620,015 | 997,756 |
Net Additions | 71,947 | 134,352 | 86.7% | 246,682 | 493,821 |
Churn | 4.9% | 7.9% | 3.0 p.p. | 18.3% | 21.0% |
TOTAL ARPU | R$38,21 | R$34,33 | -10.1% | R$37,15 | R$33,72 |
TOTAL MOU | 108 | 91 | -16.1% | 106 | 96 |
Investment (million) | 185 | 161 | -13.0% | 294 | 307 |
Employees | 1,023 | 1,046 | 2.2% | 1,023 | 1,046 |
Attachment 5
Consolidated
Operating Indicators TIM Participações S.A.
4Q03 | 4Q04 | Var.% 4Q04/03 |
2003 Dec/03 |
2004 Dec/04 | |
Estimated Population in the Region (million) | 43.9 | 44.4 | 1.1% | 43.9 | 44.4 |
Municipalities Served | 564 | 599 | 6.2% | 564 | 599 |
Estimated Total Penetration | 19% | 29% | +10.0 p.p. | 19% | 29% |
Market Share | 50.1% | 43.8% | -6.3 p.p. | 50.1% | 43.8% |
Total Lines | 4,228,409 | 5,656,598 | 33.8% | 4,228,409 | 5,656,598 |
Prepaid | 2,989,322 | 4,319,223 | 44.5% | 2,989,322 | 4,319,223 |
Postpaid | 1,239,087 | 1,337,375 | 7.9% | 1,239,087 | 1,337,375 |
Gross Additions | 522,939 | 857,271 | 63.9% | 1,465,004 | 2,514,206 |
Net Additions | 240,801 | 495,696 | 105.9% | 578,906 | 1,428,189 |
Churn | 6.9% | 6.7% | -0,2 p.p. | 22.8% | 22.5% |
TOTAL ARPU | R$38.11 | R$35.11 | -7.9% | R$38.09 | R$35.03 |
TOTAL MOU | 101 | 84 | -17.6% | 101 | 90 |
Investment (R$ million) | 304 | 309 | 1.7% | 506 | 675 |
Employees | 1,981 | 2,189 | 10.5% | 1,981 | 2,189 |
Attachment 6
Glossary
Financial Terms EBIT = Earnings before interest and tax EBITDA = Earnings before interest, tax, depreciation and amortization EBITDA Margin = EBITDA/ Net Operating Revenue CAPEX (capital expenditure) capital investment Subsidy = (net revenue from goods cost of sales + vendors discounts) / gross additions Net debt = gross debt cash PL Shareholders Equity Technology and Services TDMA = Time Division Multiple Access GSM = Global System for Mobile Communications A system storing and coding cell phone data, such as user calls and data, enabling a user to be recognized anywhere in the country by the GSM network. The GSM is now the standard most used in the world. EDGE = Enhanced Data rates for Global Evolution A technique developed to increase the speed of data transmission via cell phone, creating a real broadband for handsets with the GSM technology. The first EDGE handsets available offer speeds that can reach up to 200 Kbps, depending on the handset model. SMS = Short Message Service ability to send and receive alphanumerical messages. |
Operating indicators
Customers = Number of wireless lines in service Gross additions = Total of customers acquired in the period Net additions = Gross Additions number of customers disconnected Market share = Companys total number of customers / number of customers in its operating area Marginal Market share = participation of estimated net additions in the operating area. Market penetration = Companys total number of customers + estimated number of customers of competitors / each 100 inhabitants in the Companys operating area Churn rate = number of customers disconnected in the period ARPU = Average Revenue per User net monthly revenue per customers in the period Blended ARPU = ARPU of the total customer base (contract + prepaid) Contract ARPU = ARPU of contract service customers Prepaid ARPU = ARPU of prepaid service customers MOU = minutes of use monthly average. in minutes of traffic per customer = (Total number of outgoing minutes + incoming minutes) / monthly average of customers in the period Contract MOU = MOU of contract service customers Prepaid MOU = MOU of prepaid service customers SAC = Customer acquisition cost = (marketing expenses + commission + Fistel + comodato + costs of retention) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
TIM PARTICIPAÇÕES S.A. | ||
Date: February 2, 2005 | By: | /s/ Paulo Roberto Cruz Cozza |
Name: Paulo Roberto Cruz Cozza | ||
Title: Chief Financial Officer |