Profit grows, but per-user revenue falls

The mobile phone operator TIM recorded net revenue of R $ 4.94 billion in the second quarter, a high of 8.7% over the same period last year. The performance is higher than the expectations of analysts heard by value, which provided an index under 7% recorded in the range between April and June 2012.
But the earnings before interest, taxes, depreciation and amortization (Ebitda) was underwhelming. The recorded increase of 1.8%, to $ 1.23 billion, when the high was forecast between 4.2% and 5.2%. In the second quarter of 2012, the Ebitda had increased 6%. In the interval between April and June this year, the Ebitda margin was 24.9%, below the rate of 26.6% from same period in 2012.
Among the reasons are the increase in the cost of goods sold, which advanced 44.5% in the quarter, to $ 912 million. The company reported that 78% of its sales of mobile phones in the period were more expensive devices (smartphones or webfones). The participation of users with this type of appliance in your base total was 50% in the second quarter, compared to 35% in the same period in 2012. The carrier also reported that there has been an increase in General and administrative expenses.
The increase in the sale of smartphones is not reflected, however, in average revenue per user (arpu) fell 0.7% in the quarter, to $ 18.1. Are two consecutive quarters of decline in arpu.
The company recorded an increase in net income for the quarter of 12%, to R $ 385,5 million, within the expectations of analysts consulted by the value. The operator was able to reduce the net debt in 13%, to $ 1.98 billion, which is equivalent to 0.39 times Ebitda. According to TIM, 37% of the debt is in foreign currency.