TIM will invest R$ 3 billion in 2012

TIM will invest $ 3 billion in 2012 and, according to the chairman of the operator, Luca Luciani, the name of the game remains the mobile transmission. Most of the resources earmarked for Brazil, within this strategy will be allocated to expand the network infrastructure - capacity 2G, 3G and fiber.In teleconferencing results for the fourth quarter of 2011, held on Thursday, 16/02 Luca Luciani argued that despite the strong pace recorded in the cell phone last year, the country will follow with a relevant increase in 2012, spurred, he said the substitution of the mobile voice fixed.Luciani noted that the TIM over the last year, when invested $ 2.9 billion, doubled the capacity of the 2G network to improve the quality of voice service and also resumed investments in 3G, reaching more than 500 municipalities. For this year, well within the guidelines of betting on classes C, D and E, the North and Northeast will concentrate investments in network and services, due to quality problems and capacity reported over the last year.Strategically, the mobile Internet emerges as the major target to be achieved this year. The President of TIM Brazil, broadband mobile network will be the second largest market in the country in 2016 and will overtake fixed Internet market and fixed voice.Luciani also noted that although the operator Tues targeted subscribers of the classes C, D and E, with the Infinity Web, which gives users access to pre-paid $ 0.50 - which ended the year with 17.5 million unique users per month, almost double the recorded earlier this year - 9.6 million - there was also an increase of 30% on the basis of post-paid subscribers. ARPU - average revenue per user - was R $ 21.09, keeping the average of the last four quarters.Another fact celebrated by TIM was the low allowance for cellular terminals - which in 2010 accounted for $ 290 million, and in 2011 was virtually zero. Still, the customer base with smartphones is 27% - in January 2011 was only 10%.

And, speaking of the domestic market, Luciani noted that the results of the TIM the increasing distance of third place - Claro, America Movil, with whom he waged a fierce battle for second place in recent times - and the approach of Vivo, which leads the ranking.

The results

TIM recorded net income of SR 405 million in the fourth quarter of 2011, down over 78% over the same period in 2010, when it recorded $ 1.8 billion, impacted by the tax credit and the gain on foreign exchange on debt.

In the year, profit reached R $ 1.2 billion, up 65.4% compared with $ 777 million (organic) in 2010. Total net revenue reached R $ 4.6 billion in the quarter, an increase of 19.4%. The net revenue from services showed an annual growth of 16.8%, reaching R $ 4.2 billion. In the year, net revenues increased from $ 17 billion, 18% to the $ 14.4 billion in 2010.

EBITDA (earnings before interest, taxes, depreciation and amortization) reached R $ 1.3 billion in 4T11, representing an increase of R $ 104 million over 4Q10 (or +8.7%). The EBITDA margin in the fourth quarter was 27.8% in 4T11, a decrease compared with 30.6% in 4Q10. The annual decline is largely explained by the increase in sales of handsets that diluted the EBITDA margin.

The total subscriber base of the company ended the quarter with 64.1 million lines, 25.6% more when compared to 4Q10, representing a market share of 26.5%. The total net additions for 4T11 reached 4.9 million lines, taking the lead in the quarter with 32.7% market share and additional 43% compared to December only.