THE TIM Brasil released the financial results for 2020, and closed the year with falling indicators: normalized net income was R $ 1.87 billion, down 1.8% compared to the previous year. On the other hand, the operator celebrates the growth in postpaid revenue, the expansion of 4G and fiber coverage and the increase in customers on broadband TIM Live.
See below the financial indicators for the year 2020 and the comparison with 2019:
|Net Revenue||R $ 17.37 billion||R $ 17.26 billion||-0.6%|
|Normalized net income||R $ 1.90 billion||R $ 1.87 billion||-1.8%|
|Normalized cost of operation||R $ 9.26 billion||R $ 8.89 billion||-4%|
|Capex (investments)||R $ 3.85 billion||R $ 3.89 billion||+ 1%|
The annual indicators were mainly impacted by the drop in revenue in the second quarter of 2020, when there was a greater impact due to the COVID-19 pandemic.
TIM had drop in mobile phone customers
The cell phone service is the flagship of TIM, and accounted for R $ 15.6 billion of net revenue for the year. The operator closed the year with 51.4 million cell lines, which represents a 5.5% drop in the customer base. This caused the revenue from mobile services to fall 0.2% compared to 2019.
TIM ended the year with 29.6 million using the prepaid service, but says that the number of users who recharge did not return to the same level as in 2019. On the other hand, postpaid increased by 1.9% in revenue, and 26% of the entire category is found in TIM Black Família, which has a higher monthly cost than individual plans.
With the purchase of Oi Móvel in conjunction with competitors Claro and Vivo, TIM celebrates the addition of 14.5 million customers, 7,200 antenna sites and 49 MHz of spectrum license. The sale has yet to be approved by Anatel and the Administrative Council for Economic Defense (Cade).
TIM grew in 4G and will expand 5G DSS
The operator remains the leader in 4G coverage in Brazil, with 3,900 cities covered. The frequency of 700 MHz, which allows covering more areas with fewer antennas, is activated in 3,300 municipalities, and the use of the spectrum used by old technologies (refarming) reached 2,600 locations.
Another important highlight is that 88% of TIM’s mobile data traffic occurred on the fourth generation network. 4.5G is present in 1,400 cities, and VoLTE technology (which allows voice calls over 4G networks) already reaches 94% of the municipalities.
TIM also activated the 5G DSS technology in 2020 in the cities of São Paulo, Rio de Janeiro, Belo Horizonte, Brasília and Curitiba, and states that it will expand to another 12 municipalities by March 2021.
TIM Live had a 14% increase in broadband customers
In residential services, broadband is still at a low level: the service is available to 3.2 million households in 27 municipalities, but it only has 645 thousand customers in total. Most accesses are made using metallic cables; optical fiber (FTTH) is the only technology used in cities where the operator recently debuted.
The operator also discloses that 52% of the base has speeds below 100 Mb / s, that is, with connection made by metallic pair. This represents an improvement compared to 2019, when it was 68%.
TIM was responsible for 1.6 million accounts at C6 Bank
TIM also obtained a bonus from C6 Bank for reaching the agreed goals. The operator obtained the right to 1.4% of the financial institution’s capital stock.
The operator’s partnership with the bank gives advantages to customers, such as internet bonuses, better investment rates and discounts on the Mastercard Black credit card annuity. TIM points out that it was responsible for opening 1.6 million accounts at C6 Bank.
November 2020 data shows that C6 Bank had 4 million account holders. TIM states that it will exercise the right to exercise the bonus at a time that management deems appropriate.