Brazil’s TIM reports 54% decline in quarterly profit
6:59 pm Monday, August 01st, 2022
SAO PAULO (Reuters) -Brazilian telecom TIM SA posted a 54.1% decrease in second quarter net profit, as soaring costs offset solid revenue growth, the company said on Monday.
TIM Brazil, controlled by Telecom Italia, reported that net income fell to 313 million reais from 681 million reais the previous year.
Net revenue grew 21.8% in the period to 5.37 billion reais, mainly bolstered by a 23% expansion in revenue from mobile phone services.
During the quarter, TIM incorporated 16 million clients from the mobile unit of bankrupt telecoms provider Oi, in addition to increasing prices for its own mobile costumers.
On the other hand, costs rose by 26.4% to 2.93 billion reais, as the company had more non-recurring expenses related to the acquisition of Oi’s mobile assets and to the leasing of I-systems’ fiber optic network.
(Reporting by Peter Frontini)
