Brazil's TIM Participacoes 2Q Profit Drops as Revenue Declinesc
July 26 2016 - 6:49AM
Dow Jones News
By Rogerio Jelmayer
SAO PAULO--Brazilian mobile-phone company Tim Participacoes SA
(TSU, TIMP3.BR) reported a drastic decline in its net profit in the
second-quarter, as revenue fell amid country's economic
recession.
The Brazilian unit of Telecom Italia SpA (TI, TIT.MI) late
Monday reported a net profit of 74.4 million Brazilian reais ($22.5
million) in the second quarter, down from BRL943.5 million a year
earlier.
The company's revenue dropped 12.4% in the latest period to
BRL3.82 billion.
TIM Participacoes, the second-largest Brazilian telecom in terms
of clients, ended the quarter with a total 63.96 million clients,
down 14.3% from the second-quarter of 2015.
Brazil's poor economy, which in recent years damaged big-ticket
purchases such as vehicles, is also affecting the sale of cheaper
goods. After years of double digit expansion, the mobile phone
market lost traction in recent quarters.
After contracting 3.8% last year, country's economy is expected
to shrink 3.27% this year, according to economists.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
(END) Dow Jones Newswires
July 26, 2016 06:34 ET (10:34 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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