Brazil's TIM Participacoes 3rd-Quarter Profit Drops as Revenue Declines

By Rogerio Jelmayer

SAO PAULO--Brazilian mobile-phone company TIM Participacoes SA (TSU, TIMP3.BR) reported a 50.5% decline in net profit in the third quarter, as revenue fell amid the country's poor economic performance.

The Brazilian unit of Telecom Italia SpA (TI, TIT.MI) late Tuesday reported a net profit of 172.3 million Brazilian reais ($46 million) in the third quarter, down from BRL365.6 million a year earlier.

The company's net revenue dropped nearly 15.2% in the latest period to BRL4.11 billion.

"The great transformation in the mobile industry we have been highlighting since the beginning of 2015 continued well into the third quarter, accompanied once again by the very tough macroeconomic environment, which presented an accentuated deterioration of the exchange rate, yet another negative adjustment to GDP growth and a confirmation of the high inflation for the year," said Chief Executive Rodrigo Abreu in a statement.

TIM Participacoes, the second-largest Brazilian telecom in terms of clients, ended the quarter with a total 72.57 million clients, down 2.9% from the third quarter of 2014.

Write to Rogerio Jelmayer at [e-mail]

(END) Dow Jones Newswires

November 04, 2015 04:56 ET (09:56 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.