TIM Participacoes Second-Quarter Profit Declines As Revenue Drops

   By Rogerio Jelmayer 
 

SAO PAULO--Brazilian mobile-phone company TIM Participacoes SA (TSU, TIMP3.BR) saw a 20.5% decline in net profit in the second 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 290.7 million Brazilian reais ($84 million) in the second quarter, down from BRL365.6 million a year earlier.

The company's net revenue dropped nearly 9% in the period to BRL4.35 billion.

"During the second quarter of 2015 we could continue to observe what we had highlighted at the beginning of the year, which is a tough macroeconomic environment, with a scenario of high inflation and contraction of the economy, which is expected to present negative growth during the year, reverting the projections of moderate growth developed at the end of 2014," said Rodrigo Abreu, company's CEO, in a statement.

TIM Participacoes, which is the second-largest Brazilian telecom in terms of clients, ended the quarter with a total of 74.6 million clients, up 0.5% from the second quarter of 2014.

Write to Rogerio Jelmayer at [e-mail]

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