TIM Participacoes (NYSE:TSU)
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Brazilian mobile-phone company TIM Participacoes SA (TSU) saw a reduction in its net loss in the second quarter, as a broad company restructuring reflected positively on operational results.

TIM Participacoes reported a second quarter net loss of 15.2 million Brazilian reals ($8.3 million), compared with a loss of BRL66.3 million registered in the year-earlier period.

The Brazilian unit of Telecom Italia SpA (TI) said its earnings before interest, taxes, depreciation and amortization, or Ebitda, was up 15.5% on the year to BRL736 million. Ebitda margin was 22.3%, up from 20% in the same quarter of 2008.

The No. 3 cellphone provider is in the middle of a restructuring aimed at improving the quality of its services and refocusing on the higher-end postpaid segment of the Brazilian market.

Because of the restructuring, the company saw its revenue increase more than its costs in the period.

Second-quarter net revenue totaled BRL3.3 billion, up 3.7% from BRL3.18 billion in the same period the year before, according to the company's earnings release.

The company's operating costs totaled BRL2.56 billion, up 0.8% from BRL2.54 billion seen in the second quarter of 2008.

TIM ended the second quarter with 37.8 million clients, up 11.9% from the same period of 2008.

The company invested BRL422.5 million in its operations in the second quarter, compared with BRL1.7 billion invested in the same period of 2008.

-By Rogerio Jelmayer, Dow Jones Newswires; 5511-2847-4521; rogerio.jelmayer@dowjones.com