While TIM posted a 12% rise in its second-quarter profit, beating forecasts on strong cost controls, NII Holdings’ Nextel operations presented a consolidated net loss of $386 million.
TIM, Brazil’s second-largest wireless telecom operator, said its postpaid base grew 13.9% year-over-year. During a conference call, Rodrigo Abreu, president of TIM, highlighted the improvement in average revenue per user and the growth in data revenues, which came in at $566 million (+25.3% YoY). “We improved our post and prepaid customer base mix, increased data revenues and had better customer management,” Abreu said.
Abreu also noted the carrier is deploying small cells to improve coverage and meet increased demand for mobile data.
As for Nextel, NII Holdings said that its consolidated financial results for the second quarter of 2013 reflect the discontinued operations of Nextel Peru. The telco’s consolidated operating revenues were $1.26 billion, down 11% from the second quarter of 2012. The consolidated adjusted operating income before depreciation and amortization dropped 55% to $101 million.
NII Holdings said that the decrease in consolidated adjusted OBIDA was driven by incremental investments related to the planned deployment of its next generation networks, costs to migrate customers to the next generation network in Mexico, weaker average foreign currency exchange rates and lower ARPU on a local currency basis.
More news from Latin American region:
- Venezuela’s Digitel has started LTE tests. It is set to be the first operator in the country to offer the next generation telecommunications technology.
- Vodafone is entering the South American market. The telco has partnered with Brazilian Datora Telecom. Under the deal, Datora Mobile, which launched last year to provide machine-to-machine services, will be renamed Vodafone Brasil and will retain the same focus.
- VTR, the main quadplay provider in Chile, reported earnings of $252.7 million during the second quarter, 11.4% more than the $226.8 million posted last year.
- Telefónica launched Firefox OS with the Alcatel OneTouch Fire and ZTE Open devices in Colombia and Venezuela.
- The Brazilian government announced that the analog switch-off in the country will now occur between Jan. 1, 2015 and Dec. 31, 2018. The original shut off deadline was Dec. 31, 2016.
Be sure not to miss what’s happening in Latin America’s wireless markets. Check out RCR Wireless News wrap ups.
