Contacts:
In Brazil
Joana Dark Fonseca Serafim
Investor Relations Manager
Phone #: +55 41 312-6862
E-mail: jserafim@timsu...
The Management
1Q00 1Q99 4Q99
...
Decrease in Cost of handset sales for the first quarter of 2000 was R$ 40.0 million versus the
subsidies ...
NET PROFIT
Consolidated net profit for the quarter was R$ 11.8 million (R$0.04 per lot of
1,000 shares), versus R$16.1 ...
Operating Revenue
R$ thousands
...
Operating Highlights
1Q00 1Q99 4Q99
Total Customers ...
TELE CELULAR SUL PARTICIPAÇÕES S.A.
BALANCE SHEETS AS OF MARCH 31, 2000 AND DECEMBER 31, 1999
...
TELE CELULAR SUL PARTICIPAÇÕES S.A.
BALANCE SHEETS AS OF MARCH 31, 2000 AND DECEMBER 31, 1999
...
TELE CELULAR SUL PARTICIPAÇÕES S.A.
CONSOLIDATED STATEMENTS OF INCOME
...
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Press Release 1 Q00 Tele Celular Sul En

Published on: Mar 4, 2016
Source: www.slideshare.net


Transcripts - Press Release 1 Q00 Tele Celular Sul En

  • 1. Contacts: In Brazil Joana Dark Fonseca Serafim Investor Relations Manager Phone #: +55 41 312-6862 E-mail: jserafim@timsul.com.br Web site: www. timsul.com.br TELE CELULAR SUL PARTICIPAÇÕES S.A. ANNOUNCES ITS FIRST QUARTER 2000 RESULTS Curitiba, May 9, 2000 – Tele Celular Sul Participações S.A. (BOVESPA: TCLS3 and TCLS4; NYSE: TSU), the holding Company of Telepar Celular S.A., Telesc Celular S.A. and CTMR Celular S.A., leading providers of cellular telecommunications services in Southern Brazil, announces its results for the first quarter of 2000. “As a result of its sales efforts, Tele Celular Sul, registered 133,500 gross additions during the first quarter of 2000. This represents 77% of the sales volume of the fourth quarter of 1999. This growth resulted in greater profitability, measured in terms of the EBTIDA margin, which reached 32% for the three-month period ended March 31, 2000 compared with the EBITDA margin of 15% for the fourth quarter of 1999. This also allowed the Company to maintain the leading position in the market, with 85% Market Share.”
  • 2. The Management 1Q00 1Q99 4Q99 Market Total Gross Revenue 252,971 182,724 262,992 Leadership Net Operating Revenue 161,279 128,909 149,480 Net Cell Phone Sale Revenue 32,765 16,613 61,595 Total Net Revenue 194,044 145,522 211,075 EBITDA 61,059 57,272 32,196 EBITDA Margin 32% 39% 15% EBITDA Margin without cell phone sales 38.0% 44% 22% Depreciation 28,349 19,771 32,727 Net Profit 11,842 16,056 10,062 Profit per 1,000 Shares 0.04 0.05 0.03 MARKET SHARE Tele Celular Sul maintains the leading position in its market, retaining an estimated 85% Market Share at March 31, 2000. The total market penetration rate for the period is approximately 9.0 cell phones per 100 inhabitants. OPERATING REVENUE The Company’s gross operating revenue for the quarter was R$253.0 million, representing a 38% increase year-over-year. On March 31, 2000, the Company had 1,121,531 subscribers, of which 357,789 were prepaid service users. Net operating revenue was R$ 194.0 million, compared with R$145.5 for the first quarter of 1999. Net operating revenue, including sales of handsets, reached R$ 32.8 million for the first quarter of 2000, when compared with the R$16.6 million reached for the first quarter of 1999. Composition of the Gross Operating Revenue Composition of the Gross Operating Revenue 03.31.2000 - R$ 253.0 million 03.31.1999 - R$ 182.7 million OPERATING COSTS AND EXPENSES Activation Other Handset Sale 0,4 Handset Sale Fee Use of the 19,3 1,9 38,3 Other 3,5 Network * 28,2 72,7 Use of 94,0 Network * 85,3 Usage Usage 47,6 44,5 *Interconnection Subscription Subscription * Interconnection Cost of services rendered for the first quarter of 2000 was R$70.4 million, an increase of 31% and 8% over the first and fourth quarters of 1999. This increase is basically due to plant growth. Composition of the Cost of Services Rendered Composition of the Cost of Services Rendered 03/31/2000 - R$70.4 million 03/31/1999 - R$ 53.7 million Subscription Third party Other Payroll Payroll services Third party 2.8 Fistel 0.9 Fistel 7.0 1.0 services 6.9 3.1 0.9 Depreciation Depreciation 26.5 19.5 15.3 15.8 11.5 13.1 Interconnection Leased Lines Interconnection Leased Lines
  • 3. Decrease in Cost of handset sales for the first quarter of 2000 was R$ 40.0 million versus the subsidies R$92.0 million for the fourth quarter of 1999, reflecting the reduction of subsidies and cell phone sales volume. General and administrative expenses totaled R$11.0 million versus the R$ 14.9 million for the first quarter of 1999. This slight decrease was due to the reduction of outsourced services. For the first quarter of 2000, selling expenses reached R$44.4 million versus the R$ 19.3 million for the first quarter of 1999. This increase was primarily due to plant growth, the increasingly competitive environment and the increase in expenses for doubtful accounts. Expenses relating to doubtful accounts for the year were R$17.7 million, or 6.7% of gross revenue. For the first quarter of 1999, expenses reached R$10.0 million. The Company disconnected 17,000 subscribers with doubtful accounts during the three- 81.3% month period ended March 31, 2000, due the enforcement of strict credit controls measures resulting from the customer care. short-term That measure increased the churn to 4%, when compared with the 2% recorded for the first quarter of 1999. indebtedness In an attempt to decrease expenses for doubtful debts, the Company contracted a specialized collection company and has also encouraged the migration of those subscribers to the prepaid service. Once the operating companies’ Automated Billing System is consolidated, Tele Celular Sul will be implementing more severe measures to control credit and collection. Reduction in subsidy levels Marketing and Advertising Expenses totaled R$ 8.8 million (R$ 1.5 million for the first quarter of 1999), marking the transition to the competitive environment. Within this scenario, subscriber acquisition cost (SAC) for the first quarter 2000 was R$ 156.00. The retention cost related to customer migration from the analog to the digital system was R$85.00. For the three-month period ended March 31, 1999, approximately 40,000 subscribers migrated; 73% of the subscriber base is already digital. The used cell phone inventory was marked to market in order to reflect the effective selling expenses. This adjustment was provisioned under other operating expenses in the amount of R$ 5.0 million. FINANCING EXPENSES Financing expenses for the year were R$ 19.8 million, representing a 30% decrease when compared to the first quarter of 1999. Tele Celular Sul’s interest-bearing indebtedness at March 31, 2000, was R$ 296.3 million, representing 52% of stockholders’ equity. EBITDA EBITDA and EBITDA margin for the quarter were R$ 61.1 million and 32%, respectively. Including subsidies and excluding the sale of cell phones, EBITDA margin was 38%. For the fourth quarter of 1999, EBITDA and EBITDA margin were R$32.2 million and 15%, respectively.
  • 4. NET PROFIT Consolidated net profit for the quarter was R$ 11.8 million (R$0.04 per lot of 1,000 shares), versus R$16.1 million for the first quarter of 1999. INVESTMENT The Company invested R$ 50.7 during the first quarter of 2000, primarily focusing on the digitalization and expansion of its plant. Network Digitalization ERB´S Channels Digital Analog Digital Analog 573 107 19.114 18.716 84% 16% 51% 49% RECENT EVENTS The financial statements relating to fiscal year 1999 were approved at the Annual Shareholders’ Meeting held on April 28, 2000. The payment of Interest on equity, equivalent to R$ 0.036 per lot of 1,000 ordinary and preferred shares (net of income tax) was also approved. This dividend will be paid as of June 28, 2000, adjusted by the Brazilian Reference Rate (TR) from December 31, 1999, to June 28, 2000. On April 28th, the Company also held an Extraordinary Shareholders’ Meeting which approved the merger of 1A2A Participações S.A. into Tele Celular Sul Participações S.A., according to the announcement published on April 13, 2000. This transaction was done to transfer the premium paid by Bitel Participações S.A. (controlling shareholder of Tele Celular Sul) during the Telebrás auction to Tele Celular Sul. Additionally, upon the approval of ANATEL, Tele Celular Sul intends to transfer the premium to its operating companies, following their consolidation into a single company. xxxxxxxxxxxxxxxxxxxxxxxx
  • 5. Operating Revenue R$ thousands 1Q00 1Q99 4Q99 Cell Phone Sales 38,347 19,306 65,250 Timed charges 94,027 85,336 99,179 Subscription fees 47,603 44,480 48,747 Interconnection Charge 72,583 28,176 42,648 Activation 0,000 1,931 0,000 Others 411 3 7 Gross Operating Income 252,971 182,724 262,993 Taxes and Other Deductions (58,927) (37,202) (51,918) Net Operating Income 194,044 145,522 211,075 Net Operating Income from Services 161,279 128,909 149,480 Net Operating Income from Sales 32,765 16,613 61,595 Operating Costs and Expenses R$ thousands 1Q00 1Q99 4Q99 Cost of Services and Goods 110,446 75,614 156,985 Cost of Services 70,427 53,715 64,991 Cost of Goods and Others 40,019 21,899 91,994 Operating Expenses 82,096 64,646 84,378 Selling Expenses 44,444 19,302 35,055 General Administrative Expenses 10,964 14,874 18,489 Financing Expenses 19,774 28,617 23,205 Other Operating Expenses 6,914 1,853 7,629 Operating Costs and Expenses 192,542 140,260 241,363 Expenses with Doubtful Accounts – DCLD 17,685 10,025 13,961
  • 6. Operating Highlights 1Q00 1Q99 4Q99 Total Customers 1.121.531 665.708 1.034.266 Postpaid 763.742 665.708 755.174 Prepaid 357.789 - 279.092 Estimated population in the region (million) 14,7 14,3 14,7 Municipalities served 217 191 216 Penetration ( TSU ) 8% 5% 7% Market share 85% 98% 86% Marginal market share 84% 77% 75% ARPU 1 - TOTAL R$50 R$67 R$53 ARPU – postpaid 1 R$61 R$67 R$60 ARPU – prepaid 1 R$22 - R$26 MOU ( incoming) 81 103 82 MOU ( outgoing) 60 78 73 MOU -prepaid (outgoing) 19 - 23 MOU -prepaid (incoming)3 79 - 85 Investment ( million ) R$51 R$8 R$129 Gross Additions 133.476 65.689 173.032 Disconnections 46.211 10.362 28.911 Churn 2 4% 2% 3% Points of sale (including Own Shops) 610 503 555 Own Shops 16 10 17 Total Staff 1.197 862 1.156 Full-time 1.103 385 1.024 Contractors and Apprentices 94 477 132 Notes: (1) Average revenue per customer ( Net and without cell phone sales). In1998, the Activation Revenue was excluded. (2) Calculated on the average subscriber base. (3) Data available only for the 4th Quarter/99.
  • 7. TELE CELULAR SUL PARTICIPAÇÕES S.A. BALANCE SHEETS AS OF MARCH 31, 2000 AND DECEMBER 31, 1999 (Expressed in thousands of Brazilian reais) (Translation of the original in Portuguese) A S S E T S Parent Company . Consolidated . March 31, 2000 December 31, 1999 March 31, 2000 December 31, 1999 CURRENT ASSETS Cash and marketable securities 20 673 1,985 2,084 Accounts receivable from services - - 184,612 178,838 Accounts receivable from sales of products - - 30,748 33,793 Receivable from subsidiaries - 21,415 - - Allowance for doubtful accounts - - (27,218) (21,065) Inventories - - 24,776 44,993 Dividends receivable 12,058 11,994 - - Recoverable and deferred taxes 2,363 2,993 22,467 33,829 Prepaid expenses - - 13,399 2,233 Other current assets 1,559 608 16,577 18,006 ---------- ---------- ---------- ---------- 16,000 37,683 267,346 292,711 ---------- ---------- ---------- ---------- LONG-TERM ASSETS Receivable from subsidiaries 134,431 114,008 - - Recoverable and deferred taxes - - 44,516 40,521 Other long-term assets 977 795 12,265 9,931 ---------- ---------- ---------- ---------- 135,408 114,803 56,781 50,452 ---------- ---------- ---------- ---------- PERMANENT ASSETS Investments 449,238 439,922 20 20 Property and equipment 64 30 814,284 791,022 Deferred assets - - 17,396 18,319 ---------- ---------- ------------ ------------ 449,302 439,952 831,700 809,361 ---------- ---------- ------------ ------------ Total assets 600,710 592,438 1,155,827 1,152,524 ====== ====== ======= =======
  • 8. TELE CELULAR SUL PARTICIPAÇÕES S.A. BALANCE SHEETS AS OF MARCH 31, 2000 AND DECEMBER 31, 1999 (Expressed in thousands of Brazilian reais) (Translation of the original in Portuguese) LIABILITIES AND SHAREHOLDERS’ EQUITY Parent Company . Consolidated . March 31, 2000 December 31, 1999 March 31, 2000 December 31, 1999 CURRENT LIABILITIES Loans and financing - 5 241,097 214,991 Suppliers 2,953 3,953 58,418 112,833 Taxes and contributions 705 591 - - Salaries and social charges 3,801 3,934 6,478 5,980 Dividends payable 15,844 15,575 18,961 19,061 Provision for contingencies 462 631 1,173 1,520 Payable to subsidiaries - 2,908 - - Direct and indirect taxes - - 25,386 27,127 Other current liabilities 1,187 1,459 26,113 58,586 ---------- ---------- ---------- ---------- 24,952 29,056 377,626 440,098 ---------- ---------- ---------- ---------- LONG-TERM LIABILITIES Loans and financing - - 55,224 7,207 Provisions 2,874 2,341 6,851 5,400 Indirect taxes - - 14,705 10,150 Other long-term liabilities 75 75 75 75 ---------- ---------- ---------- ---------- 2,949 2,416 76,855 22,832 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- MINORITY INTEREST - - 128,538 128,628 ---------- ---------- ---------- ---------- SHAREHOLDERS’ EQUITY Capital Stock 175,872 175,872 175,872 175,872 Legal reserve 16,744 16,744 16,744 16,744 Profit Reserves 126,655 126,655 126,655 126,655 Retained earnings 253,538 241,695 253,537 241,695 ---------- ---------- ---------- ---------- 572,809 560,966 572,808 560,966 ---------- ---------- ---------- ---------- Total liabilities and shareholders’ equity 600,710 592,438 1,155,827 1,152,524 ====== ====== ====== ======
  • 9. TELE CELULAR SUL PARTICIPAÇÕES S.A. CONSOLIDATED STATEMENTS OF INCOME FOR THE QUARTER ENDED MARCH 31, 2000 AND 1999 (Expressed in thousands of Brazilian reais) (Translation of the originally issued in Portuguese) Parent Company Consolidated Three months Three months Three months Three months ended March 31, ended March 31, Ended March 31, Ended March 31, 2000 1999 2000 1999 Gross revenue - - 252,971 182,724 Deductions - - (58,927) (37,202) ---------------- ---------------- ---------------- ---------------- Net revenue - - 194,044 145,522 Cost of sales - - (110,506) (75,614) ---------------- ---------------- ---------------- ---------------- Gross profit - - 83,538 69,908 Operating income (expenses), net Selling expenses - - (44,444) (19,302) General and administrative (913) (550) (10,964) (14,874) Financial income (expenses) 5,758 23,488 (13,729) (18,217) Other operating income (expenses), net (660) 190 4,580 1,769 Income from the investments in subsidiaries 9,316 559 - - ---------------- ---------------- ---------------- ---------------- Operating profit (loss) 13,501 23,687 18,981 19,284 Non-operating expenses, net - - - - ---------------- ---------------- ---------------- ---------------- Income before taxes and profit sharing 13,501 23,687 18,981 19,284 Provision for income tax and social contribution (1,580) (12,301) (13,889) (15,395) Deferred income tax 220 4,671 7,178 9,042 Profit sharing (299) - (518) (219) Minority interests - - 90 3,345 ---------------- ---------------- ---------------- ---------------- Net profit (loss) 11,842 16,057 11,842 16,057 ========= ========= ========= ========= Number of shares outstanding (in thousands) 334,399,027 334,399,027 334,399,027 334,399,027 ========= ========= ========= ========= Net profit (loss) per thousand shares 0.04 0.05 0.04 0.05 ========= ========= ========= =========

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