Contacts
Paulo Roberto Cruz Cozza
Chief Financial Officer and Director of Investor Relations
...
The Management
“Tele Celular Sul's performance in the 1Q02 - evidenced by
gross s...
Gross Revenue Breakdown
Total Gross Operating Revenue Total Gross...
EBITDA
The EBITDA reached R$ 93.7 million, representing a 22% growth over the 1st
R$ 93.4 million quar...
The total penetration rate in the concession area was approximately
16%.
5% churn in F...
Highlights
1Q02 1Q01 4Q01
Total subscribe...
TELE CELULAR SUL PARTICIPAÇÕES S.A.
Balance Sheet as of March 31,2002 and December 31,2001
...
TELE CELULAR SUL PARTICIPAÇÕES S.A.
Balance Sheet as of March 31, 2002 and December 31,2001
...
TELE CELULAR SUL PARTICIPAÇÕES S.A.
Income Statement
...
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Press Release 1 Q02 Tele Celular Sul En

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


Transcripts - Press Release 1 Q02 Tele Celular Sul En

  • 1. Contacts Paulo Roberto Cruz Cozza Chief Financial Officer and Director of Investor Relations Joana Dark Fonseca Serafim Investor Relations (41) 312-6862 jserafim@timsul.com.br Rafael J. Caron Bósio Investor Relations (41) 312-6623 rbosio@timsul.com.br Website http://tsu.infoinvest.com.br/ TELE CELULAR SUL PARTICIPAÇÕES S.A. ANNOUNCES ITS CONSOLIDATED RESULTS FOR THE FIRST QUARTER 2002 Curitiba, May 6, 2002 – 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 telecommunication services in Southern Brazil, announces its results for the 1st quarter 2002. Quarter Highlights ü EBITDA of R$ 93.7 million, representing an EBITDA margin of 45%, or 49% considering the net services revenue, and net income of R$ 17.2 million. ü Interconnection charge (TU-M) was increased from R$ 0.2552 per minute to R$ 0.2823 (both net of taxes). ü Tele Celular Sul adjusted its rates upward by 6.9% in Paraná and 4.5% in Santa Catarina. The different percentages mirror different taxation schemes in the two States. ü Launching of the TIM Menu Services Plans through a wide advertising campaign stimulating use. ü Implementation of the “Hot Billing” system, enabling customers to monitor their use by information received via the SMS (Short Message Service). The service is also provided on the Internet. ü “Magic Card” campaign, encouraging the recharge of prepaid cards. ü Launching of the new Investor Relations website, further facilitating the access to the Company. Those interested in enrolling in the direct mailing list to receive information in real time may do so at: http://tsu.infoinvest.com.br/ . 1
  • 2. The Management “Tele Celular Sul's performance in the 1Q02 - evidenced by gross services revenues of R$ 251.6 million, cash generation (EBITDA) of R$ 93.6 million, equal to an EBITDA margin of 49% over the net services revenue and net income of R$ 17.2 million – reflects our policy of balancing growth and profitability” Alvaro P. de Moraes Filho Chief Executive Officer In R$ thousand 1Q02 1Q01 4Q01 Gross Handset Revenue 21,028 7,739 58,373 Gross Services Revenue 251,553 264,687 235,328 Gross Operating Revenue 272,581 272,426 293,701 Total Net Revenue 207,774 187,771 227,332 EBITDA 93,674 76,369 78,962 EBITDA Margin 45% 41% 35% EBITDA margin (without handset sales) 49% 42% 44% Net Income 17,162 14,573 16,851 Net Income per 1,000 shares – R$ 0.05 0.04 0.05 Profit per ADR (10,000 shares) – R$ 0.50 0.40 0.50 Operating Revenue In R$ thousand 1Q02 1Q01 4Q01 Net Services Revenue 191,059 181,693 177,960 Net Handsets Revenue 16,715 6,078 49,372 Total Net Revenue 207,774 187,771 227,332 Net Service Revenue amounted to R$ 191.1 million in the 1Q02, representing 5% and 7% increase over the 1Q01 and 4Q01, respectively. It must be pointed out that, from August 2001, the Company started to sell the handsets directly to its accredited dealers, an activity formerly outsourced. This justifies the increase in the handset sales revenues since then. The ARPU (Average Net Revenue per User) was R$ 39.0 for the ARPU stable at 2001 levels quarter, maintaining the 2001 levels. 2
  • 3. Gross Revenue Breakdown Total Gross Operating Revenue Total Gross Operating Revenue 1Q02 - R$ 272.6 million 1Q01 - R$ 272.4 million Handset Handset Others Sales Sales Company Interconnection 3.5 21.0 7.7 resumes 78.1 handset sales 83.0 activities Interconnection 117.7 0.6 47.4 Others Usage 42.9 143.1 Monthly Fee Monthly fee Usage1 Note:(1) Included R$ 31,5 million in bonuses. Operating Costs and Expenses In R$ thousand 1Q02 1Q01 4Q01 Cost of Services and Handsets 96,098 95,749 125,164 Cost of Services 78,595 77,374 80,057 Cost of Hansets 17,503 18,375 45,107 Selling Expenses 50,391 47,671 49,408 General and Administrative Expenses 17,345 16,478 19,387 TOTAL 163,834 159,898 193,959 Expense with Allowance for Bad Debt and 9,915 5,360 2,883 Losses - PCLD1 Note (1): The PCLD is included in Selling Expenses. 13% reduction Operating costs and expenses totaled R$ 163.8 million, a 2% in Selling increment over the 1Q01, but 15% below the 4Q01, in view of the Expenses, net decrease in the sale of handsets in the period over the last quarter of of bad debt. the year. In the 1Q02, expenses with bad debt were R$ 9.9 million, compared with R$ 5.3 million for the same period in the preceding year, Stabilized representing 4% and 2% of the total gross revenue, respectively. services bad debt That increment stems from the increased provisions for the sale of handsets, mainly in view of the large number of handsets sold in the 4Q01. Depreciation and Amortization Expenses for the quarter were R$ 55.4 million (including the R$ 6.3 million amortization of goodwill), over R$ 47.5 million in the 1Q01 and R$ 53.6 million in the 4Q01. R$100 SAC Subscriber Acquisition Cost (SAC) in the 1Q02 was R$ 100.00, i.e. a in the st 1 Q/02 50% and 10% decrease over the 1st and 4th quarters/2001. 3
  • 4. EBITDA The EBITDA reached R$ 93.7 million, representing a 22% growth over the 1st R$ 93.4 million quarter/2001. The EBITDA margin was 45% over the total net revenue – or EBITDA in the 1Q02 49% over net services revenue the sale of handsets, compared with the 41% and 35% margins for the 1st quarter/2001 and 4th quarter/2001, respectively. Net Income 49% EBITDA margin over the 48% 49% 44% 49% net services 42% 45% 93,7 revenue 41% 43% 35% 45% 93.7 84.4 80.8 79.0 76.4 1Q01 2Q01 3Q01 4Q01 1Q02 Ebitda Ebitda Margin Ebitda Margin Over Service Rev 1Q02 1Q01 4Q01 Net Income -R$ thousand 17,162 14,573 16,851 Net Income per 1,000 shares – R$ 0.05 0.04 0.05 Increased The Net Income was R$ 17.2 million, 18% above the final figure for the 1st Profitability quarter/2001, mainly due to the control of costs. Indebtedness By the end of the 1st quarter/2002, the net indebtedness was R$ 97.3 million, versus R$ 227.2 million for the 1st quarter/2001. Of the total debt, the amount of R$ 49.8 million is loans in dollars, fully hedged as a protection against exchange rate fluctuation. Additionally, a specific part of the BNDES loans, corresponding to R$ 17.5 million, is subject to an interest rate linked to the Bank's “basket of currencies", which includes the U.S. dollar. No hedge facility exists for this specific case. The Net Financial Expense was R$ 8.1 million, in line with the 1st quarter/2001. Market In the quarter, 90,000 gross additions were posted, compared to 112,000 in the 1st quarter/2001. The additions for the period correspond to an acquisition cost 50% below the preceding year, and represent a marginal market share of approximately 52%. By quarter end, the Company had 1,614,000 customers, of which 64% Market 64% were prepaid service users. The estimated 64% market share Share reflects a competitive position in the market. 4
  • 5. The total penetration rate in the concession area was approximately 16%. 5% churn in From the and of the first half of 2001, the Company started to sell the 1Q02 prepaid services with a 90 day cycle, while other plans use 180 day cycles; thus, there is an overlap in the churn concerning the two cycles in the quarter, increasing the churn in the period from 4% to 5% over the 4Q01. Subsequent Events On April 16, 2002 the Annual Stockholders' Meeting approved Tele Capitalization of the tax benefit Celular Sul's increase in capital, on behalf of Bitel Participações S.A (controlling company), concerning the tax benefit originating from the payment of the goodwill at the time of Tele Celular Sul's privatization, as provided under art. 7, paragraph 1 of CVM Instruction 319/99. The capital increase corresponds to seventeen million, six hundred and thirty three thousand, fifty-two real and twenty-four cents (R$ 17,633,052.24). The subscription period extends from Apr/17/02 to May/16/02. Further information can be obtained directly at the Company's website. New bank The new Sistema de Pagamentos Brasileiro - SPB (Brazilian payment Payment System) consists basically in transforming the processing system and liquidation of payments made by economic agents (individuals, organizations, companies, the Government, the Central Bank and financial institutions), to be made electronically and in real time, that is, practically at the same time or on the same day. The main concept underlying the new system is the actual availability of funds for any transfer between the agents to take place, thereby eliminating transfers without sufficient funds. In what concerns Tele Celular Sul, the Company's internal treasury procedures were adjusted to fit the new system with no additional impact. __________________________________________________________________ "This press release contains forward-looking statements. Those expectations are based on a series of assumptions, and subject to the risks and uncertainties inherent to forward-looking statements. The results may differ materially from the expectations expressed in the forward-looking statements if one or more of the assumptions and expectations prove to be imprecise or do not materialize.” 5
  • 6. Highlights 1Q02 1Q01 4Q01 Total subscribers 1,614,256 1,486,673 1,603,913 Postpaid 580,196 736,534 605,592 Prepaid 1,034,060 750,139 998,321 Estimated population in the region (million) 15.0 14.7 14.8 Municipalities served 232 219 232 Total estimated penetration 16% 14% 16% Market share 64% 73% 66% 1 TOTAL ARPU R$39 R$42 R$38 TOTAL MOU 105 119 118 SAC R$100 R$200 R$110 Investments (million) R$6 R$30 R$54 Net additions 10,343 70,189 69,347 2 5% 3% Churn 4% Dealers (including own shops) 947 722 937 Employees 1,150 1,215 1,178 Note: (1) Average Net Revenue per customer. (2) Calculated over the average customer base. EBITDA Calculation In R$ thousand 1Q02 1Q01 4Q01 Net operating revenue 207,774 187,771 227,332 1 Operating profit 30,149 20,159 16,585 Depreciation 48,694 40,732 46,914 Goodwill amortization 6,744 6,736 6,744 Financial revenue (13,696) (10,785) (22,098) Financial expenses 21,783 19,527 30,817 EBITDA 93,674 76,369 78,962 EBITDA Margin (%) 45% 41% 35% Note: (1) Included Equity interest in income of subsidiary and associated companies since 4Q01. Operating Revenue In R$ thousand 1Q02 1Q01 4Q01 Handset sales 21,028 7,739 58,373 1 Use 117,731 143,141 106,135 Monthly subscription fee 47,370 42,866 44,952 Interconnection charge 82,927 78,062 80,530 Others 3,525 618 3,711 Gross Operating Revenue 272,581 272,426 293,701 Taxes and Other Deductions (64,807) (84,655) (66,369) Net Operating Revenue 207,774 187,771 227,332 Net Operating Services Revenue 191,059 181,693 177,960 Net Operating Sales Revenue 16,715 6,078 49,372 Note: (1) In the 1st Q /01 the use includes R$ 31,2 billion in bonuses. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 6
  • 7. TELE CELULAR SUL PARTICIPAÇÕES S.A. Balance Sheet as of March 31,2002 and December 31,2001 In thousands of reais (Translation of the original Portuguese) Parent Company Consolidated Mar/2002 Dec/2001 Mar/2002 Dec/2001 Assets Current assets Cash and banks 38 1,099 2,525 5,462 Marketable securities 6,882 9,843 233,936 134,397 Trade accounts receivable 141,728 148,862 Inventories 13,279 21,856 Deferred and recoverable taxes 3,392 6,422 42,269 53,197 Interest over shareholders' capital receivable 17,762 17,664 Dividends receivable 864 859 Other 2,453 832 22,116 12,423 31,391 36,719 455,853 376,197 Non current assets Subsidiaries 2,700 3,176 Deferred and recoverable taxes 802 774 232,613 241,254 Judicial deposits 10,950 10,908 Other 9 14 1,561 1,889 3,511 3,964 245,124 254,051 Permanent assets Investments 823,049 810,929 26,726 28,707 Property, plant and equipment 92 96 735,598 775,575 Deferred charges 64,981 67,649 823,141 811,025 827,305 871,931 Total 858,043 851,708 1,528,282 1,502,179 The accompanying notes are an integral part of these financial statements. 7
  • 8. TELE CELULAR SUL PARTICIPAÇÕES S.A. Balance Sheet as of March 31, 2002 and December 31,2001 In thousands of reais (Translation of the original in Portuguese) Parent Company Consolidated 1Q02 4Q01 1Q02 4Q01 Liabilities and stockholders' equity Current liabilities Trade accounts payable 1,051 2,330 72,647 63,389 Loans and financings 24,523 21,987 Debentures 17,888 8,860 Salaries and social charges 9,907 10,389 12,169 13,083 Taxes and contributions payable 28 854 24,187 20,794 Interest on shareholders' equity payable 20,532 20,450 26,713 26,636 Dividends payable 1,754 1,755 2,180 2,184 Other liabilities 2,127 5,247 7,211 14,548 35,399 41,025 187,518 171,481 Noncurrent liabilities Loans and financings 91,395 103,539 Debentures 200,000 200,000 Taxes and contributions payable 66,328 60,727 Pension plan contributions 2,292 2,239 2,292 2,239 Provision for contingencies 87 40 7,314 6,095 Other 75 75 2,379 2,354 367,329 372,675 Minority interest 153,170 149,694 Shareholders' equity Capital 245,033 245,033 245,033 245,033 Capital reserve 190,469 195,695 190,469 195,695 Revenue reserves 367,601 367,601 367,601 367,601 Retained earnings 17,162 17,162 820,265 808,329 820,265 808,329 Total 858,043 851,708 1,528,282 1,502,179 The accompanying notes are an integral part of these financial statements. 8
  • 9. TELE CELULAR SUL PARTICIPAÇÕES S.A. Income Statement Balance sheets as of March 31, 2001 and March 31, 2002 In thousands of reais (Translation of the original in Portuguese) Parent Company Consolidated 1Q02 1Q01 1Q02 1Q01 Gross revenues 272,581 272,426 Deductions from gross revenues (64,807) (84,655) Net revenues 207,774 187,771 Cost of goods sold and services rendered (96,098) (95,749) Gross profit 111,676 92,022 Operating revenues (expenses) Selling (50,391) (47,671) General and administrative (865) (669) (17,345) (16,478) Equity 17,773 14,582 (1,554) Other operating income (expense), net (312) (629) (5,704) 1,028 16,596 13,284 (74,994) (63,121) Operating profit before financial results 36,682 28,901 Financing revenues (expenses) Financial income 1,496 2,257 13,696 10,785 Financial expenses (326) (360) (21,783) (19,527) 1,170 1,897 (8,087) (8,742) Operating profit 17,766 15,181 28,595 20,159 Non-operating income (expenses), net 296 Income before taxes and profit sharing 17,766 15,181 28,595 20,455 Income tax and social contribution 59 (145) (7,118) (2,974) Employees profit sharing (663) (463) (838) (626) Minority interest (3,477) (2,282) Net income for the year 17,162 14,573 17,162 14,573 Net income per thousands shares (R$) 0,05 0,04 The accompanying notes are an integral part of these financial statements. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 9

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