Contacts:
Tele Nordeste Celular Participações S.A.
Walmir Urbano Kesseli
55.81.3302.2813
Leonardo Wanderley
55.81.33...
In March 2004 the methodology of calculating the market share has been adjusted, to the
ANATEL´s model, w...
Selected Financial Data (in thousands of Reais)
1st Qtr/04 4th Qtr...
Consolidated net operating expenses in the first quarter totaled R$ 83.1 million, representing a
13.21% inc...
Net Income
(R$MM)
47.0
...
Realization of part of the Special Reserve of Dividends Payable
The General Shareholders’ Meeting (AGO) held ...
Consolidated Historical Data
1st Qtr./04 4th Qtr./03 ...
Balance Sheet
March 31, 2004 and 2003
(In thousands of Reais)
Parent Comp...
Balance Sheet
March 31, 2004 and 2003
(In thousands of Reais)
Parent Comp...
Income Statement
For the quarters ended in March 31, 2004 and 2003
(In thousands of Reais)
...
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Press Release 1 Q04 Tele Nordeste Celular En

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


Transcripts - Press Release 1 Q04 Tele Nordeste Celular En

  • 1. Contacts: Tele Nordeste Celular Participações S.A. Walmir Urbano Kesseli 55.81.3302.2813 Leonardo Wanderley 55.81.3302.2594 leonardo.wanderley@timnordeste.com.br Polyana Maciel 55.81.3302.2593 polyana.maciel@timnordeste.com.br TELE NORDESTE CELULAR PARTICIPAÇÕES S.A. ANNOUNCES RESULTS FOR THE FIRST QUARTER 2004 Jaboatão dos Guararapes, May 03, 2004, Tele Nordeste Celular Participações S.A. (NYSE: TND, BOVESPA: TNEP3, TNEP4) (“Tele Nordeste Celular” or “the Company”), the holding company that controls the cellular telecommunication service carriers, holders of authorizations for mobile personal services (SMP) in the states of Piauí, Ceará, Rio Grande do Norte, Paraíba, Pernambuco and Alagoas, under the TIM brand name, announced today its res ults for the first quarter of 2004. Highlights ⇒ Expansion of GSM coverage : 81 cities and 43.9% of population in overall region at March ‘04; ⇒ Gross additions of 177,368 representing an increase of 45.7% YoY; ⇒ Net additions of 90,298 lines, an increase of 75.8% YoY, reaching 2.3 million lines, which represents an increase of 14.4% YoY; ⇒ Consolidated net revenue from operations totaled R$ 250.8 million at the end of March 2004 representing an increase YoY of 4.8%; ⇒ An expressive EBITDA of R$107,861 million in the first quarte r ’04 6.2% increase YoY; ⇒ Consolidated net income totalized R$ 47.0 million at the end of March 2004. Commercial activities during the first quarter of 2004 resulted in consolidated gross additions of 177,368 lines, of which 58.650 were GSM, compared to the 121,694 lines in the first quarter of 2003. In March, the Tele Nordeste Celular operating company as a whole totaled 2,262,823 lines, 31,2% were post-paid customers. Consolidated net additions during the first quarter of 2004 totaled 90,298 lines, all of which in the prepaid system, significantly stronger then the 51,356 lines in the first quarter of 2003, all in the prepaid system.
  • 2. In March 2004 the methodology of calculating the market share has been adjusted, to the ANATEL´s model, which has produced an increment in the total mobile market lines leading to a reduction in the TND market share to 46.4%.The penetration rate in the region was estimated at 17.2%, compared to the penetration rate in Brazil of approximately 28.9% (49.1 million lines – Source: Anatel – March/2004). GSM Development GSM, now in The first quarter of 2004 marked the expansion of the GSM technology. The GSM coverage more than 80 reached 43.9% of the population in overall region, covering 81 municipalities (10 in 2004). TND municipalities has 712 GSM base transceiver stations in operation, o which 80 were installed in the first f quarter 2004. Financial Highlights Consolidated net revenue from operations for the first quarter of 2004 reached R$ 250.8 million, representing a growth of 4.8% when compared to R$ 239.3 million in first quarter in 2003. This growth was mainly due to a 5.3% growth in service revenues. ARPU The blended average revenue per user, net of taxes, for the first quarter of 2004 totaled R$ 34.6 per month, compared to R$ 37.0 per month registered in the first quarter of 2003, as a result of strong net additions, mainly in prepaid system. Evolution in Net Revenue from Operations (in R$ millions) +4.8 250.8 239.3 18.4 18.6 +5.3 232.4 220.7 1Q 03 1Q 04 Services Handsets
  • 3. Selected Financial Data (in thousands of Reais) 1st Qtr/04 4th Qtr/03 1st Qtr/03 Gross Revenue from Services 301,963 322,537 283,738 Gross Revenue from Handsets 25,577 23,980 24,089 - Taxes (76,708) (83,410) (68,572) Net Operating Income 250,832 263,107 239,255 - Cost of Services Sold (79,197) (94,733) (88,942) - Cost of Goods Sold (20,456) (18,642) (19,321) Gross Profit 151,179 149,732 130,992 Consolidated gross profit of R$151.2 million for the first quarter of 2004 increased 15.4% when Gross profit +15.4% compared to the first quarter of 2003. This increase was due to the 6.4% increase in gross service increase YoY revenues, allied with the 6.2% increase on gross revenues from handsets and the reduction in the cost of services sold. Net Income Gross Profit (R$MM) 151.2 +15.4% 131.0 1Q 03 1Q 04 Selected Financial Data (in thousands of Reais) 1ST Qtr/04 4th Qtr/03 1ST Qtr/03 Operating Expenses - Selling (63,388) (48,036) (55,464) - General and administrative (23,389) (24,103) (20,645) - Other operating expenses, net (7,700) (2,963) (7,185) Subtotal (94,477) (75,102) (83,294) - Net financial expenses (revenues) 11,386 21,234 9,897 Total (83,091) (53,868) (73,397)
  • 4. Consolidated net operating expenses in the first quarter totaled R$ 83.1 million, representing a 13.21% increase in relation to the first quarter of 2003. This is mainly attributed to the increase of 14% in selling expenses, as a result of our GSM overlay coupled with an increase of the competitive environment. SAC Loyalt, Subscriber acquisition cost (“SAC”) for the first quarter of 2004 was R$ 122, compared to the R$ 100 acquisitions in the first quarter of 2003. This increase is mainly attributed to an strategy in our loyalty program, and acquisition and incentive to the migration of the customers from TDMA to the GSM network. incentive to the migration to During the first quarter of 2004, bad debt was 4.8% of gross operating revenues, compared to 3.7% GSM for the same period in 2003. This increase in mainly attributed to non-receivables values from fix operators. EBITDA In the first quarter of ’04, Tele Nordeste Celular reported EBITDA of R$107.9 million, corresponding increase of to an EBITDA margin of 43.0%. This result is significant taking in account the highly competitive 6.2% environment and the implementation of the GSM network as well as the overlay to SMP (Personal Communication System). EBITDA - R$ Million EBITDA Margin % +6.2% 107,9 101,6 +0.5p.p 42.5% 43.0% 1Q 03 1Q 04 For the first quarter of 2004, the company reported an EBIT of R$ 56.7 million, an EBIT margin of 22.6%, compared to EBIT of R$ 49.5 million, an EBIT margin of 21.3% during the first quarter of 2003, representing an increase of 14.5% YoY. Tele Nordeste Celular’s consolidated net income for the first quarter of 2003 amounted to R$ 47.0 million compared to R$ 33.0 million in the first quarter of 2003. This increase is mainly attributed to our focus on growth with profitability coupled with the effect of the fiscal benefit achieved with ADENE, Agency for Development of the Northeast Region of Brazil, benefits of the following tax incentives: 75% reduction in income tax and non-refundable surtaxes.
  • 5. Net Income (R$MM) 47.0 +42.4% 33.0 1Q 03 1Q 04 Goodwill On June 30, 2000, Tele Nordeste Celular and its operating company completed a restructuring process that resulted in the transfer of the goodwill paid during the privatization process from Bitel Participações S.A., the parent company of Tele Nordeste Celular, to the operating company. This restructuring was aimed at taking advantage of a tax benefit estimated at R$200 million over 8 years, through 2008, which will be incorporated into each operating company’s share capital. During the first quarter of 2004, the consolidated amortization of the premium, net of the reversal of the provision for the integrity of shareholders’ equity, was R$ 6.3 million, generating a fiscal benefit of the same value. Dividends The General Shareholders’ Meeting (AGO) that was held on April 22, 2004, approved Management’s proposal regarding the payment of dividends. This proposal included a distribution on of annual dividends equivalent to 25% of adjusted net income, after the 5% deduction (R$10.4 million) for the legal reserve. This amount represents total dividends of R$30.4 million net of income taxes, to be paid under equal conditions among the classes of shares, as allowed by Brazilian legislation. The date set to begin paying dividends is June 21, 2004. The Notice to Shareholders informing the dividend amount restated by the TR benchmark rate, from the date of its distribution in December 30, 2003 until its payment date on June 21, 2004 will be published in the next few days.
  • 6. Realization of part of the Special Reserve of Dividends Payable The General Shareholders’ Meeting (AGO) held on April 22, 2004, approved Management’s proposal for realizing part of the special reserve of dividends payable, in the amount of R$10.3 million, which is the difference between the value the Company is receiving from its operating company in the form of dividends relative to fiscal 2003, (R$ 40.7 million), and what the Company will distribute to its shareholders in the form of dividends for the current year (R$ 30.4 million). The Notice to Shareholders informing the dividend amount restated by the TR benchmark rate, from the date of its distribution in December 30, 2003 until its payment date on June 21, 2004, will be published in the next few days. Debt Profile Tele Nordeste Celular ended the first quarter of 2004 with a consolidated loan and financing debt of R$ 60.5 million, all of which contracted in foreign currency (U.S. Dollars), which currency risks were eliminated via financial instruments. At March 31, the company’s net cash position was R$ 324.1 million. Investments Keep on During the first quarter of 2004, Tele Nordeste Celular and its operating company invested R$ GSM 11.3 million. The investments were mainly allocated towards implementation of the GSM expansion network, as well as to optimize the TDMA network. On March 31, 2003, Tele Nordeste Celular and its operating company had 935 radio base stations (ERBs), of which 9 were mobile and provided services to 308 municipalities, corresponding to a coverage of 75% of the population, using TDMA technology. The Company also counted with 712 base transceiver stations (BTSs), of which 13 were mobile and provided services to 81 municipalities, corresponding to a coverage of 48% of the urban coverage, using GSM technology. Human Resources On March 31, 2004, Tele Nordeste Celular and its operating company had 1.033 employees including full-time employees. Annexes: - Consolidated Selected Historical Data - Consolidated EBITDA calculation - Financial Statements at March 31, 2004 and 2003 ________________________________________________________________________ This press release contains forward-looking statements. Statements that are not statements of historical fact only reflect the beliefs and expectations of the Company’s management. The words “anticipates,” “believes,” “est imates,” “expects,” forecasts,” predicts,” “plans, ” “projects,” and similar words are intended to identify these statements, which necessarily involve known and unknown risks and uncertainties, forecast or not by the Company. Accordingly, the actual results of operations of the Company may be different from the Company’s current expectations, and the reader should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments.
  • 7. Consolidated Historical Data 1st Qtr./04 4th Qtr./03 1st Qtr./03 Clients - Total 2,262,823 2,172,525 1,977,199 Net Additions 90,298 71,947 51,356 Market share (%) 46* 54 59 Year-overyear growth (%) 14.4 12.8 9.3 Estimated population of region (in millions) 28,3 27.2 27.2 Penetration rate (%) - Tele Nordeste 8.0 7.7 7.1 - Total 17.1 14.1 12.0 Municipalities covered - TDMA 308 308 307 - GSM 81 71 -- MOU total 102 104 104 Churn total (%) 3.9 4.9 3.6 Blended ARPU (R$) - Total 34.6 38.8 36.9 SAC – Subscriber acquisition cost (R$) 122 82 100 Digitalization rate (%) - Network 78.4 77 77 - Clients 99 99 98 Coverage (%) - Population - TDMA 75 75 75 - GSM 48 41 -- - Geographical área (%) - TDMA 29 29 29 - GSM 8 7 -- Workforce 1,033 1,023 1,031 (*) Change in the methodology of calculation Consolidated EBITDA Calculation (in thousands of Reais) st th st 1 Qtr./04 4 Qtr./03 1 Qtr./03 Reclassified Reclassified Net operating revenue 250,832 270,009 239,255 Operating income 68,088 93,086 58,609 Timnet - 283 788 Depreciation 43,703 44,532 45,855 Goodwill amortization 6,295 6,295 6,295 GSM license amortization 1,161 1,161 - Financial income (20,668) (40,239) (52,384) Financial expenses 9,282 19,005 42,488 EBITDA 107,861 124,123 101,651 % EBITDA 43.00% 45,97% 42,49%
  • 8. Balance Sheet March 31, 2004 and 2003 (In thousands of Reais) Parent Company Consolidated 03.31. 2004 03.31.2003 03.31.2004 03.31.2003 Assets Current assets Cash equivalents 21,157 154 324,092 442,293 Trade accounts receivable - - 218,137 174,735 Inventory - - 20,861 10,832 Taxes and contributions receivable 2,017 4,747 85,883 43,974 Deferred income and social contribution 1,161 910 53,879 51,812 taxes Dividends and interest on shareholders’ 9,169 30,794 - - equity Other assets 1,155 879 30,557 42,078 34,659 37,484 733,409 765,724 Noncurrent assets Deferred income and social contribution 3,926 7,418 87,862 118,425 taxes Loan to subsidiaries 3,579 4,859 - Other assets 51 46 21,534 39,225 7,556 12,323 109,396 157,650 Permanent assets Investments 937,688 759,667 - 9,393 Property, plant and equipment 2,272 3,414 655,599 540,788 Deferred - - - - 939,960 763,082 655,599 550,180 982,175 812,888 1,498,404 1,473,555
  • 9. Balance Sheet March 31, 2004 and 2003 (In thousands of Reais) Parent Company Consolidated 03.31.2004 03.31.2003 03.31.2004 03.31.2003 Liabilities Current liabilities Suppliers 1,514 1,560 130,611 50,941 Financing and loans - - 40,374 56,091 Debêntures - - - 222,216 Taxes payable 410 322 45,390 57,520 Salaries and vacation pay 4,685 2,215 9,079 5,176 Subsidiaries - 27,694 - - Dividends and interest on shareholders’ 43,949 32,870 51,430 47,671 equity Other liabilities 415 4,877 53,946 28,749 50,973 69,537 330,829 468,364 Noncurrent liabilities Financing and loans - - 20,077 83,828 Subsidiaries 2,622 - - - Provision for contingencies 47 240 8,714 17,555 2,669 240 28,791 101,383 Minority interest - - 210,251 160,697 Shareholders’ equity Capital 318,248 288,443 318,248 288,443 Special reserves 144,352 169,533 144,352 169,533 Profit reserves 122,293 122,195 122,293 122,195 Retained earnings 343,640 162,940 343,640 162,940 928,533 743,111 928,533 743,111 982,175 812,888 1,498,404 1,473,555
  • 10. Income Statement For the quarters ended in March 31, 2004 and 2003 (In thousands of Reais) Parent Company Consolidated 03.31.2004 03.31.2003 03.31.2004 03.31.2003 (Reclassified) (Reclassified) Gross Revenues Telecommunication services and sale of goods - - 327,540 307,827 Deductions (taxes and discounts) - - (76,708) (68,572) Net revenue - - 250,832 239,255 Cost of goods sold and services rendered - - (99,653) (108,263) Gross profit - - 151,179 130,992 Operating revenues (expenses) Selling expenses - - (63,388) (55,464) Administrative and general expenses (2,136) (2,721) (23,389) (20,645) Financial expenses (341) (1,799) (9,282) (42,487) Financial income 232 395 20,668 52,384 Equity in income of subsidiaries 48,371 35,547 - (788) Other operating income 2 229 6,190 3,833 Other operating expenses (10) (20) (13,890) (10,230) Operating income (loss) 46,118 31,631 68,088 57,595 Net non operating income (expenses) - 6 (23) (67) Income before income and social contribution taxes 46,118 31,637 68,065 57,528 Income and social contribution taxes 834 1,329 (10,169) (14,516) Reversal of interest on shareholder’s equity - - - Net income before minority interests 46,952 32,966 57,896 43,012 Minority interests - - (10,944) (10,046) Net Income (loss) 46,952 32,966 46,952 32,966 Net income (loss) per lot of thousand shares (R$) 0,013 0,010 Number of shares at March 31, 2004 (thousands) 359,268,490 345,739,620

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