TELE CELULAR SUL PARTICIPAÇÕES S. A.
Contatos
TELE CELULAR SUL PARTICIPAÇÕES S.A.
Ruggero Caterini
Diretor de ...
The table below shows the breakdown of gross operating revenue in the first quarter 1999, in
comparison with the correspon...
The following table shows the breakdown of costs with regard to services, sales of equipment,
marketing expenses and gener...
Controlling Shareholders
On March 26, 1999, Bitel Participações S.A. purchased shares of TSU from UGB Participações
S.A. ...
TELE CELULAR SUL PARTICIPAÇÕES S.A.
BALANCE SHEETS AS OF MARCH 31,1999
(Expressed in thousands of Brazilian rea...
TELE CELULAR SUL PARTICIPAÇÕES S.A.
BALANCE SHEETS AS OF MARCH 31,1999
(Expressed in thousands of Brazilian reais)...
TELE CELULAR SUL PARTICIPAÇÕES S.A.
STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 1999
...
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Press Release 1 Q99 Tele Celular Sul En

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


Transcripts - Press Release 1 Q99 Tele Celular Sul En

  • 1. TELE CELULAR SUL PARTICIPAÇÕES S. A. Contatos TELE CELULAR SUL PARTICIPAÇÕES S.A. Ruggero Caterini Diretor de Finanças e de Relações com Investidores Joana Dark Fonseca Serafim Relações com Investidores (41) 312-6862 jserafim@telecelularsul.com.br Rafael J. Caron Bosio Relações com Investidores (41) 312-6623 rbosio@telecelularsul.com.br Website http:/www.timsul.com.br TELE CELULAR SUL ANNOUNCES FIRST QUARTER 1999 RESULTS. Curitiba, May 18, 1999 – Tele Celular Sul (TSU) - (BOVESPA: TCLS3, TCLS6; NYSE: TSU), the holding company of Telepar Celular S. A., Telesc Celular S.A. and CTMR Celular S.A., leading providers of cellular telephony in the southern region of Brazil, today announced its first quarter 1999 results. Unconsolidated net income was R$16.1 million. (Figures in accordance with the Brazilian GAAP (Corporate Law)). Consolidated Results For the first quarter 1999, the gross revenue amounted to R$182.7 million, an increase of 9% when compared with first quarter 1998. The increase is largely due to a 37% increase in the number of subscribers during the quarter. The increase of the revenue did not coincide with the growth in the number of subscribers due to a restructuring of services charges, initiated in October 1998. Activation fees were reduced by 88%, basic subscription by 30.5%, and local use by 8%. As part of its marketing strategy TSU waived the activation fee and allowed 100 minutes of utilization free of charge for on a temporary basis. The sale of equipment in the quarter amounted to R$ 19.3 million or 11% of gross revenue.
  • 2. The table below shows the breakdown of gross operating revenue in the first quarter 1999, in comparison with the corresponding period last year: Thousandds of R$ First Quarter First Quarter 1999 1998 Gross Operating Revenue 182,724 167,721 Sales of equipment 19,306 -- Use of services 88,267 89,487 Rent 8,100 11,112 Subscription 36,380 39,448 Network Use 28,176 21,418 Installation Fee 1,931 5,165 Additional Services 717 1,484 Others (153) (393) Tax and other deductions 37,202 36,988 Net Operating Revenue 145,522 130,733 Cash flow or EBITDA (income before interest, taxes, depreciation and amortization) amounted to R$ 57.2 million which represents a 39.4% margin on net operating revenue. In the first quarter of 1998, this margin was 51.2%. The 1999 EBITDA level is a consequence of adjustments made in the face of increased competition. Depreciation TSU evaluated the current technological level of its equipment and decided to adopt the accelerated depreciation method. As a consequence, the annual depreciation rate of automatic switching and transmission equipment, the main fixed assets items, increased from 8% and 10%, respectively, to 14%, resulting in a charge of R$5.8 million. The cost of sales and services was R$ 75.6 million, excluding R$ 21.8 million for the sale of equipment. This represents an increase of 20% when compared with the same period of the previous year. This increase is mainly due to the depreciation effect explained in the previous paragraph. Selling and general administrative expenses were R$19.3 million and R$14.8 million, respectively. If we exclude the provisions for doubtful accounts, which were included as selling expenses in 1999, this represents an increase of 12% and 4% in comparison with the same period 1998. In 1998, these expenses were allocated to sales and general administrative expenses. The provision for doubtful accounts was R$10.0 million or 5% of the gross operating revenue.
  • 3. The following table shows the breakdown of costs with regard to services, sales of equipment, marketing expenses and general administrative expenses: Thousands of R$ First Quarter, First Quarter, 1999 1998 Wages and Salary 4,135 2,765 Materials 563 159 34,282 34,750 Third party services Rent 14,074 11,491 Depreciation/Amortization 19,771 11,190 Other operating expenses 5.091 14,769 Cost of equipment sold 21,899 0 Provisions for doubtful accounts 10,025 1,910 Total 109,790 77,034 Currency Devaluation The first quarter 1999 saw a dramatic change in the Brazilian monetary policy leading to the unrestricted fluctuation of its currency. As a result, net financial expenses amounted to R$28.6 million. By the end of the quarter, TSU began the process of hedging its financial liabilities that were exposed to foreign currency. Total indebtedness reached R$87.4 million referring to dollar-denominated loans contracted in the previous periods. Net Income The net income for the period was R$ 16.1 million, representing R$0.05 per 1,000 shares. Investments Continuing the expansion and modernization program, TSU invested R$8.1 million thereby increasing its number of subscribers and municipalities covered and improving market penetration. By March 31, 1999, 55% of the network was converted to the digital system. These investments were mostly supported by TSU’s network funds. At the close of the quarter, TSU had a market share of approximately 98%. First Quarter 99 Subscribers 665,708 Penetration per 100 inhabitants 5% Municipalities covered 191 Average revenue per user (ARPU) 1 R$95,00 Minutes per subscriber 175 Total Employees 385 (1) Gross Revenue included sales of equipament.
  • 4. Controlling Shareholders On March 26, 1999, Bitel Participações S.A. purchased shares of TSU from UGB Participações S.A. Bitel currently owns 51.8% of voting shares thus becoming TSU’s major shareholder. Overview and Outlook Notwithstanding the turbulence of the macroeconomic scenario of the first quarter 1999, TSU increased its client base by 55,327 subscribers. It also continued the process of network digitalization thus further increasing its leadership position in an ever increasingly competitive environment. As part of its on-going strategy to develop new products, TSU launched its prepaid service called Pronto on April 22, 1999, which allows clients to accumulate credits for free minutes of service. Recent macroeconomic statistics show positive signals for Brazil and thus allowing it to recover international credibility. Management is confident in the TSU’s continuous growth.
  • 5. TELE CELULAR SUL PARTICIPAÇÕES S.A. BALANCE SHEETS AS OF MARCH 31,1999 (Expressed in thousands of Brazilian reais) (Translation of the original in Portuguese) A S S E T S March 31, 1999. CURRENT ASSETS Cash and marketable securities 86,163 Accounts receivable from services 95,343 Accounts receivable from sales of 13,785 products Allowance for doubtful accounts (24,277) Inventories 26,835 Receivable from subsidiaries - Deferred and recoverable taxes 53,653 Other current assets 27,156 ----------- 278,658 ----------- LONG-TERM ASSETS Receivable from subsidiaries 63 Deferred and recoverable taxes 599 ----------- 662 ----------- PERMANENT ASSETS Investments 20 Property and equipment 611,068 Deferred assets 383 ----------- 611,471 ----------- Total assets 890,791 ====== The accompanying notes are integral part of these balance sheets.
  • 6. TELE CELULAR SUL PARTICIPAÇÕES S.A. BALANCE SHEETS AS OF MARCH 31,1999 (Expressed in thousands of Brazilian reais) (Translation of the original in Portuguese) LIABILITIES AND SHAREHOLDERS’ EQUITY March 31, 1999. CURRENT LIABILITIES Loans and financing 75,455 Suppliers 34,183 Taxes and contributions 20,185 Dividends payable 42,057 Provision for Contingencies 2,708 Other current liabilities 9,020 ----------- 183,608 ----------- LONG-TERM LIABILITIES Loans and financing 12,000 Provision for Pension Plan 1,805 Other long-term liabilities 820 ----------- 14,625 ----------- MINORITY INTEREST 135,640 ----------- 150,265 ----------- SHAREHOLDERS’ EQUITY Capital Stock 175,872 Legal reserve 15,027 Profit Reserves 142,408 Retained earnings 223,611 ----------- 556,918 ----------- Total liabilities and shareholders’ 890,791 equity ====== The accompanying notes are integral part of these balance sheets.
  • 7. TELE CELULAR SUL PARTICIPAÇÕES S.A. STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 1999 (In thousands of Brazilian reais) 3 months ended March 31, 1999 Gross revenue 182,724 Deductions (37,202) ------------- Net revenue 145,522 Cost of sales (75,614) ------------- Gross profit 69,908 Operating income (expenses) Selling expenses (19,302) General and administrative (14,874) Financial income (expenses) (18,217) Other operating income, net 1.769 Income from the investments in - subsidiaries ------------- Operating income 19,284 Non-operating income (expenses) - ------------- Income before taxes and profit sharing 19,284 Provision for income tax and social (15,395) contribution Deferred Income Tax 9,042 Profit sharing (219) Minority Interests 3,345 ------------- Net income 16,057 ====== Number of shares outstanding (in 334,399,027 thousands) ========= Net income per share 0.00005 ========= The accompanying notes are integral part of these statements.

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