TELE CELULAR SUL PARTICIPAÇÕES S.A.
Contacts
TELE CELULAR SUL PARTICIPAÇÕES S.A.
Ruggero Caterini
Chief Financial Officer ...
Key Figures
In R$ thousand
...
Composition of the Gross Operating Revenue Composition of the Gross Operating Revenue
2nd Qua...
During the initial phase of implementation of a new billing system, there was a delay in
the issuance of telephone bills a...
Operating Revenue
In R$ thousand
...
Highlights
2Q00 2Q99 1Q00 1H00 1H99
Total...
TELE CELULAR SUL PARTICIPAÇÕES S.A.
BALANCE SHEETS AS OF JUNE 30, 2000 AND MARCH 31, 2000
...
TELE CELULAR SUL PARTICIPAÇÕES S.A.
BALANCE SHEETS AS OF JUNE 30, 2000 AND MARCH 31, 2000
...
TELE CELULAR SUL PARTICIPAÇÕES S.A.
BALANCE SHEETS AS OF JUNE 30, 2000 AND MARCH 31, 2000
...
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Press Release 2 Q00 Tele Celular Sul En

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


Transcripts - Press Release 2 Q00 Tele Celular Sul En

  • 1. TELE CELULAR SUL PARTICIPAÇÕES S.A. Contacts TELE CELULAR SUL PARTICIPAÇÕES S.A. Ruggero Caterini Chief Financial Officer and Director of Investor Relations Joana Dark Fonseca Serafim Investor Relations (5541) 312-6862 jserafim@timsul.com.br Rafael J. Caron Bosio Investor Relations (5541) 312-6623 rbosio@timsul.com.br Website http://www.telecelularsul.com.br TELE CELULAR SUL PARTICIPAÇÕES S.A. ANNOUNCES ITS CONSOLIDATED RESULTS FOR THE SECOND QUARTER OF 2000 Curitiba, August 3, 2000 – Tele Celular Sul Participações S.A. (NYSE: TSU; BOVESPA: TCLS3 and TCLS4), 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, announced today its results for the second quarter of 2000. Highlights of the Second Quarter of 2000 Innovation During the second quarter of 2000, Tele Celular Sul launched the two-way Short Message Service. The Company also began offering TIMnet Banking, a system allowing access to bank data via celular telephone. Tele Celular Sul, together with Tele Nordeste Celular, created its own Internet portal, TIMNET.COM, in order to provide advanced, innovative and readily accessible services such as W-Vas (Wireless Value Added Services). In addition, CSD data circuits are being installed, allowing the transmission of data through the digital channel. Market Segmentation The segmentation strategy was enhanced with the development of new services for corporate customers, such as the Plano Empresarial (Corporate Plan), and the Right Planning program, which aims to encourage customer loyalty, by advising customers as to the plan better suited to their utilization profile. Quality of Services In line with the Company’s Capex program, R$100 million will be invested from June until the end of the year to broaden coverage and improve the quality of services. The digitalization process was accelerated and reached 95% of the Radio Base Stations (ERB) by the end of June 2000. Prices and Traffic At the end of the second quarter, Tele Celular Sul increased its prices, raising the rates of the Basic and Economic Service Plans. The TIM-TIM program was introduced to increase traffic by granting rebates on rates for calls on network made by customers. 1
  • 2. Key Figures In R$ thousand 2Q/00 2Q/99 1Q/00 Total Gross Revenue 221,031 205,538 252,971 Net Operating Revenue 152,950 127,133 161,279 Net Handset Sale Revenue 20,759 31,439 32,765 Total Net Revenue 173,709 158,572 194,044 EBITDA 45,451 57,571 61,059 EBITDA Margin 26% 36% 32% EBITDA Margin without handset sales 30% 45% 38% Depreciation 33,452 23,950 28,349 Net Profit (776) 15,139 11,842 Profit per 1,000 shares (R$) - 0.045 0.035 Market Share The second quarter of 2000 was marked by heightened competition. Despite the competitive environment, Tele Celular Sul maintained its leadership position in the market, retaining an estimated 83% market share as of the end of the second quarter. The total market penetration rate for the period is approximately 10 cell phones per 100 inhabitants. As of June 30, 2000, the Company had 1.2 million subscribers, of which 426,400 were prepaid service users. Operating Revenue The Company´s gross operating revenue for the second quarter was R$221.0 million, compared with R$252.9 million registered in the previous quarter. The decrease quarter- over-quarter is primarily due to seasonal effects related to vacationing during the months of January and February as well as to the Company’s policy of blocking customers that have delinquent accounts and the decrease in handsets sales. Regarding the decrease in handset sales, Tele Celular Sul contracted a company specialized in the sale and distribution of handsets as of May 2000. Therefore, this company is now in charge of all the logistics involved in the handset sale process. Since handset sales are not part of Tele Celular Sul’s core business, this will benefit the Company by eliminating the handset seller credit risk. 2
  • 3. Composition of the Gross Operating Revenue Composition of the Gross Operating Revenue 2nd Quarter/00 - R$ 221.0 million 2 nd Quarter/99- R$ 205.5 million Handsets Sales Handsets sales 89,6 17,6 36,2 Others 23,5 0,5 31,4 55,7 47,8 in 76,3 47,9 Airtime Operating Costs and Expenses The cost of services rendered for the second quarter of 2000 (excluding the cost of handset sales) was R$74.8 million, a 6% increase over the preceding quarter. Part of this increase resulted from higher maintenance costs for hardware, software and infrastructure associated with the accelerated digitalization and expansion of coverage. Depreciation expense for the second quarter was R$30.8 million, versus R$26.5 million in the preceding quarter. The cost of handset sales for the second quarter was R$23.2 million, representing a 42% reduction over the first quarter of the year. Composition of Cost of Services Rendered Composition of Costs of Services Rendered nd 2 Quarter/00 - R$ 75.0 million 2 nd Quarter/99 - R$ 53.6 million Payroll Third Party services Fistel Peyroll Third Party 3,0 4,3 Services Fistel 7,0 10,9 1,0 3,2 Depreciation and 30,9 Amortiization Depreciation 23,9 and Amortiion 12,5 14,5 10,7 Interconnection Leased Lines Leased 6,7 interconnecction Lines During the second quarter, subsidy levels decreased significantly, bringing the subscriber acquisition cost (SAC) down to R$132, a 15% reduction over the preceding quarter, which was R$156. Selling expenses, excluding doubtful accounts, remained stable despite the highly competitive environment. They amounted to R$26.6 million in the quarter, versus R$26.7 million for the preceding quarter. 3
  • 4. During the initial phase of implementation of a new billing system, there was a delay in the issuance of telephone bills and the temporary discontinuance of some practices in order to expedite billing. Those factors increased the default level to R$22.5 million for the period. In addition, a significant number of non-paying customers were blocked during the second quarter. Nonetheless, the implementation of strict credit and collection policies has already improved July revenues, indicating lower default levels for the coming quarters. General and administrative expenses totaled R$12.7 million in the second quarter, or R$1.7 million more than the first quarter, but 43% below the year-over-year levels. Financing Expenses Net financing expenses for the quarter totaled R$15.5 million, representing a R$1.7 million increase over the first quarter. Tele Celular Sul's interest-bearing indebtedness was R$307.9 million on June 30, 2000, representing 40% of shareholders' equity. EBITDA EBITDA for the second quarter was R$45.5 million and EBITDA margin was 26%, or 30% excluding the sale of handsets. Net Result A R$0.8 million net loss was recorded for the quarter and was attributed solely to the increase in the expenses due to doubtful accounts in the period. However, the accumulated net profit for the first half of the year was R$11.1 million, representing R$0.03 per lot of one thousand shares. Other Events On June 28, 2000, Tele Celular Sul paid interest on equity for fiscal year 1999, equivalent to R$0,0365 per lot of 1,000 common and preferred shares, net of income tax and adjusted by the Brazilian Reference Rate applicable to the period from December 31, 1999 to the date of actual payment. On June 30, 2000, a Special General Meeting approved the transfer of the goodwill premium paid at the time of the privatization to Tele Celular Sul's controlled companies Telepar Celular, Telesc Celular and CTMR Celular. The goodwill was allocated to Tele Celular Sul through the merger with 1A2A Participações S.A. in a preceding step. xxxxxxxxxxxxxxx 4
  • 5. Operating Revenue In R$ thousand 2Q00 2Q99 1Q00 1H00 1H99 Handset sales 23.493 36.217 38.347 61.840 55.523 Air Time 93.876 89.577 111.014 204.890 174.913 Subscription fees 47.880 47.760 47.603 95.483 92.240 Interconnection charges 1 55.679 31.444 55.596 111.275 59.620 Others 103 540 411 514 5.966 Gross Operating Income 221.031 205.538 252.971 474.002 388.262 Taxes and Other Deductions (47.322) (46.966) (58.927) (106.249) (84.168) Net Operating Income 173.709 158.572 194.044 367.753 304.094 Net Operating Income from Services 152.950 127.133 161.279 314.229 256.042 Net Operating Income from Sales 20.759 31.439 32.765 53.524 48.052 Note: (1) The amount relating to the 1Q/00 interconnection charges was reallocated in the statement, so that R$16.9 million were transferred to Air Time Charges. Operating Costs and Expenses In R$ thousand 2Q00 2Q99 1Q00 1H00 1H99 Cost of Services and Goods 98.058 87.249 110.506 208.564 162.863 Cost of Services 74.858 53.621 70.427 145.285 107.336 Cost of Goods and Others 23.200 33.628 40.079 63.279 55.527 Operating Expenses 91.425 51.730 82.096 173.521 116.376 Selling Expenses 49.147 22.342 44.444 93.591 41.644 General Administrative Expenses 12.712 21.076 10.964 23.676 35.950 Financing Expenses 21.000 8.765 19.774 40.774 37.382 Other Operating Expenses 8.566 (453) 6.914 15.480 1.400 Operating Costs and Expenses 189.483 138.979 192.602 382.085 279.239 Expenses with Doubtful Accounts – DCLD 22.546 9.385 17.685 40.231 19.410 xxxxxxxxxxxxxxxxxxxxxxxxxxx 5
  • 6. Highlights 2Q00 2Q99 1Q00 1H00 1H99 Total subscribers 1.205.343 770.873 1.121.531 1.205.343 770.873 Postpaid 778.992 706.965 763.742 778.992 706.965 Prepaid 426.351 63.908 357.789 426.351 63.908 Estimated population in the region (million) 14,7 14,3 14,7 14,7 14,3 Municipalities served 218 193 217 218 193 Penetration ( TSU ) 8% 5% 8% 8% 5% Market share 83% 94% 85% 83% 94% Marginal market share 73% 84% 76% ARPU TOTAL 1 R$44 R$60 R$50 R$47 R$62 ARPU – postpaid 1 R$57 R$61 R$59 ARPU – prepaid 1 R$19 R$22 R$20 MOU Total ( incoming) 75 94 81 77 96 MOU Total ( outgoing) 46 70 60 53 72 MOU - prepaid (outgoing) 16 19 17 MOU -prepaid (incoming) 71 79 75 Investment ( million ) R$7 R$98 R$51 R$57 R$106 Gross Additions 121.200 128.192 133.476 254.676 193.881 Disconnections 37.388 23.027 46.211 83.599 33.389 Churn 2 3% 3% 4% 7% 5% Points of sale (including own shops) 635 547 610 635 547 Own shops 14 15 16 14 15 Total Staff 1.225 927 1.197 1225 927 Full-time 1.146 537 1.103 1146 537 Contractors and Apprentices 79 39 94 79 390 Notes: (1) Average revenue per subscriber ( Net, excluding handset sale). (2) Calculated on the average subscriber base. 6
  • 7. TELE CELULAR SUL PARTICIPAÇÕES S.A. BALANCE SHEETS AS OF JUNE 30, 2000 AND MARCH 31, 2000 (Expressed in thousands of Brazilian reais) (Translation of the original in Portuguese) A S S E T S Parent Company . Consolidated . June 30, 2000 March 31, 2000 June 30, 2000 March 31, 2000 CURRENT ASSETS Cash and marketable securities 899 20 14,008 1,985 Accounts receivable from services - - 153,775 184,612 Accounts receivable from sales of products - - 40,227 30,748 Receivable from subsidiaries - - - - Allowance for doubtful accounts - - (41,868) (27,218) Inventories - - 19,567 24,776 Dividends receivable - 12,058 - - Recoverable and deferred taxes 3,206 2,363 21,458 22,451 Prepaid expenses - - 9,396 13,399 Other current assets 1,847 1,559 21,399 16,593 ---------- ---------- ---------- ---------- 5,952 16,000 237,962 267,346 ---------- ---------- ---------- ---------- LONG-TERM ASSETS Receivable from subsidiaries 135,171 134,431 - - Recoverable and deferred taxes - - 59,644 44,517 Other long-term assets 1,179 977 14,001 12,264 ---------- ---------- ---------- ---------- 136,350 135,408 73,645 56,781 ---------- ---------- ---------- ---------- PERMANENT ASSETS Investments 650,971 449,238 20 20 Property and equipment 742 64 782,363 814,284 Deferred assets - - 617,766 17,396 ---------- ---------- ------------ ------------ 651,713 449,302 1,400,149 831,700 ---------- ---------- ------------ ------------ Total assets 794,015 600,710 1,711,756 1,155,827 ====== ====== ======= ======= 7
  • 8. TELE CELULAR SUL PARTICIPAÇÕES S.A. BALANCE SHEETS AS OF JUNE 30, 2000 AND MARCH 31, 2000 (Expressed in thousands of Brazilian reais) LIABILITIES AND SHAREHOLDERS’ EQUITY Parent Company . Consolidated . June 30, 2000 March 31, 2000 June 30, 2000 March 31, 2000 CURRENT LIABILITIES Loans and financing - - 251,888 241,097 Suppliers 2,408 2,953 25,486 58,418 Taxes and contributions 75 705 - - Salaries and social charges 4,317 3,801 7,235 6,478 Dividends payable 4,788 15,844 - 18,961 Provision for contingencies - 462 662 1,173 Provision for losses on shareholders’ equity - - 42,543 - Payable to subsidiaries - - - - Direct and indirect taxes - - 24,747 25,386 Other current liabilities 1,350 1,187 19,349 26,112 ---------- ---------- ---------- ---------- 12,938 24,952 371,910 377,625 ---------- ---------- ---------- ---------- LONG-TERM LIABILITIES Loans and financing - - 56,073 55,224 Provisions 3,466 2,874 3,727 6,851 Provision related to non-tax deductable portion of goodwill - - 351,544 - Indirect taxes - - 24,232 14,705 Other long-term liabilities 75 75 75 75 ---------- ---------- ---------- ---------- 3,541 2,949 435,651 76,855 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- MINORITY INTEREST - - 126,659 128,538 ---------- ---------- ---------- ---------- SHAREHOLDERS’ EQUITY Capital Stock 175,772 175,872 175,772 175,872 Capital Reserves 205,603 - 205,603 - Legal reserve 16,744 16,744 16,744 16,744 Profit Reserves 126,655 126,655 126,655 126,655 Retained earnings 252,762 253,538 252,762 253,538 ---------- ---------- ---------- ---------- 777,536 572,809 777,536 572,809 --------- --------- ---------- ---------- Total liabilities and shareholders’ 794,015 600,710 1,711,756 1,155,827 equity 8
  • 9. TELE CELULAR SUL PARTICIPAÇÕES S.A. BALANCE SHEETS AS OF JUNE 30, 2000 AND MARCH 31, 2000 (Expressed in thousands of Brazilian reais) CONSOLIDATED STATEMENTS OF INCOME Parent Company Consolidated Six months Six months Six months Six months ended June 30, ended June 30, ended June 30, ended June 30, 2000 1999 2000 1999 Gross revenue - - 474,002 388,262 Deductions - - (106,249) (84,168) ---------------- ---------------- ---------------- ---------------- Net revenue - - 367,753 304,094 Cost of sales - - (208,564) (162,863) ---------------- ---------------- ---------------- ---------------- Gross profit - - 159,189 141,231 Operating income (expenses), net Selling expenses - - (93,591) (41,644) General and administrative (1,555) (1,087) (23,676) (35,950) Financial income (expenses) 10,342 25,390 (29,197) (18,539) Other operating income (expenses), net (2,204) 104 299 7,485 Income from the investments in subsidiaries 6,176 15,062 - - ---------------- ---------------- ---------------- ---------------- Operating profit (loss) 12,759 39,469 13,024 52,583 Non-operating expenses, net - - 31 (7,940) ---------------- ---------------- ---------------- ---------------- Income before taxes and profit sharing 12,759 39,469 13,055 44,643 Provision for income tax and social contribution (1,011) (8,273) (3,746) (24,095) Deferred income tax - - - 10,508 Profit sharing (682) - (1,112) (530) Minority interests - - 2,869 670 ---------------- ---------------- ---------------- ---------------- Net profit (loss) 11,066 31,196 11,066 31,196 ========= ========= ========= ========= Number of shares outstanding (in thousands) 334,399,027 334,399,027 334,399,027 334,399,027 ========= ========= ========= ========= Net profit (loss) per thousand shares 0.03 0.09 0.03 0.09 ========= ========= ========= =========

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