TELE CELULAR SUL PARTICIPAÇÕES S.A.
Contacts
TELE CELULAR SUL PARTICIPAÇÕES S.A.
Ruggero Caterini
Chief Financial Office...
Capitalization of Credits
On August 30, 2000, Telepar Celular's General Shareholders’
Meetin...
Net revenue from handset sales decreased 60%, reaching R$8.2 million. This
decrease was already expected, because Tele Cel...
Expenses related Provision for credits of doubtful accounts (Bad Debt) in the quarter
were R$13.1 million. An addit...
Additional Events
Market Segmentation
As of October 2000 the "Pronto! Replay", was launched. These prepaid services
gran...
6
Highlights
3Q00 3Q99 2Q00 YTD YTD
...
Highlights: Operating Companies
Telepar Telesc CTMR Celula...
TELE CELULAR SUL PARTICIPAÇÕES S.A.
BALANCE SHEETS AS OF SEPTEMBER 30, 2000 AND JUNE 30, ...
TELE CELULAR SUL PARTICIPAÇÕES S.A.
BALANCE SHEETS AS OF SEPTEMBER 30, 2000 AND JUNE 30, ...
TELE CELULAR SUL PARTICIPAÇÕES S.A.
BALANCE SHEETS AS OF SEPTEMBER 30, 2000 AND JUNE 30, 20...
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Press Release 3 Q00 Tele Celular Sul En

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


Transcripts - Press Release 3 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.timsul.com.br/tcf/ TELE CELULAR SUL PARTICIPAÇÕES S.A. ANNOUNCES ITS CONSOLIDATED RESULTS FOR THE THIRD QUARTER OF 2000 Curitiba, November 13, 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 third quarter of 2000. Highlights of the Third Quarter of 2000 Offering of Debentures On September 29th, Telepar Celular, a company controlled by Tele Celular Sul, filed a request with the Brazilian SEC for the offering of debentures, which is being analyzed by the Commission. Tele Celular Sul is the guarantor of the operation. The amount of this issuance is R$200 million with a 3-year term, yielding interest of 102.7% which is the average rate of one-day Inter-financial Deposits, called the DI Rate. Ratings Standard & Poors granted Telepar Celular a "brBBB+" rating. The debentures, yet to be issued by the company, received a "brBBB" rating. Such classifications reflect the growth potential of the cellular market in Brazil; the Company’s leadership position, and the TSU’s profitability and adjusted cash flow's protection. Atlantic Rating granted a rating of "A - " for the issuance of debentures for the good quality of the paper that is being issued. 1
  • 2. Capitalization of Credits On August 30, 2000, Telepar Celular's General Shareholders’ Meeting approved the capitalization of credits totaling R$ 119.0 million held by Tele Celular Sul. Additionally, on September 30th, 2000, when the term to exercise of preemptive right expired, Tele Celular Sul's total participation in Telepar Celular's capital stock increased from 67.3% to 73.5%. Market Segmentation During the third quarter of 2000, Tele Celular Sul launched a new plan called TIM family. This plan is composed of at least two or a maximum of four people and allows the group to a total of 200 minutes at reduced rates. Key Figures In Mil R$ 3Q/00 3Q/99 2Q/00 Total Gross Revenue 217,821 206,344 221,031 Net Operating Revenue 163,615 125,734 152,950 Net Handset Sale Revenue 8,214 39,544 20,759 Total Net Revenue 171,829 165,278 173,709 EBITDA 52,076 23,347 45,451 EBITDA Margin 30% 14% 26% EBITDA Margin without handset sales 32% 18% 30% Depreciation 38,450 29,529 33,452 Net Profit (3,944) (6,926) (776) Market Share Tele Celular Sul's estimated Market Share was 80% in the third quarter of 2000. The penetration rate was 9% with total penetration in the concession area estimated at 11%, demonstrating the growth potential compared to the Brazilian average, which is 12.2%. As of September 30th, 2000, the Company had 1,284,520 customers, with 501,270 representing prepaid service users. Operating Revenue The Company's gross operating revenue in the third quarter was R$217.8 million, or 6% higher than the third quarter of 1999. For the third quarter, net service revenue was R$163.6 million, representing an increase of 7% over the preceding quarter and 30% compared to the 3rd quarter of 1999. 2
  • 3. Net revenue from handset sales decreased 60%, reaching R$8.2 million. This decrease was already expected, because Tele Celular Sul is currently selling handsets through its stores. In addition, marketing and distribution of handsets among accredited dealers are done through a specialized company. Operating Costs The costs of services registered for the third quarter of 2000 (excluding the cost of handset sales) was R$83.2 million, versus the R$ 62 million reported in the third quarter of 1999. 3Q00 3Q99 2Q00 YTD Sept/00 YTD Sept/99 Costs of services and handsets sales 106,716 119,833 98,058 315,280 282,696 Costs of Services 83,253 62,561 74,858 228,368 169,737 Costs of handset sales and others 23,463 57,272 23,200 86,912 112,959 During this period, the costs related to maintenance of hardware, software, and infrastructure increased due to the acceleration of digitization and expansion of the coverage area. By the end of the quarter, digitization had reached 99.4% of the radio base stations and 80% of the customers. Simultaneously, the coverage area had reached 78% of the population in the concession area. Depreciation for the third quarter was R$38.5 million, compared to R$ 29.5 million in the same period in 1999. The cost of handset sales for the third quarter was R$23.5 million, a 60% decrease compared with R$57.2 million recorded for the third quarter of 1999. This decrease is basically due to the reduction in subsidies (currently directed towards customer retention), and to the outsourcing of marketing activities and distribution of handsets to accredited dealers. In addition, R$ 2.3 million is being added to the costs of handset sales as extraordinary expenses, related to credits of the Tax on Circulation of Goods (ICMS) not accounted for during the current fiscal year. The recovery of such Taxes are being contested in court. Operating Expenses 3Q00 3Q99 2Q00 YTD Sept 00 YTD Sept 99 Operating Expenses 99,912 67,744 91,425 273,433 184,120 Selling Expenses 45,077 40,615 49,147 138,668 82,259 General Administrative Expenses 12,926 7,669 12,712 36,602 43,619 Financing Expenses 22,795 11,860 21,000 63,569 49,242 Other Operating Expenses 19,114 7,600 8,566 34,594 9,000 Expenses with Doubtful Accounts 17,047 16,892 22,546 57,278 36,302 – PCLD Commercial expenses, excluding expenses with provision for credits of Doubtful accounts, were R$28.0 million, compared to R$26.6 million for the previous quarter and R$23.7 million for the third quarter of 1999. For the third quarter, subscriber acquisition cost (SAC) was R$127, compared to the R$132 recorded in the previous quarter. 3
  • 4. Expenses related Provision for credits of doubtful accounts (Bad Debt) in the quarter were R$13.1 million. An additional R$3.9 million was considered, as an extraordinary expense not incurred during the period. During the final stages of the implementation of the new billing system, the Company reconciled doubtful accounts with the fixed line operators. The accounts that were past due prior to the implementation of the new billing system were written-off during the third quarter of 2000. As a result of this process, the above-mentioned R$3.9 million is being added to doubtful accounts for the quarter. The purpose of this procedure was to clean up the database and, thereby, consolidate the implementation of the new billing system. General and administrative expenses for the third quarter were R$12.9 million, maintaining the same level recorded in the previous quarter (R$12.7 million). Other Operating Expenses Other Operating Expenses were R$19.1 million, compared to R$7.6 million in the third quarter of 1999. For the third quarter, R$14.9 million was recorded for the amortization of the goodwill in the operating companies, which was taken into account as of June 2000. The Reversal of provisions for the non tax-deductible portion of goodwill was included in “other operating income”. Financial Expense During this quarter, Financial Expenses were R$22.7 million, compared to R$21.0 million for the previous quarter and R$7.6 million for the third quarter of 1999. Tele Celular Sul's indebtedness at the end of the quarter was R$291.9 million, compared to R$138.6 million recorded at the end of the third quarter of 1999. EBITDA EBITDA for the third quarter was R$52.1 million, and EBITDA margin was 30% - or 32%, excluding the sales of handset. Extraordinary expenses not incurred during the period totaled R$7.3 million and were not included in the calculation of EBITDA, which is explained in the sections "cost of handset sales" and "expenses with provision for doubtful accounts". Net Result A R$3.9 million net loss was recorded for the quarter, compared to the R$6.9 million reported in the third quarter of 1999. The result for the quarter was impacted by extraordinary expenses not incurred during the period, which totaled R$7.3 million (R$3.9 million of Bad Debt, R$2.3 of Credits related to the ICMS, and R$1.1 attributed to expenses with the RuralCel Service 4
  • 5. Additional Events Market Segmentation As of October 2000 the "Pronto! Replay", was launched. These prepaid services grant telephone bonus credits ranging from 5% to 50% based on the amount spent. Increase in rates Anatel authorized the readjustment of the Mobile Network Usage Rate (TU-M) from R$0.2078 to R$0.2552, net of taxes and welfare contributions. The new amount went into effect as of November 1, 2000. xxxxxxxxxxxxxxx This press release contains forward-looking statements. The Company and its representatives may also make forward-looking statemens in oral statements. Statements that are not statements of histrocial fact, including statements about the beliefs and expectations of the Company’s management are forward-looking statements. The words “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “intend,” “plans,” “predicts,” projects,” “targets,” and similar words are intended to indentify these statements which necessarily involve known and unknown risks and uncertanities. 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 speack 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. 5
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  • 7. Highlights 3Q00 3Q99 2Q00 YTD YTD Sept/00 Sept/99 Total subscribers 1.284.520 891.144 1.205.343 1.284.520 891.144 Postpaid 783.250 727.175 778.992 783.250 727.175 Prepaid 501.270 163.969 426.351 501.270 163.969 Estimated population in the region (million) 14,7 14,6 14,7 14,7 14,6 Municipalities served 218 202 218 218 202 Penetration ( TSU ) 9% 6% 8% 9% 6% Market share 80% 89% 83% 80% 89% Marginal market share 53% 72% 73% 63% 76% ARPU TOTAL 1 R$44 R$51 R$44 R$46 R$57 ARPU – postpaid 1 R$57 R$53 R$57 R$58 R$61 ARPU – prepaid 1 R$21 R$26 R$19 R$21 R$26 MOU postpaid ( incoming) 79 87 77 80 91 MOU postpaid ( outgoing) 68 59 62 71 66 MOU - prepaid (outgoing) 17 21 16 17 22 MOU -prepaid (incoming) 72 - 71 74 - Investment ( million ) R$59 R$62 R$7 R$116 R$169 Gross Additions 123.765 146.027 121.200 378.441 339.908 Disconnections 44.588 26.756 37.388 128.187 60.144 Churn 2 4% 3% 3% 11% 8% Points of sale (including own shops) 672 549 635 672 549 Own shops 14 16 14 14 16 Total Staff 1.244 1.112 1.225 1.244 1112 Full-time 1.163 943 1.146 1.163 943 Contractors and Apprentices 81 169 79 81 169 Notes: (1) Average revenue per subscriber ( Net, excluding handset sale). (2) Calculated on the average subscriber base. Operating Revenue 3Q00 3Q99 2Q00 YTD Sept 00 YTD Sept 99 Handset sales 9.591 45.819 23.493 71.431 101.342 Air Time 99.454 83.007 93.876 304.344 257.920 Subscription fees 43.596 43.465 47.880 139.079 135.705 Interconnection charges 64.352 34.395 55.679 175.627 94.015 Others 828 (342) 103 1.342 5.624 Gross Operating Income 217.821 206.344 221.031 691.823 594.606 Taxes and Other Deductions (45.992) (41.066) (47.322) (152.241) (125.234) Net Operating Income 171.829 165.278 173.709 539.582 469.372 Net Operating Income from Services 163.615 125.734 152.950 477.844 381.776 Net Operating Income from Sales 8.214 39.544 20.759 61.738 87.596 7
  • 8. Highlights: Operating Companies Telepar Telesc CTMR Celular Celular Celular Operational Data 682.236 569.661 32.623 Total subscribers 423.961 333.626 25.663 Postpaid 258.275 236.035 6.960 Prepaid 9.2 5.2 0.3 Estimated population in the region (million) Investments 117,7 40,6 2,9 507 282 16 Total Staff Financing Data (R$ million) YTD Sept 00 Gross Operating Revenue 379.816 310.323 18.423 Net Operating Revenue 295.487 243.623 14.721 Costs of Sales and Goods 188.711 130.355 10.463 Selling Expenses 76.976 57.497 4.195 General and Administrative Expenses 18.560 14.770 956 xxxxxxxxxxxxxxxxxx 8
  • 9. TELE CELULAR SUL PARTICIPAÇÕES S.A. BALANCE SHEETS AS OF SEPTEMBER 30, 2000 AND JUNE 30, 2000 (Expressed in thousands of Brazilian reais) (Translation of the original in Portuguese) A S S E T S Parent Company. Consolidated. September, June 30, September, June 30, 2000 2000 2000 2000 CURRENT ASSETS Cash and marketable securities 4,734 899 18,476 14,008 Accounts receivable from services - - 134,528 Accounts receivable from sales of products - - 19,102 40,227 Receivable from subsidiaries - - - Allowance for doubtful accounts - - (23,433) (41,868) Inventories - - 16,405 19,567 Dividends receivable - - - - Deferred and recoverable taxes 3,004 3,206 27,609 21,458 Prepaid expenses 18 31 5,490 9,396 Other current assets 1,759 1,816 22,457 21,399 ---------- ---------- ---------- ---------- 9,515 5,952 220,634 237,962 ---------- ---------- ---------- ---------- LONG-TERM ASSETS Receivable from subsidiaries 20,243 135,171 - Recoverable and deferred taxes - - 67,112 59,644 Other long-term assets 725 1,179 13,947 14,001 ---------- ---------- ---------- ---------- 20,968 136,350 81,059 73,645 ---------- ---------- ---------- ---------- PERMANENT ASSETS Investments 759,234 650,971 16,689 20 Property plant and equipment 112 742 793,358 782,363 Deferred assets - - 610,607 617,766 ---------- ---------- ---------- ------------ 759,346 651,713 1,420,654 1,400,149 ---------- ---------- ---------- ------------ Total assets 789,829 794,015 1,722,347 1,711,756 ====== ====== ====== ======= 9
  • 10. TELE CELULAR SUL PARTICIPAÇÕES S.A. BALANCE SHEETS AS OF SEPTEMBER 30, 2000 AND JUNE 30, 2000 (Expressed in thousands of Brazilian reais) LIABILITIES AND SHAREHOLDERS’ EQUITY Parent Company Consolidated September, June 30, September, June 30, 2000 2000 2000 2000 CURRENT LIABILITIES Loans and financing - - 239,548 251,888 Suppliers 1,032 2,408 50,193 25,486 Taxes and contributions - 75 - - Salaries and social charges 4,691 4,317 - 7,235 Dividends payable 4,914 4,788 8,684 8,738 Provision for contingencies - - - 662 Provision for losses on shareholders’ equity - 49,053 42,543 Payable to related companies 2,314 - - Direct and indirect taxes - - 24,578 24,747 Other current liabilities 1,080 1,350 12,427 10,611 ---------- ---------- ---------- ---------- 14,031 12,938 384,483 371,910 ---------- ---------- ---------- ---------- LONG-TERM LIABILITIES Loans and financing - - 52,378 56,073 Provisions 2,131 3,466 3,194 3,727 Provision related to non-tax deductable portion of goodwill - - 335,192 351,544 Indirect taxes - - 28,950 24,232 Other long-term liabilities 75 75 75 75 ---------- ---------- ---------- ---------- 2,206 3,541 419,789 435,651 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- MINORITY INTEREST - - 144,483 126,659 ---------- ---------- ---------- ---------- SHAREHOLDERS’ EQUITY Capital Stock 175,772 175,772 175,772 175,772 Capital Reserves 205,603 205,603 205,603 205,603 Legal reserve 16,744 16,744 16,744 16,744 Profit Reserves 126,655 126,655 126,655 126,655 Retained earnings 248,818 252,762 248,818 252,762 ---------- ---------- ---------- ---------- 773,592 777,536 773,592 777,536 ---------- --------- ---------- ---------- Total liabilities and shareholders’ equity 789,829 794,015 1,722,347 1,711,756 ====== ====== ====== ====== 10
  • 11. TELE CELULAR SUL PARTICIPAÇÕES S.A. BALANCE SHEETS AS OF SEPTEMBER 30, 2000 AND JUNE 30, 2000 (Expressed in thousands of Brazilian reais) INCOME STATEMENT Parent Company Consolidated Nine-month Nine-month Nine-month Nine-month period ended period ended period ended period ended September 30, September 30, September 30, September 30, 2000 1999 2000 1999 Gross revenue 691,823 594,606 Deductions (152,241) (125,234) ---------------- ---------------- ---------------- ---------------- Net revenue 539,582 469,372 Cost of sales (315,280) (282,696) ---------------- ---------------- ---------------- ---------------- Gross profit 224,302 186,676 Operating income (expenses) Selling expenses (138,668) (82,259) General and administrative (2,316) (3,665) (36,602) (43,619) Financial income (expenses) 14,880 33,560 (44,724) (28,818) Other operating income (expenses), net (2,077) 86 (5,509) 4,142 Income from the investments in subsidiaries (2,001) 4,618 ---------------- ---------------- ---------------- ---------------- Operating profit (loss) 8,486 34,599 (1,201) 36,122 Non-operating expenses, net 2,130 2,154 (12,244) ---------------- ---------------- ---------------- ---------------- Income before taxes and profit sharing 10,616 34,599 953 23,878 Provision for income tax and social contribution (2,437) (10,329) 3,536 (30,999) Deferred income tax 24,751 Profit sharing (1,057) (1,641) (1,036) Minority interests 4,274 7,676 ---------------- ---------------- ---------------- ---------------- Net profit (loss) 7,122 24,270 7,122 24,270 ========= ========= ========= ========= Number of shares outstanding (in thousands) 334,399 334,399 334,399 334,399 ========= ========= ========= ========= Net profit (loss) per thousand shares 0.02 0.07 0.02 0.07 ========= ========= ========= ========= 11

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