TIM(TIMB)2023-11-07 11:03Financial Performance - TIM S.A. reported a net revenue of R$6,055,319 thousand for Q3 2023, an increase of 19.5% compared to R$5,067,516 thousand in Q3 2022[17]. - The gross income for the quarter was R$3,216,486 thousand, reflecting a gross margin of approximately 53.1%[17]. - The company achieved a net profit of R$716,005 thousand for Q3 2023, up 60.0% from R$447,664 thousand in Q3 2022[17]. - Consolidated net revenue for Q3 2023 reached R$6,055,319 thousand, a 7.9% increase from R$5,611,160 thousand in Q3 2022[19]. - Gross income for Q3 2023 was R$3,216,486 thousand, up 14.8% compared to R$2,802,180 thousand in Q3 2022[19]. - Net profit for the period in Q3 2023 was R$716,005 thousand, representing a 60.0% increase from R$447,664 thousand in Q3 2022[21]. - Basic and diluted earnings per share for Q3 2023 were R$0.30, compared to R$0.16 in Q3 2022, reflecting an 87.5% increase[19]. - Total comprehensive income for the period in Q3 2023 was R$716,005 thousand, consistent with the net profit for the same period[23]. - The company reported a profit before income tax and social contribution of R$812,556 thousand in Q3 2023, compared to R$359,876 thousand in Q3 2022, marking a 126.5% increase[19]. - The company reported a net income of R$724 million in Q3 2023, a 53.0% increase compared to R$473 million in Q3 2022[68]. Assets and Liabilities - Total assets as of September 30, 2023, amounted to R$55,972,967 thousand, an increase from R$52,925,205 thousand at the end of 2022[13]. - Current assets increased to R$10,836,815 thousand from R$9,828,112 thousand, with cash and cash equivalents rising to R$3,608,812 thousand[13]. - Total liabilities increased to R$30,398,909 thousand from R$27,527,840 thousand, with current liabilities rising to R$13,718,928 thousand[15]. - The company’s equity increased to R$25,574,058 thousand as of September 30, 2023, compared to R$25,397,365 thousand at the end of 2022[15]. - The Company’s current liabilities exceeded total current assets by R$ 2,882,113, attributed to the acquisition of Cozani and 5G license obligations[174]. Cash Flow and Financial Management - Operating cash flow for the consolidated entity was R$7,799,849 thousand in the nine-month period ended September 30, 2023, compared to R$5,724,645 thousand in the same period of 2022[29]. - The total cash generated by operations for the nine-month period ended September 30, 2023, was R$7,952,746 thousand, up from R$5,007,997 thousand in the same period of 2022[29]. - Operating Free Cash Flow decreased by 10.2% YoY to R$1,455 million in Q3 2023[86]. - Cash generation, excluding dividend payments, increased approximately 76% YoY, with a 20% growth after dividend payments[86]. - The Cash and Securities balance reached R$4,446 million at the end of Q3 2023, an increase of R$743 million YoY, driven by a 17.0% YoY rise in normalized EBITDA - Capex[95]. Customer Metrics - The total mobile ARPU reached R$30.2 in Q3 2023, marking a 21.1% increase year-over-year, with postpaid ARPU at R$52.9 (+24.7% YoY) and prepaid ARPU at R$15.0 (+17.1% YoY)[37]. - TIM's mobile customer base decreased by 11.0% year-over-year to 61,254,000, with prepaid customers down by 12.9% and postpaid customers down by 8.4%[38]. - The company reported a 34.6% year-over-year increase in its FTTH customer base, reaching nearly 10.4 million homes passed[37]. - The 5G user base surged by 336.4% YoY, reaching 3,778 thousand users, while the 4G user base decreased by 8.6% YoY[97]. - TIM UltraFibra's customer base grew by 11.6% YoY to 791 thousand lines, with FTTH customers increasing by 34.6% YoY[104]. Investments and Acquisitions - TIM S.A. completed the acquisition of Oi's mobile assets for an adjusted final price of R$6.68 billion, resolving arbitration related to the post-closing adjustment[39]. - The total consideration recorded for the acquisition of Cozani is R$ 7,211.6 million, with identifiable net assets at fair value amounting to R$ 4,575.2 million[151][160]. - The acquisition resulted in goodwill of R$ 2,636.4 million, reflecting expected future economic benefits from synergies[160]. - TIM paid R$ 250.7 million for service provision during the transition phase post-acquisition, recorded under prepaid expenses[155]. Operational Efficiency - Operating costs and expenses increased by 4.5% year-over-year to R$3,045 million in Q3 2023, growing below inflation[59]. - Normalized EBITDA reached R$3,011 million in Q3 2023, reflecting an 11.6% year-over-year growth, supported by strong service revenue performance and effective cost control[69]. - Normalized EBITDA margin was maintained at 49.7% in Q3 2023, an increase of 1.7 percentage points compared to Q3 2022[69]. - General and Administrative Expenses fell by 3.3% year-over-year in Q3 2023, primarily due to reduced spending on specialized professional services[64]. Strategic Initiatives - TIM S.A. plans to continue expanding its market presence and investing in new technologies to enhance service offerings[17]. - The company aims to have 100 renewable energy plants operational by the end of 2023, with 94 currently in operation[125]. - The partnership with the Cartão de Todos group aims to provide health services, with over 55,000 customers downloading the Tutti Saúde app[112]. - TIM's commercial partnership with Descomplica has registered over 300,000 customers on its education platform, offering various educational products[111]. Regulatory and Compliance - The Company adheres to Brazilian accounting practices and IFRS standards in its financial reporting[171]. - New accounting standards and amendments effective for the year ended September 30, 2023, include updates to CPC 37, CPC 48, and others[198]. - The merger was approved by the Board of Directors after obtaining necessary consents from regulatory bodies, including ANATEL[161].