TIM(TIMB)2023-02-10 15:36Financial Data and Key Metrics Changes - The company's top line grew close to 20% year-over-year, with EBITDA increasing more than 17% compared to 2021, leading to a margin exceeding 47% [7][19] - Operating free cash flow rose more than 26% yearly, with a free cash flow margin expanding to 25.5% [8][22] - Net debt-to-EBITDA ratio reached 1.4x, below the company's guidance for this metric [24][79] Business Line Data and Key Metrics Changes - Fixed services revenue grew around 11% versus 2021, with a client base expansion in the mid-single digits [13] - Mobile services revenue expanded significantly, with postpaid revenues up more than 19% year-over-year and prepaid revenues increasing over 21% [91][93] - The company achieved a robust FTTH ARPU level of close to BRL 98 despite competitive pressure [13] Market Data and Key Metrics Changes - The company became the operator with the broadest mobile coverage in Brazil, achieving 100% coverage in all municipalities [89][105] - The competitive environment in the mobile sector has remained rational, with price adjustments benefiting top line growth for prepaid services [36][63] Company Strategy and Development Direction - The company aims to transform into the best mobile operator in Brazil, focusing on efficiency and synergy to improve revenues, OpEx, CapEx, and leases [27][28] - A new partnership in the health sector was announced to address the needs of the underserved population, leveraging telecom services to enhance customer access [99][100] - The company is committed to an integrated ESG agenda, reflected in improved sustainability rankings and recognition for diversity and inclusion policies [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving updated guidance for 2023, anticipating significant expansion in free cash flow margin and improvements in EBITDA margin [28][84] - The company expects to see improvements in operational metrics as the integration of Oi assets progresses and the cleanup of the customer base continues [94][96] Other Important Information - The company has fulfilled its promise of BRL 2 billion in shareholder remuneration, with BRL 1.4 billion already paid [22][23] - The operational challenges faced in 2022, such as high inflation and integration costs, are expected to dissipate in 2023 [18][20] Q&A Session Summary Question: Can you comment on the competitive environment in mobile? - Management noted that the market has been relatively rational, with recent price adjustments benefiting prepaid top line growth and plans for future adjustments in postpaid pricing [36][63] Question: What are the expected impacts of the power decommissioning in 2023? - The decommissioning plan involves dismantling over 3,000 towers in 2023, with financial savings expected to ramp up over time, becoming noticeable in lease payments [37][40] Question: What is the outlook for the effective tax rate in 2023? - The effective tax rate is expected to remain similar to 2022, driven by existing fiscal benefits and no anticipated changes in regulation [44][48] Question: Can you elaborate on the fiber business rollout strategy? - The company is working with partners to expand fiber services, focusing on areas where they have strong brand recognition and commercial capabilities [58][59] Question: How is the integration of Oi assets progressing? - The integration is on track, with significant milestones achieved, including the completion of prepaid transitions and ongoing postpaid migrations [103][104] Question: What is the status of bad debt performance? - Bad debt as a percentage of revenues has decreased, with improvements in collection curves indicating better performance over time [75][76]