TIM(US:TIMB)2024-02-08 12:51Financial Data and Key Metrics Changes - In 2023, service revenues grew by 10.7% year-on-year, totaling more than BRL23 billion [12] - EBITDA grew more than 14% to reach BRL11.7 billion, with a margin expansion to almost 49% [12] - Net income rose to BRL2.7 billion, expanding more than 50% year-over-year [60] - Operating free cash flow grew more than 50% year-over-year, with a margin expanding to nearly 19% [16] Business Line Data and Key Metrics Changes - Blended ARPU reached close to BRL30, growing nearly 13% year-over-year [5] - Post-paid and prepaid ARPUs expanded in the mid-teen range in 2023 [5] - Mobile revenue increased by 7.6%, while broadband revenue grew by 9.5% [63] Market Data and Key Metrics Changes - The company has the largest 4G and 5G coverage in Brazil, covering all cities [4] - The mobile market in Brazil is described as healthier than ever, supporting a "more-for-more" strategy [12] Company Strategy and Development Direction - The company focuses on four pillars: mobile, B2B, broadband, and efficiency, integrating social and environmental considerations into its strategy [5] - The "more-for-more" strategy aims to enhance customer benefits while increasing ARPU [27] - The company is exploring opportunities in the B2B sector, with contracted revenues of EUR 300 million over the last 18 months [67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to grow service revenues above inflation, with a focus on maintaining a rational competitive environment [38] - The company plans to update its guidance to adjust to new market conditions, expecting service revenues to grow above inflation [34] - Management highlighted the importance of cost control and productivity discipline in achieving future growth [74] Other Important Information - The company was recognized as one of the most sustainable telco companies globally and ranked high in diversity and inclusion [14] - A Capital Market Day is scheduled for March 7th, where updated shareholder remuneration targets will be disclosed [19] Q&A Session All Questions and Answers Question: What are the sources of growth going forward in mobile revenues? - Management indicated that growth will continue to come from a mix of volume and ARPU, with a focus on the "more-for-more" strategy [65] Question: How do you see the pricing environment for 2024? - Management noted that competitive dynamics remain rational and they plan to maintain similar pricing strategies as in 2023 [38] Question: What are the expectations on decommissioning and 5G coverage? - Management expects to continue optimizing costs while increasing 5G coverage, balancing decommissioning with new site requirements [41][43] Question: Can you comment on the structure following the departure of the CTO? - Management confirmed that the CTO structure has been removed, with key executives reporting directly to the CEO, ensuring continuity in strategy [53] Question: What is the optimal leverage in the future? - Management did not provide a specific target but indicated that they aim to maintain a low leverage ratio while focusing on shareholder remuneration [118]