11/13/07


Vivo leads market share and revenue in the Q307

 

 

Vivo was the only operator to receive in the third quarter of 2007 (Q307) a medal for leading on 2 of 7 indicators in which Teleco follows the performance of mobile operators in Brazil. In addition to maintain leadership in market share, Vivo regained leadership in net revenue which was lost to Tim in the Q207.

 

Vivo would also acquire a medal of quality if Telemig was joined to its operations.

 

In the Q307 there was a balance between the other operators. For the first time in the year each of them had a leadership medal.

 

Leader in
Indicator
Leader
Q307
Cell Phones
Market Share
Vivo
Vivo
Vivo
Growth
Net Adds
Tim
Claro
Claro
Revenue
Net Revenue
Vivo
Tim
Vivo
Revenue per Client
ARPU
Tim
Tim
BrT
Profit
EBITDA margin
Telemig/
Amaz
Telemig/
Amaz
Oi
Coverage
Population attended
Tim
Tim
Tim
Quality
Anatel's goals
Telemig/
Amaz
Telemig/
Amaz e Oi
Telemig/
Amaz

Note: CTBC and Sercomtel weren't included.

 

Tim had won 3 gold medals in the first 2 quarters of the year kept leadership in coverage in the Q307. Claro kept leadership in growth and Brasil Telecom made the best ARPU of the quarter. Oi led in profitability and Telemig / Amazon in quality.

 

It's following below an analyse of these results.

 

Market Share: Vivo maintains leadership

 

Vivo continues being the largest mobile operator in Brazil with 31.3 million cell phones and market share of 27.78%. It is the leader in market share in 2 Regions, 11 units of the Federation (UF) and 26 of the 67 local areas (DDD). (More details)

 

Q307
Market
Share
Cell Phones
(thousands)
Leader in Market Share
Region
UF
DDD
Vivo
27.78%
31,320
II and III
11
26
Tim
25.87%
29,160
-
8
19
Claro
24.82%
27,981
-
3
8
Oi
13.21%
14,900
I
4
10
Telemig/Amaz.
4.37%
4,927
-
1
4
BrT
3.57%
4,024
-
-
-

 

The main change in the Q307 was the lost of Telemig's leadership in Minas Gerais to Tim. Oi leads in Region I again.

 

With the joint venture Telemig/Amazônia, Vivo in the Q307 would:

  • have 36,247 thousand cell phones and market share of 32.15%, increasing the difference between Tim and Claro.
  • Occupy the 3rd position in market share in Region I, exceeding Claro.
  • Lead in 12 Units of Federation (UF) and in 31 of the 67 local areas (DDD).

The joint venture wouldn't be enough to Vivo exceed Claro in growth.

 

 

Growth: Claro leads and Oi surprised

 

Claro kept net adds leadership in the quarter and in the accumulated of the year, reducing its difference of Tim to 1.2 million cell phones.

 

 

 

Oi was the highlight of the quarter. After losing leadership in Region I in Jun/07 Oi was the operator that most grew in Jul/07, reversing a trend of low growth that is extended by almost 1 year. (more details).

 

Oi's growth is associated to the success of the promotion "Ligador" to pre-paid cell phones. In this promotion, making a monthly recharge of R$ 10 the costumer gets a monthly bonus of R$ 100 for calls Oi to Oi or Oi to fixed. The states Ceará and Pernanbuco were responsible by 42% of Oi's net adds.

 

Tim loses leadership in Revenue and ARPU

 

Vivo has taken over net revenue leadership in the Q307 with R$ 3,248 thousands against R$3,163 thousands of Tim mainly by the increase in the revenue of subscribers and usage.

 

 

R$ Thousands
Q107
Q207
Q307
Revenue Share
Vivo
2,851
3,021
3,249
29.7%
Tim
2,843
3,060
3,163
29.0%
Claro
2,155
2,431
2,538
23.2%
Oi Celular
1,000
1,028
1,063
9.7%
Telemig/Amaz
432
461
463
4.2%
BrT
385
429
449
4.1%

 

Tim leads at the front of Vivo in services net revenue with $ 2,878 thousands, against $ 2,846 thousands in Vivo. The long distance (41) is part of the Tim's revenue, which also only occurs with Oi.

Brasil Telecom (BrT) assumed leadership in monthly average revenue per customer (ARPU). This result was obtained by the growth in ARPU between post-paid customers which was $ 49.8 in Q207 to $ 57.7 in Q307.

 

ARPU R$
Q107
Q207
Q307
BrT
33.4
33.8
34.9
TIM
34.4
34.6
34.0
Vivo
30.0
29.9
30.8
ARPU Brazil
29.3
29.4
29.6
Telemig
27.6
29.2
29.1
Amaz Cel
28.4
28.9
28.7
Claro
27.0
27.0
27.0
Oi
21.6
21.5
22.3

 

 

Profit

 

The Oi Celular was the leader in profitability in Q307, with EBITDA and EBIT margins above the rest. Oi, Telemig / Amaz. and Vivo had great profit in the quarter.

 

Q307

EBITDA

Margin

EBIT
Profit
(R$ Millions)
Oi
33,2%
15,2%
92
Telemig/Amaz
30,0%
13,4%
30
Claro
25,0%
0,2%
ND
TIM
17,3%
-0,7%
-122
Vivo
25,7%
7,5%
4
BrT GSM
7,6%
-13,8%
-30

 

Oi's EBITDA margin rose from 19.3% in Q107 to 25.9% in the Q207 and 33.2% in Q307. Oi's EBITDA margin accumulated in the first 9 months of 2007 was 26% against 13.6%. Contributed to improving the Oi's profitability decrease with the sale of devices and marketing.

 

Coverage and Quality

 

Tim is the only operator present in all States, is leader in population and cities attended.

 

Operator
Population
Cities
Tim
86%
45%
Claro
78%
42%
Vivo
67%
42%
Oi
39%
15%
Brasil Telecom
21%
14%
Telemig/Amaz
15%
10%

 

With Telemig's joint venture Vivo would have coverage in Minas Gerais, only missing the operation in the Northeast states (area 8) to reach national coverage. Vivo would assume leadershio in covered cities(48%), but would continue 3rd in population attended (76%).

 

Telemig/Amazônia Celular was leader in attendance quality goals in the Q307.

 

Attended Goals
Q107
Q207
Q307
Telemig/Amaz
98.0%
100%
100%
Vivo
91.0%
97.2%
99.2%
Claro
92.3%
95.1%
98.1%
Brasil
94.3%
96.5%
97.1%
BrT GSM
96.0%
94.4%
96.0%
Tim
97.9%
95.9%
94.9%
Oi
79.5%
100%
84.8%

 

Telemig / Amazon cellular attended 100% of the quality goals in Q307. Oi which had also achieved 100% of the goals in the previous quarter, decreased mainly because of missed goals in aug/07. (more details).

 

You could ask:

  • Who is gonna be cell phones leaders in Brazil in 2007?
  • Will Tim recover revenue leadership?
  • Will Claro exceed Tim in market share?
  • Will Oi maintain leadership in profit?

 

Comment!

 

To send us a commentary, click on: teleco@teleco.com.br

 

Please let us know if you authorize the publication of your commentary.

 

Commentaries

 

 

 

Workshop
(in portuguese)
Cellular Market Update

TELECO CONSULTANCY

Reports

Imagem cortesia FreeDigitalPhotos.net

Telecom, Cellular and Capex

Workshops

Market Update

Latin America

Regulation in Brazil

Consultancy

Studies and Databases

More Products

EVENTS

More Events

REPORTS

Huawei Whitepaper

Mavam




 

 

 

 

 

Print this Page

Add to favorites Communicate errors