10/05/08


Vivo is leader in 4 of the 7 main cellular indicators in 1Q08

 

Note: Vivo includes Telemig and Oi includes Amazônia.

 

Teleco started in 2007 (more details) following the performance of the cellular operators in Brazil measured by 7 indicators presented in the following table with their leaders in the 1st quarter of 2008 (1Q08).

 

Leader in
Indicator
Leader in the 1Q08
Cellulars
Market Share
Vivo
Coverage
Population attended
TIM
Growth
Net Adds
Oi
Revenue p/ Client
ARPU
BrT
Revenue
Net Revenue
Vivo
Profit
EBITDA Margin
Vivo
Quality
Anatel Goals
Vivo

Note: CTBC and Sercomtel aren't included. Vivo includes Telemig and Oi includes Amazônia.

 

With the joint venture of Telemig/Vivo and Amazônia/Oi, these indicators started to be avaluated for the 5 main cellular operators in Brazil: Vivo, Tim, Claro, Oi and Brasil Telecom (BrT).

 

Vivo, which in 2007 was leader in market share and revenue (more details), in the 1Q08 reached the leadership on 4 of the 7 indicators. Tim kept the leadership in coverage and BrT in ARPU. Claro, lost the leadership in growth to Oi.

 

Following below a detailed analysis of these results.

 

Market Share: Vivo expands leadership

 

Vivo, with the acquisition of Telemig, expanded its leadership in market share from 27.3% (without Telemig) to 30.4% in the 1Q08.

 

 
Market
Share
Cellulars
(thousands)
Leader in Market Share 1Q08
Region
State*
DDD
1Q08
1Q07
1Q08
1Q07
Vivo
30.4%
31.8%
38,309
32,526
II and III
12
31
Tim
25.9%
25.8%
32,533
26,321
-
5
17
Claro
24.8%
24.1%
31,182
24,608
-
3
8
Oi
14.9%
14.3%
17,332
14,614
I
7
11
BrT
3.6%
3.6%
4,578
3,636
-
-
-

Nota: Vivo includes Telemig and Oi includes Amazônia in the 1Q08 and in the 1Q07.* State Units

 

Vivo is the biggest cellular operator of Brazil with 38.3 million cellulars. It's leader in market share in 2 Regions. 12 Federacy Units (UF) and 31 of the 67 local areas (DDD). (More details).

 

Comparing the 1Q08 with the 1Q07. Vivo (including Telemig) lost market share. The others operators won market share except BrT in which kept still.

 

With the joint venture of Amazônia Celular, Oi assumed leadership in the states of Maranhão and Pará in the 1Q08 surpassing Tim. Lost leadership in Amapá (that was Amazônia) to Vivo.

 

Coverage: Tim leads in population and Vivo attended municipalities

 

Tim is still the only operator present in all Federacy Units (UF). It's leader in coverage, attending 87% of the population of Brazil. Vivo, with the joint venture of Telemig, became leader in number of municipalities, attending 50% of them.

 

 

Operator
Population
Municipalities
1Q08
1Q07
1Q08
1Q07
Tim
87%
86%
48%
44%
Claro
80%
78%
47%
42%
Vivo
76%
75%
50%
48%
Oi
41%
-
18%
-
BrT
21%
21%
15%
14%

Nota: Vivo including Telemig and Oi including Amazônia in the 1Q08 and 1Q07.

 

 

Growth: Oi leads 1Q08

 

Oi was the operators with more net adds in the 1Q08 (1,336 thousand cellulars), which led cellular growth in Brazil in february and march of 2008 (more details). This is the first time that Oi led a quarter in net adds.

 

Note: Vivo including Telemig and Oi including Amazônia from 1Q07 to 1Q08.

 

Tim was the 2nd in the 1Q08, with net adds of 1,279 thousand cellulars, followed by Claro (953 thousand) and Vivo (839 thousand).

 

With the joint venture of Telemig, Vivo now has net adds of 2,449 thousand cellulars in the 4Q07, surpassing Claro (2,247 thousand).

 

ARPU: BrT continues leading

 

Brasil Telecom (BrT) keot its leadership in ARPU, even with the decrease of 14.6% in the 1Q08 compared to the 4Q07. It's leader in ARPU since the 3Q07.

ARPU (R$) 1Q08 4Q07 1Q07
BrT
29.8
34.9
33.4
Vivo
29.5
30.6
29.7
Tim
29.5
34.0
34.4
Claro
26.0
27.0
27.0
Oi
21.3*
22.8
22.2

Nota: Vivo includes Telemig in the 1Q07, 4Q07 and 1Q08. Oi includes Amazônia in the 1Q07 and in the 4Q07. ARPU of Oi in the 1Q08 doesn't include Amazônia, that didn't publish its results of the 1Q08.

 

In the 1Q08 all the operators decreased in the value of ARPU. The promotions, more aggressive, of calls -reduced prices of minutes packs- between cellulars of the same operator, certainly contributed to this result. BrT, for example, justified the decrease in the value with the change in the behavior of incoming rates (received calls) by the operator.

 

The quantity of monthly minutes usage per user (MOU) in Brazil increased from 78 minutes in the 1Q07 to 84 minutes in the 1Q08. Tim is leader in MOU since the 1Q07. It's MOU in the 1Q08 was 94 minutes (more details).

 

 

Net Revenue: Vivo leads all quarters since the 1Q07

 

With the acquisition of Telemig, Vivo also expanded leadership in net revenue. Without Telemig, Vivo had been surpassed by Tim in the 4Q07, wich didn't happened in the 1Q08.

 

1Q08
Net Revenue (millions)
Revenue Share %
1Q08
1Q07
Vivo
3,686
33.3%
32.6%
Tim
2,993
27.0%
29.3%
Claro
2,645
23.9%
22.2%
Oi
1,269
11.5%
11.5%
BrT
426
3.8%
4.0%

Nota: Vivo includes Telemig and Oi includes Amazônia in the 1Q08 and in the 1Q07. The Revenue of Amazônia in the 1Q08 was predicted by Teleco.

 

Profit: Vivo leads thanks to Telemig

 

Vivo is the leader in EBITDA margin thanks to the joint venture of Telemig Celular.

 

1Q08
EBITDA margin%
EBIT margin%
Profit (loss.)
 
1Q07
1Q08
1Q08
1Q08
Vivo
27.7%
35.6%
27.9%
256
Tim
23.4%
17.9%
-1.2%
-108
Claro
27.4%
29.8%
9.5%
ND
Oi*
19.0%
34.9%
16.1%
154
BrT
1.1%
3.5%
-21.8%
-44

Nota: Vivo includes Telemig and Oi includes Amazônia. Amazônia was estimated by Teleco in the 1Q08.

 

The EBITDA margin of 35.6% gotten by Vivo in the 1Q08 had an additional EBITDA of Telemig because of the reversal of provisions of ICMS. Except that, tha EBITDA margin of Vivo would have been 29% and the leadership would've stay with Oi in the 1Q08.

 

Vivo also had the best result of EBIT margin and profit.

 

Quality: Vivo assumes leadership

 

The quality leadership in the 1Q08 was led by Vivo in which reached 99.0% of all the goals. Tim, which had been leader in the 1Q07, was in the 4th placement.

 

Attended Goals
1Q08
1Q07
Vivo
99.0%
92.0%
BrT
98.5%
96.0%
Claro
98.3%
92.3%
Tim
92.5%
97.9%
Oi
86.4%
90.9%

Note: Vivo includes Telemig and Oi includes Amazônia from 1Q07 to the 1Q08.

 

You could ask:

  • Will Vivo continue leading all the indicators in 2008?
  • And what about Claro? Will Claro lead in growth?
  • What will be big disputes in 2008?

 

 

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