05/18/2009


Vivo increased leadership to 5 of the 7 indexes in 1Q09

 

 

Note: Vivo includes Telemig and Oi includes Amazônia and BrT

 

Teleco monitors the performance of cellular operators in Brazil, measuring it through 7 indexes presented in the following table with their respective leaders in the first quarter of 2009 (1Q09).

 

Leader in
Index
Leader in 4Q08
Leader in 1Q09
Cellulars
Market Share
Vivo
Vivo
Revenue p/ Client
ARPU
Tim
Vivo
Revenue
Net Revenue
Vivo
Vivo
Profitability
EBITDA Margin
Vivo
Vivo
Quality
Anatel's targets
Vivo
Vivo
Growth
Net adds
Claro
Oi
Coverage
Attended population
Claro
Claro

Note: The order doesn't reflect the importance of the indicators. CTBC and Sercomtel weren't included. Vivo includes Telemig and Oi includes Amazônia and BrT.

 

With the incorporation of Brasil Telecom by Oi in Jan/09, these indexes started to be evaluated for the four biggest cellular operators in Brazil: Vivo, Tim, Claro, Oi (including BrT).

 

Vivo, that in the last quarter (4Q09) was the leader in 4 indicators (Market Share, ARPU, Revenue, EBITDA Margin and Quality), increased this leadership in 1Q09, surpassing Tim in ARPU and becoming leader in 5 of the 7 indexes.

 

Claro remained in the first position, but losing leadership in Growth to Oi.

 

 

Market Share: Vivo consolidate itself in the leadership

 

 

 

Vivo's advantage in Market Share to Claro (operator in the 2nd position) is 3.9 percentage points. This difference is enough to ensure the leadership in Market Share in the following quarters of 2009, despite the gradual loss observed in the last quarters (more details).

 

 

 
Market
Share
Cellulars
(thousands)
Leaders in Market Share 1Q09
Region
State
Area Code
1Q09
1Q08
1Q09
1Q08
Vivo
29.7%
30.4%
45,641
38,309
II and III
11
29
Claro
25.8%
24.8%
39,587
31,182
-
4
11
Tim
23.5%
25.9%
36,110
32,533
-
5
17
Oi/BrT
20.7%
18.5%
31,761
21,910
I
7
10

Note: Oi includes BrT.

 

Vivo is the biggest cellular operator in Brazil with 45.6 million cellulars. The company is leader in Market Share in 2 regions, 11 States and in 29 of the 67 Area Codes (DDD). (More details)

 

 

ARPU: Vivo reaches the leadership

 

Vivo reached the leadership in ARPU, surpassing Tim which was the leader in 2008.

 

ARPU (R$)
1Q09
4Q08
1Q08
Vivo
27.0
29.1
29.5
Tim
26.0
29.9
29.5
Claro
23.0
25.0
26.0
Oi
21.1
25.0
23.9
ARPU Brasil
24.8
27.2
27.5

Note: Oi includes BrT.

 

All operators present drop in ARPU value in 1Q09, but this fall was bigger in Tim. Its base lost about 600 thousand post paid cellulars between 1Q08 and 1Q09.

 

Claro is the leader in Minutes of Use per client (MOU) counting 85 minutes, followed by Vivo reaching 77 minutes and Tim with 70 minutes. Oi doesn't release this index. (more details)

 

 

Net revenue: Vivo increases its advantage on Tim

 

In 1Q09, Vivo increased its advantage in "Market Share" in relation to Tim (in the 2nd position) to 8.2 percentage points.

 

 

1Q09
Net Revenue (millions)
Revenue Share %
1Q09
1Q08
Vivo
4,020
32.5%
33.4%
Tim
3,012
24.3%
27.2%
Claro
2,798
22.6%
24.0%
Oi
2,539
20.5%
15.3%

Note: Oi includes BrT.

 

The restructuring which Tim went through contributed to this results.

 

 

Profitability: Vivo with 29.9% of EBITDA Margin

 

 

-
EBITDA Margin
EBIT% Margin
Profit (loss)
1Q09
1Q08
1Q09
1Q09
Vivo
29.9%
35.4%
9.9%
124
Claro
25.6%
29.8%
10.0%
-
Tim
20.2%
17.9%
(1.1)%
-108
Oi
18.7%
25.8%
(0.8)%
64

Note: Oi includes BrT.

 

Vivo kept the leadership in EBITDA Margin and presented net profit of R$ 124 million. These results confirm the good moment for the operator, combining growth and profitability.

 

 

Quality: Vivo keep the leadership conquered in 2008

 

Vivo conquered the leadership in Anatel's attendance of quality targets in 1Q09 and never lost it. Tim, which had lost territory in the last quarters, got to recover in 1Q09.

 

 

Attended Targets
1Q09
1Q08
Vivo
99.9%
99.0%
Tim
95.7%
92.5%
BrT
95.5%
98.5%
Oi
89.7%
93.6%
Claro
89.2%
98.3%

 

 

 

Growth: Oi leads in 1Q09

 

Oi was the operator counting more net adds in 1Q09 (1,768 thousand cellulars), leading cellular growth in Brazil in all the months of the quarter. (more details)

 

 

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

 

This development is mainly due to Oi's performance in São Paulo, responsible for 44% of its net adds in the quarter.

 

 

Coverage: Claro keeps leadership

 

Claro is the leader in Coverage, attending 91% of the Brazilian population and 62% of the cities.

 

 

Operator
Population
Cities
1Q09
1Q08
1Q09
1Q08
Claro
91%
80%
62%
47%
Vivo
89%
76%
62%
50%
Tim
89%
87%
54%
48%
Oi
84%
62%
44%
33%

Note: Vivo includes Telemig; Oi includes Amazônia and BrT

 

 

You could ask:

  • Will Vivo continue to lead in all these indexes during 2009?
  • What about Claro? Will the company lead growth again?
  • What big competitions will take place in 2009?
  • Will Quality be the main factor to determine the leadership in Market and Revenue Share in 2009?

 

 

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

 

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

 

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