08/17/2009


Vivo, Claro, Tim and Oi share leadership in 2Q09

 

Since 2007 Teleco follows mobile operators’ performance in Brazil measuring it through 7 indicators.

 

In the 2nd quarter (2Q09), Vivo remained as leader in most of the indexes (Market Share, Revenue, EBITDA Margin and Quality) been, however, surpassed by Tim in ARPU. Oi continued to lead in Growth and Claro in Coverage.

 

 

 

 

 

Leader in
Indicator
Leader in 2008
Leader in 1Q09
Leader in 2Q09
Cellulars
Market Share
Vivo
Vivo
Vivo
Revenue per Client
ARPU
Tim
Vivo
Tim
Revenue
Revenue Share
Vivo
Vivo
Vivo
Profitability
EBITDA Margin
Vivo
Vivo
Vivo
Quality
Anatel's Targets
Vivo
Vivo
Vivo
Growth
Net Adds
Claro
Oi
Oi
Coverage
Covered Population
Claro
Claro
Claro

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

 

The following brings an analysis of each indicator.

 

 

Growth: Oi repeats leadership in 2Q09

 

Oi repeated the performance of 1Q09 and remained leader in growth in 2Q09 holding net adds of 2.1 million cellulars.

 

 

 

Oi's growth in 2009 has being motivated by its entrance in São Paulo and by more aggressive plans in BrT's region where the company conquered 775 thousand cellulars in 2Q09.

 

Oi overcame other operators including in May, month in which the company got 60% of its net add in 2Q09 (more details).

 

 

 

 

Market Share: Vivo consolidates itself in the leadership

 

Vivo is the biggest mobile carrier in Brazil counting 48.6 million cellulars and market share of 29.33%.

 

 

 

Vivo is losing market share slowly. The difference from Oi fell from 11.92 percentage points (p.p.) in 1Q08 to 8.11 p.p. in 2Q09.

 

However, Vivo got to increase the distance from the second company in the ranking (Claro), from 3.94 percentage points in 1Q09 to 3.97 p. p. in 2Q09.

 

 

Market Share
2Q08
1Q09
2Q09
Difference to Vivo
Vivo
30.36%
29.70%
29.33%
-
Claro
24.87%
25.76%
25.36%
3.97 p.p.
Tim
25.40%
23.50%
23.71%
5.62 p.p.
Oi
19.01%
20.67%
21.22%
8.11 p.p.

 

 

Claro lost market share in this quarter, from 25.76% in 1Q09 to 25.36% in 2Q09, this fact didn't take place since 1Q08. Tim increased in 0.21 p.p. its market share in 2Q09, reversing a trend of loss which had happened since 1Q09.

 

Vivo is the market share leader in 2 region, 11 states and 28 area codes.

 

 

 
Market Share leader in 2Q09
Region
State
Area Code
Vivo
II e III
11
28
Claro
-
4
12
Tim
-
6
18
Oi
I
6
9

 

 

ARPU: Tim resumes the leadership

 

Tim resumes the leadership in ARPU which the company had lost to Vivo in the previous quarter.

 

ARPU (R$)
4Q08
1Q09
2Q09
Tim
29,9
26,0
26,6
Vivo
29,1
27,0
26,3
Claro
25,0
23,0
23,0
Oi*
25,0
21,1
21,0
ARPU Brazil
27,4
24,5
24,4

Note: Oi includes BrT.

 

The trend of fall in ARPU, which was observed in the last quarter, remained in this quarter. Only Tim presented growth in ARPU, the other operators presented fall.

 

Vivo was the leader in monthly minutes of use (MOU) with 80 minutes, followed by Tim and Claro with 73 minutes. Oi didn't release this index (more details).

 

 

Revenue Share: Vivo amplifies its advantage over Tim

 

Vivo kept its advantage in revenue share over the 2nd operator of the ranking (Tim).

 

2Q09
Revenue Share (millions)
Revenue Share %
2Q09
2Q08
Vivo
3,936
31.7%
32.4%
Tim
3,304
26.6%
27.2%
Claro
2,948
23.8%
24.4%
Oi
2,165
17.4%
15.3%

Note: Oi includes BrT.

 

The growth in the handset and accessories revenue helped Tim to amplify its revenue share from 25.3% in 1Q09 to 26.6% in 2Q09 (more details).

 

 

Profitability: Vivo's EBITDA Margin of 30.4%

 

Vivo kept the leadership in EBITDA margin and increased its net profit to R$ 172 million in 2Q09. Oi and Tim, that got negative EBIT margin in 1Q09, recovered in this quarter.

 

 

-
EBITDA Margin
EBIT Margin
Profit (loss)
2Q09
2Q08
2Q09
2Q09
Vivo
30.4%
35.4%
9.6%
172
Claro
24.8%
29.8%
9.5%
-
Tim
22.3%
17.9%
2.7%
-15
Oi
19.8%
25.8%
7.1%
58

Note: Oi includes BrT.

 

 

Quality: Vivo continues to lead

 

Vivo conquered the leadership in the accomplishment of Anatel's quality targets in 1Q08 and didn't lose it anymore.

 

Targets Accomplished
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
Vivo
99.0%
99.7%
99.6%
99.6%
99.9%
99.9%
Tim
92.5%
91.5%
92.3%
90.2%
95.7%
98.9%
Claro
98.3%
98.8%
98.5%
96.3%
88.0%
94.1%
Oi/BrT
93.6%
93.3%
92.4%
89.4%
89.7%
79,9%

 

Tim, which had lost share in the previous quarters, recovered in 1Q09. On the other hand, Oi presented low performance in this quarter falling to 79.9%.

 

 

Coverage: Claro keeps the leadership

 

Claro is the leader in coverage reaching 88.3% of the Brazilian population. Vivo, however, leads in number of covered municipalities.

 

 

Operator
Population
Municipalities
2Q09
2Q08
2Q09
2Q08
Claro
88.3%
81%
56.7%
48%
Vivo
85.7%
77%
58.7%
51%
Tim
88.1%
87%
52.4%
49%
Oi
84.2%
62%
45.3%
33%

Note: Oi includes BrT

 

 

You could ask:

  • Will Vivo continue to be the leader in all these indexes during 2009?
  • Will Tim keep its leadership in ARPU?
  • What about Claro? Is the company going to resume the leadership in Growth?
  • What competitions will take place in 2009?
  • What factor will determine the leadership in Market and Revenue Share in 2009?

 

Send us your commentary!

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Note: The opinions expressed in the published articles in this section are their authors' responsibility.

 

 

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