08/09/2010


Vivo, Tim and Oi are leaders in 2Q10

 

In the second quarter of 2010 (2Q10), Vivo conquered the leadership in 5 of the 7 indicators selected by Teleco.

 

 

Tim overcame Vivo and reached the leadership in the quarter. Oi confirmed its leadership in profitability.

 

 

Leader in
Indicator
Leader in 2009
Leader in 1Q10
Leader in 2Q10
Mobile Accesses
Market Share
Vivo
Vivo
Vivo
Growth
Net Adds
Vivo
Vivo
Tim
Revenue
Net Revenue
Vivo
Vivo
Vivo
Revenue by Client
ARPU
Tim
Vivo
Vivo
Profitability
EBITDA Margin
Vivo
Oi
Oi
Quality
Anatel's targets
Vivo
Vivo
Vivo
Coverage
Covered Population
Vivo
Vivo
Vivo

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

 

 

Since 2007, Teleco keeps track of mobile carriers performance in Brazil, measuring it through 7 indexes. The following presents the results for each of these indexes.

 

 

 

Market Share: Vivo and Tim gain market share in 2Q10

 

Vivo, main mobile operator in Brazil, closed 2Q10 with 56.0 million mobile accesses and 30.2% of market share.

 

 

 

 

Vivo gained 0.12 percentage points (p.p.) in market share in 2Q10, Tim got 0.35 p.p.. Claro and Oi lost market share. Kept the current trends, Oi’s market share is likely to be inferior than by the end of 3Q09.

 

 

-
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
p.p. (Quarter)
Vivo
29.70%
29.33%
29.40%
29.75%
30.12%
30.24%
0.12%
Claro
25.76%
25.36%
25.45%
25.52%
25.45%
25.33%
-0.12%
TIM
23.50%
23.71%
23.85%
23.63%
23.65%
24.00%
0.35%
Oi
20.67%
21.22%
20.93%
20.73%
20.41%
20.08%
-0.33%

 

 

In 2Q10, Vivo reached the leadership in Region I, overtaking Oi, and in 3 new Area Codes: Belo Horizonte (31) and Juiz de Fora (32) - both cities in the state of Minas Gerais, where the company overcame Oi - and in Coari (97) - in the state of Amazonas (97) - where it bet Tim.

Vivo is the leader in market share in 3 regions, in 12 of the 26 states (plus federal district) and in 31 of the 67 area codes.

 

-
Leader in em Market Share in 2Q10
Region
State*
Area Code
Vivo
I, II e III
12
31
Claro
-
6
13
Tim
-
5
17
Oi
-
4
6

*Brazilian states + Brasília (Federal District)

 

Claro became leader in Piauí by overtaking Tim.

Vivo is amplifying its leadership in market share and won't be threatened by other operators in 2010. On the other hand Tim, decreased the difference which separates de company from Claro, from 3.2 million in 1Q10 to 2.5 million in 2Q10.

 

Vivo is the leader in market share in postpaid and prepaid.

 

 

Market Share 2Q10
Postpaid
Prepaid
Vivo
34.7%
29.3%
Claro
27.3%
24.9%
Tim
21.3%
24.6%
Oi
16.1%
20.9%

 

 

 

Growth: Tim leads 2Q10

 

Tim reached the leadership in net adds in 2Q10, overtaking Vivo through a small margin (29 thousand mobile accesses).

 

 

 

Tim's leadership results from the expressive growth conquered in prepaid, which reached 83.4% of the company's net adds. Vivo, had 61.6% of postpaid net adds in Brazil in 2Q10.

 

Oi continues to lead in net adds in São Paulo (Region I) where it got 92% of its net adds, but presented low growth in other regions.

 

 

 

Net revenue: Vivo amplifies its advantage over Tim

 

Vivo kept its leadership in net revenue over Tim (which is in the second position).

 

 

R$ Millions
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
Vivo
4.0
4.0
4.1
4.4
4.2
4.4
Tim
3.2
3.5
3.4
3.5
3.3
3.5
Claro
2.7
2.8
3.1
3.2
2.8
2.9
Oi
2.0
2.2
2.4
2.5
2.5
2.6

Note: Tim includes Intelig. By the adoption of IFRS as accounting standard since 1T10, Vivo reviewed 1Q09, 2Q09 and 4Q09

 

 

Data revenue was responsible for most of the growth in Vivo's revenue. I was R$ 115 millions bigger than the one gotten in 1Q10, reaching R$ 802 million in 2Q10. Data revenue already represents 19.4% of Vivo's service net revenue. At Tim, voice is still the main responsible for revenue growth.

 

 

 

ARPU: Vivo remains in the leadership in 2Q10

 

R$
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
Vivo
27.3
26.3
26.4
27.1
24.8
25.0
TIM
26.2
26.8
26.5
27.0
24.0
24.1
Claro
23.0
23.0
23.0
22.0
20.0
19.0
Oi
21.1
21.0
22.2
22.5
21.8
22.4
ARPU Brazil
24.3
24.1
24.6
24.7
22.7
22.7

By the adoption of IFRS as accounting standard since 1T10, Vivo reviewed 1Q09, 2Q09 and 4Q09

 

 

Vivo, Tim and Oi presented small growth in ARPU in 2Q10. Claro kept the trend of fall in ARPU and held the fewest amount of monthly minutes of use per client (MOU).

 

 

Minutes
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
Vivo
77
80
89
119
116
114
Claro
85
73
86
93
92
93
TIM
70
73
90
99
100
110
MOU Brazil
77
76
88
105
103
106

Note: Oi doesn't release this indicator.

 

 

 

Profitability: Oi leads in EBITDA Margin

 

Oi mobile, led profitability for the second time consecutively, holding superior EBITDA margin when compared with other operators'. Claro, which focused profitability in 1Q10, turned out to be overtaken by Vivo in 2Q10.

 

 

EBITDA margin
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
Oi
16,9%
19,8%
30,5%
19,8%
32,4%
34,6%
Vivo
30,4%
30,3%
34,4%
31,7%
30,1%
30,5%
Claro
26,7%
25,9%
22,0%
24,5%
31,7%
26,3%
Tim
19,5%
21,9%
22,5%
27,7%
24,8%
25,1%
Brasil
24,2%
25,0%
27,4%
26,7%
29,4%
28,8%

Note: Tim includes Intelig. By the adoption of IFRS as accounting standard since 1T10, Vivo reviewed 1Q09, 2Q09 and 4Q09

 

 

The improvement in Oi's EBITDA margin, from 19.8% to 34.6%, happened due to the fact that Oi's net revenue increased 19.7% in the period and costs and expenses dropped 2.5%. The biggest savings occurred in handsets acquisition (- R$ 82 millions) and in marketing costs (- R$ 106 millions).

 

 

Quality: Vivo continues to lead

 

Vivo conquered the leadership in quality by meeting Anatel's quality targets in the beginning of 2008 and since then the company never lost it.

 

 

Accomplished targets
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
Vivo
99.9%
99.9%
99.3%
99.5%
99.9%
99.9%
Tim
95.7%
98.9%
95.8%
97.3%
98.5%
99.0%
Claro
88.0%
95.1%
89.1%
98.5%
98.7%
98.5%
Oi
91.4%
83.9%
82.7%
83.0%
82.8%
80.6%

 

 

Tim and Claro improved their performances in 2010, while Oi continues to present the lowest performance.

 

Vivo also holds the lowest index of complaints and the best performance in costumer care (IDA).

 

 

2Q10
Complaints (2Q10)
IDA (Jun/10)
Vivo
0.244
98.7
Tim
0.379
90.7
Claro
0.417
92.3
Oi
0.411
91.7

 

 

 

Coverage: Vivo keeps the leadership

 

Vivo keeps the leadership in coverage with 89.6% of covered population, but its leadership is being threatened by Tim which overtook Claro in the quarter.

 

 

  Covered Cities Covered Population
Operator 1Q10 2Q10 2Q10
Vivo 3,499 3,610 89.6%
Tim 2,922 3,202 89.4%
Claro 3,346 3,346 88.8%
Oi 2,516 2,912 83.0%

Source: Anatel

Note: Apr/10 was the end of the period in which operators should cover the cities with less than 30 thousands inhabitants, according to the agreement reached to acquire 3G frequencies. Anatel is still approving coverage in theses cities.

 

 

You could ask:

  • Will Tim continue to lead growth in the next quarters?
  • Will Oi keep the leadership in profitability?
  • Will Tim overtake Vivo in coverage?
  • Will Claro reach the leadership in any indicator?
  • Will Vivo acquisition (by Telefonica) and the entrance of Portugal Telecom at Oi affect operators' performance?

 

 

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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