07/26/2011


Claro improved its performance in 2Q11

 

 

In the second quarter of 2011, Claro showed improvement in its economic and operational results.

 

The company ended 2Q11 with market share reaching 25.55%, the biggest registered in two years.

 

 

This result wasn't enough, however, to avoid TIM approach that, according to Anatel's preliminary data, ended the quarter with the same market share as Claro (25.55%) with disadvantage of only 9.5 thousand mobile accesses over Claro. Claro stayed in the second position in net adds in 2Q11 by hitting 2,096 thousand cellulars, behind TIM (2,676 thousand).

 

In 2Q11 Claro increased its focus on prepaid segment. In 4Q10 the carrier conquered 53.5% of the postpaid net adds in Brazil and 20.2% of the prepaid market. In 2Q11 hit 32.2% of postpaid net adds and 30.1% of the total of prepaid net adds in Brazil.

 

 

 

Claro's ARPU remained low in 2Q11 (R$ 17) and MOU fell again (84 minutes). These results indicate that the operator may need to clean its base, turning off all inactive mobile accesses. The churn increased from 3.3% in 1Q11 to 3.5% in 2Q11.

 

In 2Q11 Claro's net adds resumed growth (3.4%), growing more than Embratel (2.5%). In comparison with 2Q10, Claro's revenue increased 3.7%.

 

 

 

 

As a result of Claro's low growth in 2010, the carrier was overtaken by Embratel. In 2Q11, Claro surpassed Embratel.

 

 

Neet Revenue
R$ million
2Q11
Growth
Quarter
Annual
Claro
3,060
3.4%
3.7%
Embratel
3,033
2.5%
10.5%
NET
1,629
4.2%
24.3%
América Móvil (Brazil)
7,722
3.2%
10.2%

 

 

These results confirmed the good performance of América Móvil Group in Brazil. In 1Q11, it overtook Oi and became the second group in net revenue in the country, behind Telefonica only.

 

You could ask:

  • Will Claro continue to fight to keep the second position in market share?
  • Will the merger of Claro, Embratel and Net be announced in this year?

  • What should Claro do in order to improve its ARPU and MOU?
  • Will churn be under control in 3Q11?

 

 

 

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

 

 

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