Cellular leaders 2Q07. What changes with Telemig/Amaz sale?
Teleco has been checking since 1st quarter 2007 (1Q07) the cellular leaders in Brazil according to 7 indicators (more details). The following table presents the selected indicators and leaders in the 1Q07 and 2Q07.
| Leader in | Indicator |
Leader 1Q07 |
Leader 2Q07 |
| Cellulars | Market Share |
Vivo |
Vivo |
| Growth | Net Adds |
Tim |
Claro |
| Revenue | Net Revenue |
Vivo |
Tim |
| Revenue per client | ARPU |
Tim |
Tim |
| Income | EBITDA Margin |
Telemig/ Amaz |
Telemig/ Amaz |
| Coverage | Population attended |
Tim |
Tim |
| Quality | Anatel goals |
Telemig/ Amaz |
Telemig/ Amaz and Oi |
Note: CTBC and Sercomtel weren't included.
According to these indicators cellular leadership in Brazil 2Q07:
Vivo announced on 08/5/07 the acquisition of Telemig/Amazônia. If this acquisition didn't happen in the 2Q06 Vivo wouldn't lose revenue leadership to Tim and Oi would be leader in earning and quality in the quarter. |
Cell Phone quantity: Market Share and Growth
Vivo continues being the bigger cell phone operator of Brazil with 30.2 million cellulars and market share of 28.35%. It leads market share in 2 Regions, 11 States (UF) and 27 of the 67 local areas (DDD). (More details)
| 2Q07 | Market Share |
Cellulars (thousands) |
Market Share Leader |
||
Region |
State |
Local Area |
|||
| Vivo | 28.35% |
30,241 |
II and III |
11 |
27 |
| Tim | 25.78% |
27,493 |
I |
7 |
20 |
| Claro | 24.61% |
26,252 |
- |
3 |
7 |
| Oi | 12.78% |
13,634 |
- |
4 |
9 |
| Telemig/Amaz | 4.53% |
4,837 |
- |
2 |
4 |
| BrT | 3.53% |
3,769 |
- |
- |
- |
The main change comparing to the 1Q07 was Oi which lost leadership in Region I to Tim.
With Telemig/Amazônia joint venture, Vivo would have:
The joint venture wouldn't be enough for Vivo to exceed Claro in growth. |
Claro is the leadership in net adds on this quarter and also in the accumulated of the year, reducing its leadership comparing to Tim to 1.2 million cellulars. Was also the operator with more percentage growth (6.7%) in the quarter.
Vivo grew in the 2Q07 with net adds superior to Tim.
Revenue and ARPU
Tim was leader in net revenue 2Q07.
| R$ Thousands | 1Q07 |
2Q07 |
Revenue Share |
| Vivo | 2,851 |
3,021 |
29.0% |
| Tim | 2,843 |
3,060 |
29.3% |
| Claro | 2,155 |
2,431 |
23.3% |
| Oi Celular | 1,000 |
1,028 |
9.9% |
| Telemig/Amaz | 432 |
461 |
4.4% |
| BrT | 385 |
429 |
4.1% |
Vivo kept gross revenue leadership with R$ 4,310 mn against R$ 4,216 mn of Tim.
Tim's leadership is because of the best ARPU gotten.
| R$ | 1Q07 |
2Q07 |
| TIM | 34,4 |
34,6 |
| BrT | 33,4 |
33,8 |
| Vivo | 30,0 |
29,9 |
| ARPU Brasil | 29,3 |
29,4 |
| Telemig | 27,6 |
29,2 |
| Amaz Cel | 28,4 |
28,9 |
| Claro | 27,0 |
27,0 |
| Oi | 21,6 |
21,5 |
With Telemig/Amazônia joint venture Vivo would be leader in revenue but would keep 3rd position in ARPU.
|
Earning
Telemig/Amazônia Celular was leader in earning 2Q07, with EBITDA margin and EBIT superior to the other. Telemig/Amazônia Celular, Tim and Oi Celular presented good profit in the quarter.
| 2Q07 | EBITDA Margin |
EBIT Margin |
Profit* |
| Telemig/Amaz | 34.0% |
17.3% |
43 |
| Oi | 25.9% |
8.4% |
102 |
| Claro | 24.7% |
7.2% |
ND |
| TIM | 24.3% |
5.7% |
34 |
| Vivo | 21.0% |
1.1% |
-112 |
| BrT GSM | 1.2% |
-21.0% |
-48 |
*R$ Millions
Telemig/Amazônia and Vivo joint venture would rise EBITDA margin in 22.7%. Oi would lead profit 2Q07. |
The results of 2Q07 indicate that operators are getting good earning in 2007. EBITDA margin average increased from 15.4% in the 2Q06 to 23.1% in 2Q07.
Coverage and Quality
Tim, only operator that operates in all States in Brazil, is the leader in population and attended cities.
| Operator | Population |
Cities |
| Tim | 86% |
44% |
| Claro | 78% |
42% |
| Vivo | 67% |
41% |
| Oi | 39% |
15% |
| Brasil Telecom | 21% |
14% |
| Telemig/Amaz | 15% |
9% |
With Telemig/Amazônia / Vivo joint venture, Vivo would have coverage in Minas Gerais, missing only Northeast States (area 8) to reach national coverage. Vivo would lead in coverage cities (48%), but would continue 3rd in population attended (76%). |
Telemig/Amazônia Celular was leader in quality attendance 2Q07.
| Attended Goals | 1Q07 |
2Q07 |
| Telemig/Amaz | 98.0% |
100% |
| Oi | 79.5% |
100% |
| Vivo | 91.0% |
97.2% |
| Brasil | 94.3% |
96.5% |
| Tim | 97.9% |
95.9% |
| Claro | 92.3% |
95.1% |
| BrT GSM | 96.0% |
94.4% |
Oi and Telemig/Amazônia celular, attended 100% of the quality goals in 2Q07. Telemig/Amaz attended 99% of the goals and Oi 91.8% (more details).
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