Vivo increased the leadership in indexes in 4Q08
Since 2007, Teleco keeps track of cellular operators performance in Brazil through seven indexes which are presented in the following with their respective leaders.
| Leader in | Index |
Leader in 1Q08 |
Leader in 2Q08 |
Leader in 3Q08 |
Leader in 4Q08 |
| Cellulars | Market Share |
Vivo |
Vivo |
Vivo |
Vivo |
| Growth | Net Adds |
Oi |
Vivo |
Claro |
Claro |
| Coverage | Attended Population |
TIM |
TIM |
Tim/Claro |
Claro |
Revenue per Client |
ARPU |
BrT |
Tim |
Tim |
Tim |
| Revenue | Net Revenue |
Vivo |
Vivo |
Vivo |
Vivo |
| Profitability | EBITDA Margin |
Vivo |
Oi |
Oi |
Vivo |
| Quality | Anatel 's targets |
Vivo |
Vivo |
Vivo |
Vivo |
Note: The order doesn't show the importance of the indexes. CTBC and Sercomtel weren't included. Vivo includes Telemig and Oi includes Amazônia.
Vivo expanded its leadership in the 4th quarter of 2008 (4Q08) reaching the headship in profitability and becoming the leader in 4 of the 7 indexes.
Claro (leader in 2 indexes) consolidated its leadership in coverage and Tim kept its headship in ARPU.
The following presents an analysis of these results.
Market Share: Vivo keeps leadership
Vivo is the biggest Brazilian cellular operator, finished 2008 counting 45.3 million cellulars and market share of 29.8%. Claro overcame Tim in 3Q08.
| Market Share | 1Q08 |
2Q08 |
3Q08 |
4Q08 |
| Vivo | 30.5% |
30.4% |
30.0% |
29.8% |
| Claro | 24.8% |
24.9% |
25.3% |
25.7% |
| Tim | 25.9% |
25.4% |
25.0% |
24.2% |
| Oi | 14.9% |
15.2% |
15.5% |
16.2% |
| BrT | 3.6% |
3.8% |
3.7% |
3.7% |
Note: Vivo includes Telemig and Oi includes Amazônia
Vivo is the leader in market share in 2 Regions, 11 States and in 30 of 67 Area Codes (DDD). In the quarter, the company lost the leadership in Area Code 17 for Claro.
| - | Leader in Market Share 4Q08 in |
||
Region |
States* |
Area Code |
|
| Vivo | II and III |
12 |
31 |
| Claro | - |
3 |
9 |
| Tim | - |
4 |
16 |
| Oi | I |
8 |
11 |
| BrT | - |
- |
- |
Growth: Claro leads in 4Q08 and in the year
Claro was the operator with biggest net adds in 4Q08, leading the 4th quarter and the accumulated in the year.
 |
 |
Claro surpassed other operators in the quarter, even when considered BrT's incorporation by Oi.
Coverage: Claro reaches leadership in 4Q08
Claro became the leader in coverage by attending 90% of the Brazilian population and 60% of the cities.
| Operator | Population |
Cities |
||||||
1Q08 |
2Q08 |
3Q08 |
4Q08 |
1Q08 |
2Q08 |
3Q08 |
4Q08 |
|
| Tim | 87% |
87% |
87% |
88% |
48% |
49% |
50% |
51% |
| Claro | 80% |
81% |
87% |
90% |
47% |
48% | 53% |
60% |
| Vivo | 76% |
77% |
83% |
85% |
50% |
51% |
54% |
54% |
| Oi | 41% |
41% |
61% |
62% |
18% |
18% | 24% |
26% |
| BrT | 21% |
21% |
21% |
21% |
15% |
15% | 17% |
18% |
ARPU: Tim keeps the leadership
| ARPU (R$) | 1Q08 | 2Q08 | 3Q08 | 4Q08 |
| Tim | 29.5 |
29.8 |
29.7 |
29.9 |
| Vivo | 29.5 |
28.8 |
29.4 |
29.1 |
| BrT* | 29.8 |
29.2 |
28.8 |
22.4 |
| Claro | 26.0 |
26.0 |
25.0 |
25.0 |
| Oi | 21.3 |
22.0 |
22.1 |
22.7 |
*By the acquisition of Oi, BrT reviewed the criterion for determination of the ARPU which is now of R$ 24.1 (1Q08), R$ 23.5 (2Q08) and R$ 23.4 (3Q08)
In 4Q08, Tim kept leadership in ARPU (R$ 29.9), though being threatened by Vivo (R$ 29.1).
Net revenue: Vivo leads and grows in revenue share
Vivo remained in the leadership in revenue with a good margin in comparison with Tim, which is the second.
| 4Q08 | Net Revenue (millions) |
Revenue Share % |
|||
1Q08 |
2Q08 |
3Q08 |
4Q08 |
||
| Vivo | 4,268 |
33.3% |
32.4% |
33.0% |
32.9% |
| Tim | 3,544 |
27.1% |
27.3% |
27.2% |
27.3% |
| Claro | 3,089 |
23.9% |
24.4% |
23.8% |
23.8% |
| Oi | 1,517 |
11.4% |
11.5% |
11.7% |
11.7% |
| BrT | 512 |
3.9% |
4.0% |
3.9% |
3.9% |
Profitability: Vivo leads in 4Q08
Vivo hit leadership in EBITDA Margin in 4Q08.
| 3Q08 | EBITDA Margin% |
EBIT Margin% |
Profit (loss) R$ million |
|||
1Q08 |
2Q08 |
3Q08 |
4Q08 |
4Q08 |
4Q08 |
|
| Vivo | 35.4% |
23.2% |
32.5% |
32.7% |
13.6%
|
216 |
| Oi | 33.3% |
34.0% |
32.3% |
31.0% |
15.6% |
77.5 |
| Tim | 17.9% |
20.0% |
23.8% |
26.2% |
8.6% |
300 |
| Claro | 29.8% |
22.8% |
22.9% |
19.8% |
1.5% |
- |
| BrT | 3.5% |
6.3% |
14.7% |
11.7% |
-5.4% |
(16) |
Considering the whole year, Oi was the leader in EBITDA Margin in 2008 with 32.4%, followed by Vivo with 30.8%.
Quality: Vivo confirms leadership
In 4Q08, Vivo kept the leadership in quality in 2008, reinforcing its image as "quality signal".
| Accomplished goals | 1Q08 |
2Q08 |
3Q08 |
4Q08 |
2008 |
| Vivo | 99.0% |
99.7% |
99.6% |
99.6% |
99.5% |
| BrT | 98.5% |
99.0% |
99.5% |
93.9% |
97.7% |
| Claro | 98.3% |
98.8% |
98.5% |
96.3% |
98.0% |
| Tim | 92.5% |
91.5% |
92.3% |
90.2% |
91.6% |
| Oi | 86.4% |
84.8% |
81.8% |
82.6% |
83.9% |
Note: Vivo includes Telemig and Oi includes Amazônia.
Based on the analysis of these indexes, we can conclude that in 4Q08 Vivo was highlighted, leading in 4 indicators including profitability which the company had lost to Oi.
Leaders of 2007 x 2008
| Leader in | Indexes |
Leader in 2007* |
Leader in 2008 |
| Cellulars | Market Share |
Vivo |
Vivo |
| Growth | Net Adds |
Claro |
Claro |
| Coverage | Attended Population |
Tim |
Claro |
Revenue per Client |
ARPU |
BrT |
Tim |
| Revenue | Net Revenue |
Vivo |
Vivo |
| Profitability | EBITDA Margin |
Telem/ Amaz |
Oi |
| Quality | Anatel's targets |
Telem/ Amaz |
Vivo |
* Vivo doesn't include Telemig in 2007.
By the incorporation of Telemig by Vivo and Amazônia by Oi, the leadership in 2008 was shared between Vivo (Market Share, Revenue and Quality), Claro (Growth and Coverage), Tim (ARPU) and Oi (Profitability).
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