Competition for the leadership in revenue in 2009: Vivo x Tim x Claro
In the first quarter of 2009 (1Q09), Vivo consolidated itself as leader in cellular revenue in Brazil. Its net revenue in 1Q09 presented the biggest growth (9.2%) in comparison with 1Q08. In the period, Tim's net revenue had only 0.6% raise, and Claro's 5.8%.
Note: Oi/BrT still didn't release its results for 1Q09.
Tim, which lost the second position in the market share ranking to Claro in 2008, is also threatened in the revenue ranking by this operator.
In 1Q09, Tim went through a restructuring and promoted a cleaning of over 1 million cellulars in its clients base. The company attributed the low revenue growth in 1Q09 to the deterioration of its clients base in post paid and its little aggressiveness in prepaid. Tim's clients base in post paid decreased from 6.8 million in 1Q08 to 6.2 million in 1Q09.
The fall in Tim's revenue wasn't bigger due to the growth in AUG (Administrative Unit Group) revenues and devices sales. Tim got back to promotions on subsidized devices, similar to the promotions offered by Vivo and Claro.
| Tim's Gross Revenue | 1Q09 (R$ Millions) |
Growth 1Q09/1Q08 |
| Service Revenue | 3,835 |
-1.6% |
| Usage and Subscription | 1,879 |
-3,8% |
| Long Distance | 456 |
-6.9% |
| Net Use | 1,046 |
-5.0% |
| AUG - Additional Services | 430 |
31.4% |
| Other revenues | 25 |
-10.0% |
| Revenue of devices sales | 378 |
17.3% |
| Total Gross Revenue | 4,212 |
-0.2% |
The drop in the revenue came together with a fall in Tim's ARPU, from R$ 29.5 in 1Q08 to R$ 26.0 in 1Q09. The company presented also worse results than Vivo and Claro's indicators like MOU, Churn, Ebitda Margin and Profit.
1Q09 |
Prepaid |
ARPU (R$) |
MOU (minutes) |
Churn |
EBITDA Margin |
Met Profit (R$million) |
| Vivo | 80.7% |
27 |
77 |
2.4% |
29.9% |
124 |
| Claro | 79.4% |
23 |
85 |
2.5% |
25.6% |
- |
| Tim | 82.9% |
26 |
70 |
3.8% |
20.2% |
-144 |
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