Vivo x TIM: Which operator is having the best performance?
Vivo and TIM are the biggest mobile operators in Brazil.
Vivo is the leader in total of mobile accesses, counting 4.5 million more than TIM (which is in the second position) in the 1st quarter of 2014.
TIM leads prepaid mobile accesses, while Vivo is the leader in postpaid accesses.
 |
These differences were accentuated in 1Q14, with Vivo leading net adds in the total of mobile accesses and postpaid, on the other hand TIM leading prepaid.
 |
Vivo's good performance in 1Q14, leading mobile net adds in the quarter, is associated to the drop in its prepaid monthly churn from 5.3% in 4Q13 to 4.3% no 1T14.
 |
| Monthly Churn | 1Q13 |
2Q13 |
3Q13 |
4Q13 |
1Q14 |
| TIM | 4,0% |
4,1% |
4,4% |
4,5% |
4,0% |
| Vivo | 3,4% |
3,9% |
3,9% |
4,1% |
3,4% |
| Vivo prepaid | 4,0% |
4,7% |
4,8% |
5,2% |
4,3% |
| Vivo postpaid (excluding M2M) | 1,6% |
1,7% |
1,6% |
1,5% |
1,5% |
Vivo's average revenue per user (ARPU) is bigger than TIM's.
 |
A bigger focus on postpaid segment and in data services has contributed to this result. In 1Q14:
TIM mobile net revenue in 1Q14 answered to 79% of Vivo's revenue and increased 0.9% in comparison with 1Q13, while Vivo's grew 2.2% in this period.
 |
As a Group, Telefônica/Vivo is bigger than TIM Brasil due to its operation inside fixed segment (telephony, fixed broadband abd pay TV) in the state of São Paulo.
EBITDA margin registered by both groups were close in 1Q14, 29.8% gotten by Telefônica/Vivo and 28.0% registered by TIM. Telefônica/Vivo's net profit (R$ 661 million) was bigger than TIM's (R$ 372 million).
You could ask:
Send us your commentary! |
Click on: teleco@teleco.com.br Please let us know if you authorize the publication of your commentary.
Note: The opinions expressed in the published articles in this section are their authors' responsibility. |
