TIM reveals 5G coverage, 5G user base, ARPU growth

TIM SA, a telecom operator in Brazil, has revealed its 5G coverage, 5G subscriber base, ARPU growth and Capex during the first quarter of 2023.
TIM Brazil Q1 2023TIM SA has posted 20.2 percent increase in revenue to R$5.681 billion during the first quarter of 2023 powered by 21.1 percent growth in mobile service and 6 percent growth in fixed service, mainly driven by 9.4 percent increase in TIM FTTH, and 21 percent increase in Product Revenue.

Mobile service revenue rose 21.1 percent to R$5.193 billion in 1Q23, driven by Oi Mobile revenues, in addition to performance in the Prepaid and Postpaid segments.

Mobile ARPU increased 1.7 percent to R$27.9 in the quarter, returning to an annual growth despite the diluting effect because of the addition of customers from Oi, which had a lower ARPU, TIM said in its earnings report.

Prepaid revenue increased 27.3 percent. Prepaid ARPU rose 5.4 percent to R$13.9.

Postpaid revenue increased 21.1 percent. Postpaid ARPU grew 3.6 percent to R$40.5.

Fixed service revenue grew 6 percent to R$315 million.

TIM UltraFibra, the main fixed revenue line, grew 9.4 percent.

TIM UltraFibra ARPU rose 1.7 percent to R$92.9.

TIM has FTTH customer base of 592,000. TIM has FTTC customer base of 140,000.

Capex fell 3 percent to R$1,289, due to a reduction on investments allocated in the “IT and Others” line. Total Capex intensity reached 22.7 percent in Q123, down by -5.4 p.p. compared to 1Q22. TIM SA indicated that there will be further reduction in Capex. TIM does not reveal 5G Capex.

TIM’s 5G coverage reached 45 cities in Q1 2023 vs 27 in Q4 2022.

TIM’s 5G user base reached 1,924,000 in Q1 2023 vs 1,286,000 in Q4 2022.

TIM launched a partnership with Grupo Way Brasil aiming to connect more than 600 km of highways with 4G. TIM disconnected approximately 1,500 sites until the end of March 2023.