Brazil Mobile-Phone Co TIM 2nd-Quarter Profit Up on Fewer Debt-Service Costs

By Rogerio Jelmayer

SAO PAULO--Brazilian mobile-phone company TIM Participacoes SA (TSU, TIMP3.BR) late Tuesday said its net profit rose nearly 18% in the second quarter, thanks to the reduction of its debt-service costs.

Net profit reached 405.8 million Brazilian reais ($178 million) in the second quarter, up from BRL344.3 million a year ago.

The company, the local unit of Telecom Italia SpA (TI, TIT.MI), said its debt-service costs totaled BRL41 million in the second quarter, down from BRL63.6 million.

TIM saw its operating costs increasing at a higher pace than its revenue.

The company's net revenue picked up 9.7% in the period to BRL4.98 billion, while its operating costs increased 11% to BRL3.71 billion.

The company said it ended the second quarter with 72.19 million lines in service, up 4.8% from a year ago.

Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com

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(END) Dow Jones Newswires

July 31, 2013 07:12 ET (11:12 GMT)

Copyright (c) 2013 Dow Jones & Company, Inc.

Source: http://www.euroinvestor.com/news/2013/07/31/brazil-mobile-phone-co-tim-2nd-quarter-profit-up-on-fewer-debt-service-costs/12430964

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