SAO PAULO Feb 2 TIM Participaçoes SA
, Brazil's second-largest wireless phone company, said
on Thursday it aims to trim capital spending in the next three
years while expanding its operating margins and maintaining
positive revenue growth.
Investments next year should fall by about 10 percent to
around 4 billion reais ($1.3 billion), TIM said in its new
2017-2019 business plan. Net revenue, which fell 9 percent in
2016, should grow every quarter under the plan.
TIM also said its earnings before interest, taxes,
depreciation and amortization, or EBITDA, should rise to more
than 36 percent of revenue in 2019 from 33.5 percent last year.
The plan reflects TIM's efforts to focus on more profitable
post-paid clients and leave behind a reputation as a less
reliable low-cost carrier, which positioned the company poorly
for a recession that has squeezed demand from pre-paid users.
The wireless carrier gave the outlook alongside its
fourth-quarter earnings report, which showed a 22 percent drop
in net income from a year earlier to 364 million reais ($117
million) due to more capital spending and financial expenses.
Still, profit beat a consensus estimate of 217 million reais
compiled by Thomson Reuters.
EBITDA rose 4 percent from a year earlier to 1.568 billion
reais, beating a consensus of 1.401 billion reais.
($1 = 3.1235 reais)
(Reporting by Brad Haynes; Editing by Sandra Maler)