Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____
Press Release
Third Quarter 2004 Results
Contacts | Paulo Roberto Cruz Cozza Chief Financial Officer and Director of Investor Relations |
|
Joana Dark Fonseca Serafim Investor Relations (41) 9913-0006 / 312-6862 jserafim@timsul.com.br |
||
Rafael J. Caron Bósio Investor Relations (41) 9913-0426 / 312-6862 rbosio@timsul.com.br |
Leonardo Wanderley Investor Relations (81) 9923-0023 / (81) 3302-2594 lwanderley@timsul.com.br Leonardo.wanderley@timnordeste.com.br |
|
Website http://www.timpartri.com.br |
Curitiba, October 26, 2004 TIM Participações S.A. (BOVESPA: TCLS3 and TCLS4; and NYSE: TSU), the holding company of TIM Sul S.A. and TIM Nordeste Telecomunicações S.A., today announced its results for the 3rd quarter, 2004 (3Q04). TIM Participações S.A. provides cellular telecommunications services in the states of Paraná, Santa Catarina, Piauí, Ceará, Rio Grande do Norte, Paraíba, Pernambuco, Alagoas and in the city of Pelotas (RS) through its operators. The financial and operational information below, except when otherwise indicated, is presented on a consolidated basis and in Reals, according to the Brazilian Corporate Law, and the comparisons refer to the third quarter 2003 (3Q03), except where otherwise indicated.
TIM PARTICIPAÇÕES S.A.
ANNOUNCES ITS CONSOLIDATED RESULTS
FOR THE THIRD
QUARTER 2004
Merger of Tele Nordeste Celular Participações S.A. (TND) into Tele Celular Sul Participações S.A (TSU)
Change in the corporate name from Tele Celular Sul Participações S.A. to TIM Participações S.A. (TIM Participações)
Start of trading of TIM Participações shares on Bovespa and NYSE
GSM leader In market acquisitions
+ 144.7% in net additions and + 29.4% in customer base over the 3Q03
Enriched VAS portfolio
97.4% growth YoY in VAS (Value-Added Service) revenues
28.2% growth YoY in total gross revenues
35.6% EBITDA margin on the total net revenues, stable YoY
R$ 77.1 million net income: + 36.8 % YoY.
Tele Nordeste merged into Tele Celular Sul
On August 19, 2004 and August 30, 2004, at the Annual Shareholders Meetings of Tele Nordeste Celular Participações S.A. (TND) and Tele Celular Sul Participações S.A. (TSU), respectively, the merger of TND into TSU was approved. In addition, Tele Celular Sul Participações S.A. changed its corporate name changed to TIM Participações S.A. |
With the merger, TIM Participações S.A. now holds TIM Nordeste Telecomunicações S.A. (formerly held by TND), along with TIM Sul S.A. Through these two operators, the Company provides cellular communications services in six states in the Northeast of Brazil, as well as two states and one city in the Southern Region of the country. |
On October 11, 2004, TIM Participações S.A. shares of stock began trading on Bovespa under the ticker name TIM PART S/A. The trading codes of former Tele Celular Sul, namely TCSL3 for common shares, and TCSL4 for preferred shares, were maintained. As for our ADRs, trading on the New York Stock Exchange (NYSE) started on October 15, 2004, keeping the ticker TSU. |
Analysis of the Economic-Financial Performance
As a result of the corporate restructuring, TNDs results accrued up to September 2004 were added to TIM Participações S.A. (TSUs new corporate name) 3Q04 results, thus affecting the analysis of the quarterly information, as well as any comparisons made with information from preceding quarters. |
Therefore, for the purpose of analyzing TIM Participações S.A. economic-financial performance, pro forma were prepared for the 3Q04, as if the merger had occurred on June 30, 2004, mirroring the combined results of TSU and TND. The same criterion was used for 3Q03, as if the merger had taken place on June 30, 2003 instead. The data accumulated up to September 30, 2003 are also pro forma. |
Select Data
3Q03 | 3Q04 | Var. % | YTD | YTD | |
3Q04/03 | Sept/03 | Sept/04 | |||
Total Gross Revenue | 679.211 | 870.825 | 28.2% | 1,977,013 | 2,427,589 |
Gross Service Revenue | 580.848 | 707.305 | 21.8% | 1,724,893 | 2,009,390 |
Gross Handset Revenue | 98.363 | 163.520 | 66.2% | 252.120 | 418.199 |
Total Net Revenue | 524.297 | 647.980 | 23.6% | 1,536,789 | 1,816,930 |
Net Services Revenue | 448,503 | 538,799 | 20.1% | 1,341,711 | 1,530,129 |
Net Handsets Sales | 75,794 | 109,181 | 44.0% | 195.078 | 286.801 |
EBITDA | 185.023 | 230.734 | 24.7% | 575,641 | 617.718 |
EBITDA Margin | 35.3% | 35.6% | +0.3 p.p. | 37.5% | 34.0% |
EBIT | 74.896 | 112.871 | 50.7% | 245.707 | 271.175 |
EBIT Margin | 14.3% | 17.4% | + 3.1 p.p. | 16.0% | 14.9% |
Net Income | 56.367 | 77.099 | 36.8% | 169.924 | 201.088 |
Market
Net Addition | Lines | |||||
3Q03 | 3Q04 | Var. % | YTD | YTD | Var. % | |
3Q04/03 | Sept/03 | Sept/04 | YoY | |||
Southern Region | 75.349 | 211,115 | 180.2% | 1,887,030 | 2,628,908 | 39.3% |
Northeast Region | 71,048 | 147,148 | 107.1% | 2,100,578 | 2,531,994 | 20.5% |
TIM Participações S.A. | 146.397 | 358.263 | 144.7% | 3,987,608 | 5,160,902 | 29.4% |
Accelerated growth in lines |
TIM Participações market continues expanding markedly. The Company ended the 3rd quarter 2004 with 5,160,902 customers, 29.4% more than in the same period of 2003, of which 74.2% are prepaid plan customers and 25.8% postpaid. The postpaid base grew by 6.4% when compared to the 3Q03. |
By quarter end, 25% of the total lines were GSM, representing 33.4% and 15.9% of the South and Northeast region customers, respectively. |
Net additions totaled 358,263 customers, 144.7% above the figure reached in 3Q03, represented solely by GSM lines. |
Total market penetration in the combined northeast and southern regions for the quarter was estimated at 25.2%, versus 23.1% in 2Q04, below the national average penetration of 32.4%. In terms of regional performance, TIM Participações confirmed the leadership both in the South and in the Northeast. In particular, in the South the penetration was estimated at 33.2% and the Company achieved an estimated market share of 50.2% while in the Northeast the penetration was 20.7% and the market share was 42.8%. |
GSM Overlay
Fast expansion of GSM Coverage |
The GSM network already covers 514 cities, meaning that the services are offered to 90% and 78% of the urban population in the South and Northeast regions, respectively. The cities covered by GSM have access to the GPRS, and, as an additional advantage the network has the EDGE technology in the whole Southern region and in part of the Northeast, enabling customers from all over Brazil to use data and multimedia. |
Thanks to the EDGE technology, the mobile office is becoming a reality, with several advantages to the customers, providing business mobility. Among the advantages are: faster access to corporate and personal e-mails; file download and upload in broadband; swift Internet navigation, remote video monitoring, remote access to corporate applications (SAP, Intranet etc.). Another advantage offered to TIM EDGE customers is that there is no need for obtaining an Internet provider, since TIM EDGE network connects the customer to the Internet by itself. |
TIM: the
first to offer Multimedia roaming |
TIM Participações is part of TIM group, the leading GSM cellular telecommunications operator in Brazil. Also, TIM is the first Brazilian cellular telecommunications operator to execute international GPRS/MMS/EDGE data and multimedia roaming agreements. |
All these characteristics were appreciated by the market: GSM has been chosen by 76% of the new customers (gross addition) in the South and by 59% in the Northeast. |
Operating Revenue
The gross service revenues were R$ 707.3 million, 21.8% above 3Q03. This increment is credited mainly to the 29.4% expansion in the lines base and the 97.4% growth in the value-added services (VAS) revenue. |
Gross handset revenues in the period were R$ 163.5 million, a 66.2% increase over 3Q03, resulting from a greater cellular market growth in 2004. This quarter, the sales efforts were focused on the Fathers Day (celebrated in August in Brazil). |
28.2% rise in gross revenues |
Thus, gross revenues amounted to R$ 870.8 million in the quarter, 28.2% above 3Q03. |
TIM Participações Average Revenue per User (ARPU) in the quarter was R$ 34.4, compared to R$ 37.0 registered in the 3Q03. The significant growth in the lines base, specially the +40% prepaid increase YoY, combined to the late Bill & Keep adoption in the Northeast and tax increase in some States of the Northeast, resulted in such decrease. The ARPU of the South Region was R$ 34.5, a decrease of 7.3% compared to the 3Q03, while in the Northeast it was R$ 34.4, 6.6% lower than in the 3Q03. |
Operating Costs and Expenses
The cost of services (including network and interconnection costs, before depreciation/ amortization and personnel) in the period amounted to R$ 115.0 million, almost stable YoY (R$112.6 million in the 3Q03), although the network and traffic expansion, thanks to the greater efficiency and the late introduction of the Bill & Keep in the Northeast. |
Strong expansion on handset sales |
The handset cost for the quarter was R$ 117.9 million, above the R$ 80.2 million registered in the 3Q03, because of the double volume sold (451.5 thousand handsets versus 217.3 thousand in the 3Q03). Great acceptance for GSM technology: 94% of handsets sold were GSM. |
With the wireless industry market growth, the Company focused its marketing efforts on expanding its base. Marketing campaigns, targeting mainly the Fathers Day holiday, included subsidies and the sale of handsets on credit, plus free minutes to calls between Company customers. |
In this scenario, selling expenses (before depreciation/amortization, bad debt and personnel) were R$ 108.1 million, 47.9% above the 3Q03, as a result of the gross lines addition in the period: 625,151 lines versus 367,186 lines in the 3Q03, a 70.3% increment. The marked growth in sales during the period increased basically selling expenses related to commissions and the FISTEL tax, charged on each new cell phone activation. |
Subscriber Acquisition Cost (SAC) in the 3Q04 was R$ 137.8, compared to R$ 106.1 in the 3Q03, reflecting a more competitive scenario, and the costs of migration from TDMA to GSM. In 2004, the Company enlarged its retention program, including the GSM migration incentives, which at the end of September amounted 239.4 thousands migrations. Consequently, the participation of the retention cost of clients in the SAC, increased from 20% in 3Q03 to approximately 25% in the 3Q04. |
General and Administrative (G&A) Expenses totaled R$ 34.3 million, versus R$ 29.9 million in the 3Q03. The increase in the quarter was mainly due to the extraordinary expenses related to the restructuring process. |
Personnel expenses amounted to R$ 27.6 million, in line with the level of the 3Q03. |
Bad debt expenses were R$ 15.0 million, a 32% decrease over the 3Q03, due to the reversal of R$ 8.0 million provisions, resulting from the recovery of receivables owed by others operators. |
EBITDA
24,7% growth YoY |
In the 3Q04, TIM Participações achieved an EBITDA earnings before interest, tax, depreciation and amortization of R$ 230.7 million, versus R$ 185.0 million in the 3Q03. The EBITDA margin was 35.6%, slightly higher than the 3Q03 margin of 35.3%, thanks to the efficiency achieved through innovation both in technology and internal processes. The EBITDA margin, net of handsets revenues and costs, was 44.4%, compared to 42.2% on the 3Q03 (+ 2.2 p.p.). |
Depreciation and Amortization
Depreciation and Amortization in the quarter was R$ 117.9 million, versus R$ 110.1 million in the 3Q03, a 7.1% increase originating from network expansion and technological innovation. |
EBIT
50,7% growth YoY |
The EBIT earnings before interest and tax was R$ 112.9 million, higher than the R$ 74.9 million registered in the 3Q03. |
Net Financial Revenue/Expense
The net financial revenue for the quarter was R$ 17.8 million, almost in the same level of the R$ 17.0 million in the 3Q03. |
Net Income
The consolidated net income was R$ 77.1 million, 36.8% above the 3Q03. |
Indebtedness
-84% YoY |
On September 30, 2004, our indebtedness was R$ 101.8 million, of which 60.8% consisted of short-term debts. The net cash flow at the end of the quarter was R$ 554.9 million. |
Investment
Investments in the 3Q04 were R$ 191.2 million, totaling R$ 367.0 million by late September/2004, which was mainly used for the GSM network deployment. |
This press release contains forward-looking statements and estimates. Such expectations are based on a series of assumptions, and subject to the risks and uncertainties inherent to forward-looking projections and/or estimates. The results may differ materially from the expectations expressed in the forward-looking statements or estimates if one or more of the assumptions and expectations prove to be incorrect or are not realized. |
List of Appendices
Appendix 1: Balance Sheet (BR GAAP)
Appendix 2: Statement of Income (BR GAAP) include note explaining reclassifications
Appendix 3: Operating Indicators South Region
Appendix 4: Operating Indicators Northeast Region
Appendix 5: Consolidated Operating Indicators TIM Participações
Appendix 6: Glossary
Appendix 1
Balance
Sheet (BR GAAP)
TIM Participações S.A.
CONSOLIDATED BALANCE SHEET IN THOUSANDS OF REAIS
DESCRIPTION | June 2004 | Sept 2004 | DESCRIPTION | June 2004 | Sept 2004 |
ASSETS | 3,147,411 | 3,230,879 | Liabilities and stockholders' equity | 3,147,411 | 3,230,879 |
CURRENT ASSETS | 1,499,859 | 1,524,847 | CURRENT LIABILITIES | 689.497 | 705.394 |
Cash and banks | 679.696 | 656.730 | Trade accounts payable | 40.967 | 7.383 |
Trade accounts receivable | 504.393 | 556.043 | Loans and financings | 84.436 | 61.853 |
Inventories | 47.890 | 48.761 | Suppliers | 383.864 | 432.084 |
Recoverable taxes | 218.177 | 214.571 | Salaries and social charges | 23.689 | 24.568 |
Others | 49.703 | 48.742 | Taxes and contribution payble | 121.130 | 139.293 |
Dividends and Interest on own capital | 16.584 | 16.239 | |||
NON CURRENT ASSETS | 269.440 | 244,953 | Othes | 18.828 | 23.974 |
PERMANENT ASSETS | 1,378,112 | 1,461,078 | NON CURRENT LIABILITIES | 146.812 | 116.437 |
Investments | 10.681 | 10.286 | |||
Property, plant and equipment | 1,367,431 | 1,450,792 | MINORITY INTEREST | 378.545 | 399.392 |
SHAREHOLDERS' IEQUITY | 1,932,557 | 2,009,655 | |||
Capital | 884.504 | 884.804 | |||
Capital reserve | 240.634 | 240.634 | |||
Revenues reserve | 471.550 | 471.550 | |||
Retained earnings | 211.878 | 211.878 | |||
Net profit | 123.990 | 201.088 | |||
The Complete Financial
Statements and the Notes thereto are available at:
www.timpartri.com.br
Appendix 2
Statement
of Income (BR GAAP)
TIM Participações S.A EBITDA
BRGAAP - (in R$ thousand) | ||||
YTD | YTD | |||
Description | 3Q03 | 3Q04 | Sept/03 | Sept/04 |
PRO-FORMA | PRO-FORMA | |||
Gross Revenues | 679.211 | 870.825 | 1,977,013 | 2,427,589 |
Telecommunications Services | 580.848 | 707.305 | 1,724,893 | 2,009,390 |
Monthly fee | 90.285 | 90.217 | 265.588 | 279.884 |
Usage | 272.476 | 369.729 | 809.203 | 1,019,007 |
Interconnection | 197.469 | 213.413 | 594.344 | 610.090 |
VAS | 15.384 | 30.361 | 38.696 | 77.477 |
Others | 5.235 | 3.586 | 17.061 | 22.933 |
Handset sales and other revenues | 98.363 | 163.520 | 252.120 | 418.199 |
Handset Sales | 98.363 | 163.520 | 252.120 | 418.199 |
Discounts and deductions | (154.914) | (222.845) | (440.225) | (610.660) |
Taxes and discounts on services | (132.345) | (168.505) | (383.182) | (479.261) |
Taxes and discounts on handset sales | (22.569) | (54.340) | (57.043) | (131.399) |
Net Revenues | 524.297 | 647.980 | 1,536,788 | 1,816,929 |
Services | 448.503 | 538.799 | 1,341,711 | 1,530,129 |
Handset and other revenues | 75.794 | 109.181 | 195.078 | 286.800 |
Operating Expenses | (339.274) | (417.247) | (961.147) | (1,199,211) |
Personal expenses | (26.724) | (27.619) | (81.584) | (84.608) |
Selling & marketing expenses | (73.047) | (108.068) | (210.416) | (295.969) |
Network & interconnection | (112.567) | (115.021) | (330.051) | (307.771) |
G&A | (29.952) | (34.274) | (78.093) | (83.512) |
COGS - Telecom products | (80.162) | (117.897) | (216.326) | (347.619) |
Bad Debt | (21.996) | (14.968) | (61.079) | (82.457) |
Other operational revenues (expenses) | 5.173 | 600 | 16.402 | 2.724 |
EBITDA | 185.023 | 230.734 | 575.641 | 617.718 |
EBITDA - Margin over total net revenues | 35.3% | 35.6% | 37.5% | 34.0% |
Depreciation | (84.093) | (85.549) | (252.688) | (254.269) |
Amortization | (26.034) | (32.314) | (77.246) | (92.274) |
EBIT | 74.896 | 112.871 | 245.707 | 271.175 |
EBIT - Margin over total net revenues | 14.3% | 17.4% | 16.0% | 14.9% |
Other non-operational revenues (expenses) | 3.195 | 550 | 1.313 | (4.193) |
Equity | (3.106) | (5.948) | ||
Net Financial Results | 17.041 | 17.823 | 42.076 | 49.315 |
Financial expenses | (54.577) | (15.441) | (136.351) | (47.063) |
Net currency exchange | (3.756) | (853) | (5.805) | (3.010) |
Financial income | 75.374 | 34.118 | 184.231 | 99.387 |
Net income before taxes and Minorities | 92.026 | 131.244 | 283.147 | 316.297 |
Interest on own capital reversion | 2.859 | 2.859 | ||
Income tax and social contribution | (21.815) | (34.895) | (66.357) | (68.634) |
Minority interest | (16.704) | (19.250) | (49.725) | (46.574) |
Net profit (loss) | 56.367 | 77.099 | 169.924 | 201.088 |
The Complete Financial
Statements and the Notes thereto are available at:
www.timpartri.com.br
Appendix 3
Operating
Indicators South Region
3Q03 | 3Q04 | Var. % | YTD | YTD | |
3Q04/03 | Sep/03 | Sep/04 | |||
Estimated Population in the Region (million) | 15.3 | 15.7 | 2.6% | 15.3 | 15.7 |
Municipalities Served | 256 | 279 | 9.0% | 256 | 279 |
Estimated Total Penetration | 22% | 33% | +11 p.p. | 22% | 33% |
Market Share | 57.6% | 50.2% | -7.4 p.p. | 57.6% | 50.2% |
Total Lines | 1,887,030 | 2,628,908 | 39.3% | 1,887,030 | 2,628,908 |
Prepaid | 1,341,604 | 2,008,556 | 49.7% | 1,341,604 | 2,008,556 |
Postpaid | 545,426 | 620,352 | 13.7% | 545,426 | 620,352 |
Gross Additions | 196.790 | 365.919 | 85.9% | 498.441 | 997.572 |
Net Additions | 75.349 | 211,115 | 180.2% | 163,370 | 573,024 |
Churn | 6.6% | 6.1% | -0.5 p.p. | 18.7% | 18.4% |
TOTAL ARPU | R$ 37.2 | R$ 34.5 | -7.3% | R$ 39.3 | R$ 36.0 |
TOTAL MOU | 90 | 82 | -9.0% | 95 | 86 |
Investment (R$ million) | 65 | 107 | 63.6% | 93 | 221 |
Employees | 976 | 1,059 | 8.5% | 976 | 1,059 |
Appendix 4
Operating
Indicators Northeast Region
3Q03 | 3Q04 | Var. % | YTD | YTD | |
3Q04/03 | Sep/03 | Sep/04 | |||
Estimated Population in the Region (million) | 28.1 | 28.6 | 1.6% | 28.1 | 28.6 |
Municipalities Served | 308 | 308 | 0.0% | 308 | 308 |
Estimated Total Penetration | 14% | 21% | + 7 p.p. | 14% | 21% |
Market Share | 52.3% | 42.8% | - 9.5 | 52.3% | 42.8% |
Total Lines | 2,100,578 | 2,531,994 | 20.5% | 2,100,578 | 2,531,994 |
Prepaid | 1,395,210 | 1,821,583 | 30.6% | 1,395,210 | 1,821,583 |
Postpaid | 705,368 | 710,411 | 0.7% | 705,368 | 710,411 |
Gross Additions | 170,396 | 259,232 | 52.1% | 443,624 | 659,363 |
Net Additions | 71,048 | 147,148 | 107.1% | 174,735 | 359,469 |
Churn | 4.8% | 4.6% | - 0.2 | 13.4% | 12.9% |
TOTAL ARPU | R$ 36.8 | R$ 34.4 | -6.6% | R$ 36.8 | R$ 33.5 |
TOTAL MOU | 108 | 98 | -9,3% | 106 | 97 |
Investment (million) | R$87 | R$84 | -3.2% | R$108 | R$146 |
Employees | 1,026 | 1,058 | 3.1% | 1,026 | 1,058 |
Appendix 5
Consolidated
Operating Indicators TIM Participações S.A.
3Q03 | 3Q04 | Var. % | Acum. | Acum. | |
3Q04/03 | Sep/03 | Sep/04 | |||
Estimated Population in the Region (million) | 43.4 | 44.3 | 2.0% | 43.4 | 44.3 |
Municipalities Served | 564 | 587 | 4.1% | 564 | 587 |
Estimated Total Penetration | 16.1% | 25.2% | +9.1 p.p. | 16.1% | 25.2% |
Market Share | 55.0% | 46.3% | -8.7 p.p. | 55.0% | 46.3% |
Total Lines | 3,987,608 | 5,160,902 | 29.4% | 3,987,608 | 5,160,902 |
Prepaid | 2,736,814 | 3,830,139 | 39.9% | 2,736,814 | 3,830,139 |
Postpaid | 1,250,794 | 1,330,763 | 6.4% | 1,250,794 | 1,330,763 |
Gross Additions | 367.186 | 625.151 | 70.3% | 942.065 | 1,656,935 |
Net Additions | 146.397 | 358.263 | 144.7% | 338.105 | 932.493 |
Churn | 5.6% | 5.4% | - 0.2 p.p. | 15.9% | 15.6% |
TOTAL ARPU | R$37.0 | R$34.4 | -7.0% | R$38.0 | R$34.8 |
TOTAL MOU | 100 | 90 | -9.7% | 101 | 91 |
Investment (R$ million) | 152 | 191 | 25.5% | 201 | 367 |
Employees | 2.002 | 2.117 | 5.7% | 2.002 | 2.117 |
Appendix 6
Glossary
Financial Terms EBIT = Earnings before interest and tax EBITDA = Earnings before interest, tax, depreciation and amortization EBITDA Margin = EBITDA/ Net Operating Revenue CAPEX (capital expenditure) capital investment Subsidy = (net revenue from goods cost of sales + vendors discounts) / gross additions Net debt = gross debt cash PL Shareholders Equity Technology and Services TDMA = Time Division Multiple Access GSM = Global System for Mobile Communications A system storing and coding cell phone data, such as user calls and data, enabling a user to be recognized anywhere in the country by the GSM network. The GSM is now the standard most used in the world. EDGE = Enhanced Data rates for Global Evolution A technique developed to increase the speed of data transmission via cell phone, creating a real broadband for handsets with the GSM technology. The first EDGE handsets available offer speeds that can reach up to 200 Kbps, depending on the handset model. SMS = Short Message Service ability to send and receive alphanumerical messages. |
Operating indicators
Customers = Number of wireless lines in service Gross additions = Total of customers acquired in the period Net additions = Gross Additions number of customers disconnected Market share = Companys total number of customers / number of customers in its operating area Marginal Market share = participation of estimated net additions in the operating area. Market penetration = Companys total number of customers + estimated number of customers of competitors / each 100 inhabitants in the Companys operating area Churn rate = number of customers disconnected in the period ARPU = Average Revenue per User net monthly revenue per customers in the period Blended ARPU = ARPU of the total customer base (contract + prepaid) Contract ARPU = ARPU of contract service customers Prepaid ARPU = ARPU of prepaid service customers MOU = minutes of use monthly average. in minutes of traffic per customer = (Total number of outgoing minutes + incoming minutes) / monthly average of customers in the period Contract MOU = MOU of contract service customers Prepaid MOU = MOU of prepaid service customers SAC = Customer acquisition cost = (marketing expenses + commission + Fistel + comodato + costs of retention) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
TELE CELULAR SUL PARTICIPACTES, S.A. | ||
Date: October 27, 2004 | By: | /s/ Paulo Roberto Cruz Cozza |
Name: Paulo Roberto Cruz Cozza | ||
Title: Chief Financial Officer |