Company Reports

TIM’s emphasis on pricing discipline over customer additions continued to produce slightly slower growth than its two primary rivals while delivering solid profitability during the second quarter. We expect the firm will struggle to maintain share versus America Movil and Vivo, but we also believe the competitive environment in Brazil will improve. Our fair value estimate remains $19.

TIM, 67%-owned by Telecom Italia, is the smallest of the three major wireless carriers in Brazil. The removal of Oi from the market in 2022 has greatly improved the competitive environment. While we expect TIM will generate steady results in the coming years, we believe the firm’s modest fixed-line footprint leaves it at a disadvantage to both its larger competitors.

TIM posted modestly disappointing first-quarter results, but we don’t see any reason to change our outlook for the year or our $21 fair value estimate.

TIM, 67%-owned by Telecom Italia, is the smallest of the three major wireless carriers in Brazil, claiming about 24% market share based on customers served. The removal of Oi from the market in 2022 has greatly improved the competitive environment. While we expect TIM will generate steady results in the coming years, we believe the firm’s modest fixed-line footprint leaves it at a disadvantage to both its larger competitors.

TIM’s fourth quarter looked similar to recent results, with strong pricing discipline driving relatively weak customer metrics but solid wireless revenue growth and margin expansion. We continue to be impressed with profitability improvements, both in terms of margins and declining capital investment needs. We are increasing our fair value estimate to $21 from $19 to reflect these gains.

TIM, 67%-owned by Telecom Italia, is the smallest of the three remaining major wireless carriers in Brazil, claiming about 24% market share based on customers served. The removal of Oi from the market in 2022 has greatly improved the competitive environment, allowing TIM and its rivals to increase prices and improve profitability. While we expect TIM will generate steady results in the coming years, we believe the firm’s modest fixed-line footprint leaves it at a disadvantage to both its larger competitors.

TIM posted another very strong quarter and presented no major surprises at an analyst day held in conjunction with the earnings release. We are increasing our fair value estimate slightly to $19 from $18 to account for higher assumed margins over the long term.

TIM, 67%-owned by Telecom Italia, is the smallest of the three remaining major wireless carriers in Brazil, claiming about 24% market share based on customers served. The removal of Oi from the market in 2022 has greatly improved the competitive environment, allowing TIM and its rivals to increase prices and improve profitability. While we expect TIM will generate steady results in the coming years, we believe the firm’s modest fixed-line footprint leaves it at a disadvantage to both its larger competitors.

TIM posted solid second-quarter results, returning to postpaid wireless customer growth for the first time since the Oi acquisition closed last year, while still pushing revenue per customer and profitability sharply higher. Our fair value estimate remains $18 per ADR, and we believe the shares are modestly undervalued. We continue to prefer Vivo over TIM for exposure to the Brazilian telecom market.

TIM, 67%-owned by Telecom Italia, is the smallest of the three remaining major wireless carriers in Brazil, claiming about 24% market share based on customers served. The removal of Oi from the market in 2022 has greatly improved the competitive environment, allowing TIM and its rivals to increase prices and improve profitability. While we expect TIM will generate steady results in the coming years, we believe the firm’s modest fixed-line footprint leaves it at a disadvantage to both its larger competitors.

The Oi asset acquisition continues to create comparison headaches for TIM and its peers, but we believe TIM remains the weakest performer in the Brazilian wireless industry. We are increasing our fair value estimate to $18 per ADR from $16, reflecting the strengthening real but also on solid pricing discipline at TIM. We believe the shares are modestly undervalued, but we still prefer Vivo.

TIM, 67%-owned by Telecom Italia, is one of the largest wireless carriers in Brazil, claiming about 20% market share based on customers served. With the planned Oi transaction nearing completion, TIM will carve that firm up with its two primary rivals, America Movil and Telefonica Brazil, pushing TIM’s market share up to about 27%. In addition to adding scale, consolidating the Brazilian wireless industry should improve the competitive dynamics in what has been a very difficult environment. While we expect TIM will generate steady results in the coming years, we believe the firm’s modest fixed-line footprint leaves it at a disadvantage to both its larger competitors.

Cleanup of the Oi customer base clouded TIM's fourth quarter, but results were lackluster in our view. After TIM, America Movil, and Vivo carved up Oi last year, the firms found that many of the acquired customers were inactive. TIM finished its review of Oi wireless customers during the quarter, resulting in the elimination of 5 million customers—about a third of those acquired—from the base. The three firms are seeking compensation from Oi for the misrepresentation of accounts, but this development doesn't materially change our view of the Brazilian wireless industry. The industry is in much better shape today with three major players instead of four and while there are fewer Oi customers than thought, those customers also each generate more revenue than previously represented. Our TIM fair value estimate remains $16 per ADR. We believe the shares are modestly undervalued, but we still prefer Vivo.

TIM’s business performed well overall during the quarter, in our view, and our fair value estimate remains $16 per ADR. We believe the shares are modestly undervalued, but we prefer Vivo, which we believe holds a stronger competitive position and trades at a larger discount to our valuation.

TIM, 67%-owned by Telecom Italia, is one of the largest wireless carriers in Brazil, claiming about 20% market share based on customers served. With the planned Oi transaction nearing completion, TIM will carve that firm up with its two primary rivals, America Movil and Telefonica Brazil, pushing TIM’s market share up to about 27%. In addition to adding scale, consolidating the Brazilian wireless industry should improve the competitive dynamics in what has been a very difficult environment. While we expect TIM will generate steady results in the coming years, we believe the firm’s modest fixed-line footprint leaves it at a disadvantage to both its larger competitors.

TIM, 67%-owned by Telecom Italia, is one of the largest wireless carriers in Brazil, claiming about 20% market share based on customers served. With the planned Oi transaction nearing completion, TIM will carve that firm up with its two primary rivals, America Movil and Telefonica Brazil, pushing TIM’s market share up to about 27%. In addition to adding scale, consolidating the Brazilian wireless industry should improve the competitive dynamics in what has been a very difficult environment. While we expect TIM will generate steady results in the coming years, we believe the firm’s modest fixed-line footprint leaves it at a disadvantage to both its larger competitors.

TIM, 67%-owned by Telecom Italia, is one of the largest wireless carriers in Brazil, claiming about 20% market share based on customers served. With the planned Oi transaction nearing completion, TIM will carve that firm up with its two primary rivals, America Movil and Telefonica Brazil, pushing TIM’s market share up to about 27%. In addition to adding scale, consolidating the Brazilian wireless industry should improve the competitive dynamics in what has been a very difficult environment. While we expect TIM will generate steady results in the coming years, we believe the firm’s modest fixed-line footprint leaves it at a disadvantage to both its larger competitors.

TIM’s efforts to raise wireless prices produced strong results during the second quarter, while the Oi transaction also lifted revenue sharply. Reported revenue increased 22% year over year, or 13% excluding Oi’s contribution, continuing the steady acceleration seen over the past several quarters. We still view TIM as competitively disadvantaged relative to rivals like America Movil, but the structure of the Brazilian telecom market is now much improved, with three primary wireless carriers. Our TIM fair value estimate remains $16 per ADR.

TIM again delivered solid postpaid customer growth during the first quarter, building on the momentum gained in late 2021. With the Oi acquisition closed, management provided medium-term financial expectations, calling for high-single-digit revenue growth and steady margin improvement through 2027. We believe these figures are reasonable. We’re leaving our fair value estimate at $16 per ADR.

TIM, 67%-owned by Telecom Italia, is one of the largest wireless carriers in Brazil, claiming about 20% market share based on customers served. With the planned Oi transaction nearing completion, TIM will carve that firm up with its two primary rivals, America Movil and Telefonica Brazil, pushing TIM’s market share up to about 27%. In addition to adding scale, consolidating the Brazilian wireless industry should improve the competitive dynamics in what has been a very difficult environment. While we expect TIM will generate steady results in the coming years, we believe the firm’s modest fixed-line footprint leaves it at a disadvantage to both its larger competitors.