TIM S.A. (NYSE:TIMB) Q1 2024 Earnings Conference Call May 7, 2024 8:30 AM ET
Company Participants
Vincent Ferreira - Head, Investor Relations
Alberto Griselli - Chief Executive Officer
Andrea Viegas - Chief Financial Officer
Conference Call Participants
Marcelo Santos - JPMorgan
Marco Nardini - XP
Andrea Salis - UBS
Vitor Tomita - Goldman Sachs
Carlos Sequeira - BTG Pactual
Gabriel Vaz de Lima - Morgan Stanley
Felipe Cheng - Santander
Vincent Ferreira
Hello, everyone and welcome to TSA’s Earnings Conference for the First Quarter of 2024. Thank you for joining us. I am Vincent Ferreira, Head of Investor Relations. Today, we will share our highlights on video and then begin our live Q&A session with our CEO, Alberto Griselli; and our CFO, Andrea Viegas.
Before we discuss our results, I remind you that management may make forward-looking statements and this presentation may contain them. Please refer to the disclaimer on the screen, which will also be available in our earnings materials and in our Investor Relations website.
With that, we move to our results.
Alberto Griselli
Hello to everyone. I am Alberto Griselli, CEO of TIM Brazil. I am very satisfied that we started 2024 at a solid pace. We are reaping the benefits of a well-designed plan and a sharp execution. We continue to see a healthy mobile market supporting a more-for-more strategy. We are taking advantage of favorable market dynamics to develop our 3Bs approach further and deliver solid results across the board.
We have a solid above-inflation expansion in service revenues growing above 7% year-on-year. With costs under control, our EBITDA grew double-digit and the margin expanded by more than 100 basis points. Our proxy for operating free cash flow reached a record high for first quarter, growing approximately 60% year-over-year. These solid financial results are accompanied by consistent improvement in our services, offering innovation and a consistent development of our infrastructure. 5G rollout continues to be the main focus of our network strategy.
As I mentioned, our best service, best network and best offer are at the core of our strategy and serve as the foundation for building the best value proposition. Consequently, we continue to work on these three fronts. Still, we have also intensified the activities related to convincing clients and potential clients of the transformations we are implementing at the company.
During the first quarter, in the best service category, we consolidated our efforts to improve customers’ experience with several achievements as, for example, Efficiency Award from the Consumer Protection Agency of Sao Paulo. Reminding you all that is now almost 1 year that TIM is the only company in Brazil to have received such important recognition. In best network, we expanded our 5G coverage, increasing the number of cities and more importantly, broadening the coverage inside the cities for a better experience.