TIM S.A. (NYSE:TIMB) Q2 2024 Earnings Conference Call July 31, 2024 9:00 AM ET
Company Participants
Vincent Ferreira - Head, Investor Relations
Alberto Griselli - Chief Executive Officer
Andrea Viegas - Chief Financial Officer
Conference Call Participants
Bernardo Guzman - XP
Marcelo Santos - J.P. Morgan
Vitor Tomita - Goldman Sachs
Gustavo Farias - UBS
Daniel Federle - Bradesco BBI
Felipe Cheng - Santander
Vincent Ferreira
Hello, everyone and welcome to TSA’s Earnings Conference for the Second 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, talking from our headquarters in Rio de Janeiro.
I'm pleased to share the highlights of our solid second quarter 2024 results. Despite some macro challenges, we are taking advantage of favorable market dynamics to develop further our 3Bs approach and deliver robust results across the board.
In the second quarter, we maintained the pace of growing our service revenue high single digit year-over-year. Our EBITDA grew above our revenues, sustaining margin expansion despite a tougher comparative basis. Our proxy for operating free cash flow reached a record high for the second quarter, growing approximately more than 20% year-over-year.
These solid financial results are accompanied by improvements in our services, innovation in our offerings, and consistent infrastructure development. Our results are driven mainly by mobile services with revenues growing by 7.3% compared to second quarter 2023. Consequently, ARPU is expanded by 6.8% through more-for-more initiatives and migration strategy.
Our customer base profile continues to improve with postpaid net addition accelerating to solid levels. In second quarter 2024, we added 458,000 clients. We combine initiative to reduce churn and expand migration from prepaid to postpaid to support this performance. Behind these numbers is a sharp execution of our 3B strategy. Building the best offer in the market requires an innovative mind set, bringing novelties valued by the customers at the right price.