TIM Participacoes S.A. Announces Its Consolidated Results for the Second Quarter of 2006

Monday, July 24, 2006 10:52 AM

RIO DE JANEIRO, Brazil, July 24 /PRNewswire-FirstCall/ -- TIM Participacoes S.A. (NYSE: TSU) (BOVESPA: TCSL3 and TCSL4), the holding company of TIM Celular S.A. and TIM Nordeste S.A., announces its results for the second quarter of 2006 (2Q06). TIM Participacoes S.A. provides mobile telecommunications services through its mobile operators in Brazil and is the largest GSM operator in the country in terms of clients. The following financial and operational information, except where otherwise indicated, is presented on a consolidated basis and in Brazilian Reais, pursuant to the terms of Brazilian Corporate Law. The comparisons contained herein refer to the second quarter of 2005 (2Q05), except when otherwise indicated.

Financial and Operational Highlights

* The Company added 1.3 million new clients to its subscriber base, or 56.1% of net market additions, achieving market share of 24.3%.

* The client base reached 22.3 million users at the end of the 2Q06, 33.3% up from 2Q05.

* By the end of the 2Q06, 87.1% of customers were using GSM technology.

* Leader in the GSM market in Brazil.

* First and only operator to offer GSM international roaming for the prepaid segment (Voice and VAS).

* ARPU in 2Q06 was R$ 30.2, compared to R$ 30.0 in 1Q06, reversing for the first time the QoQ seasonal reduction trend.

* Substantial expansion in net service revenues, which climbed by 20.0% over 2Q05 to R$2.0 billion.

* Gross VAS (Value Added Service) revenue totaled R$ 237.4 million, up 62.0% from the same period the previous year, representing 8.9% of gross service revenues.

* Profitable growth: EBITDA of R$500.0 million, 73.4% higher than in 2Q05, and EBITDA margin of 21.5%, a 7.6 p.p. improvement when compared to 2Q05.

* Net loss of 25.3%, down YoY reflecting the Company's improved operating result.

* The mergers of TIM SUL with TIM CELULAR and TIM NORDESTE with MAXITEL were completed on June 30, 2006.

For the full release, please access the Company's website: http://www.timpartri.com.br .

    2Q06 Results Conference Call in English
    July 24, 2006
    12:30 p.m. (Brasilia time)
    11:30 (U.S. EDT)

SOURCE TIM Participacoes S.A.

(Source: PR Newswire )

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