2024-02-08 07:51:10 ET
TIM S.A. (TIMB)
Q4 2023 Earnings Conference Call
February 7, 2024 08:00 AM ET
Company Participants
Vicente Ferreira - Head, Investor Relations
Alberto Griselli - Chief Executive Officer
Andrea Viegas - Chief Financial Officer
Conference Call Participants
Marcelo Santos - JPMorgan
Leonardo Olmos - UBS
Frederico Mendes - Bank of America
Vitor Tomita - Goldman Sachs
Marco Nardini - XP Inc.
Phani Kanumuri - HSBC
David Lopez - New Street Research
Philip Chang - Santander
Presentation
Operator
Hello, everyone and welcome to TSA's Earnings Conference for the Fourth Quarter and Full Year 2023. Thank you for joining us. I'm Vicente Ferreira, Head of Investor Relations. Today we'll share our highlights on video and then we'll begin our live Q&A session with our CEO, Alberto Griselli; and our CFO, Andrea Viegas.
Before we can discuss our results, annual guidance, I remind you that management may make and this presentation may contain forward-looking statements. So please refer to the disclaimer on the screen which will also be available in our earnings materials and our investor relation website.
With that we move to our results.
Alberto Griselli
Hi to everyone. I'm Alberto Griselli, CEO of TIM in Brazil. I'm very pleased that 2023 was an outstanding year with great achievements and record high results. As we explained during our Investor Day in November, the Brazilian mobile market is healthier than ever, supporting a more for more strategy. New market dynamics and favorable demand are driving our results to improve across the board. Our service revenues grew in 2023 10.7% year-on-year, totalling more than BRL23 billion. With costs under control, our EBITDA grew more than 14% to reach the highest number in our history, BRL11.7 billion. In this context, our 2023 margin expanded to almost 49%, the highest among the large telco in Brazil and Latin America.
Another metric that measures our efficiency in allocating resources is the CapEx to sale ratio. We closed 2023 with the best result ever, just below 19%, contributing to our operating free cash flow growing more than 58% year-on-year, summing to BRL4.2 billion. To complete this small summary, our net income rose to BRL2.7 billion after expanding more than 50% year-over-year. These results explain why we were confident in November in raising our shareholder remuneration target to BRL2.9 billion. To generate such strong numbers, we are developing the best value proposition based on the BBB strategy, Best Service, Best Network and Best Offer.
During 2023 we worked extensively to deliver improvements in customer experience. We seek the best service by digitalizing the interaction to accelerate and improve demand resolution. And we are best-in-class in all resolution rankings of Brazil. At the same time, if a human attendant services a client, the satisfaction with this interaction must be best-in-class and we can deliver that. Call center [MPS] (ph) improved more than 40% in the fourth quarter. Meanwhile, we are consolidating our leadership in network coverage and quality in Brazil. We have the largest 4G and 5G coverage, being the only operator to cover all the cities of Brazil. Our network was also the most awarded among the Brazilian operators....
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TIM S.A. (TIMB) Q4 2023 Earnings Call Transcript