Q2 2021 Tim SA Earnings Call
Coming back on this too is the speed of our business.
In the second quarter, we continued to present, a solid recovery with our revenue lines, improving on a year over year basis, and a quarter over quarter.
For the telecom sector the first wave.
1 moment of the pandemic.
Back an easy comparison base doesn't explain all the evolution, we see in the business.
That is why we are very confident in delivering the company's targets.
Second up expectations are high non stop.
Only due to the recovery.
This process, but also because of the spectrum auction and the closing of the deal with Huawei.
Without further delay let.
Moving to the results.
Once again the quarter was marked by at the mono bore execution, we accelerated our recovery.
Was the growing solidly in all major lines and more rapidly than our recent results.
We closed the quarter with service revenues growing near 9% year over year EBITDA coming in very solid debt close to 6% versus last year.
We're parsing yearly growth for the past 20 quarters.
Not all businesses reached such consistent and sound performance.
In July we announced another adventure of our customer platform strategy. This time in the AD Tech arena with the.
<unk> group.
This partnership led to a new control offering mobile so we took the opportunity to refresh the entire mobile portfolio in parallel we also updated Tim lives portfolio.
In the second quarter, we continue on with the financing plan for the acquisition.
Sean and issued the first sustainability linked bond in <unk> history.
Issued $1.6 billion Reais in debentures attached to ESG targets, the loggers in Brazil, so far.
By achieving social and environmental goals will review.
So funding, while producing positive impact for society.
Still on this front, we improved our disclosure of information following the release of our annual ESG report and a brand new section on our website.
Website.
We focused our immune.
Environmental actions on reaching our long term targets as being 15 renewable energy plants and are reaching 1 <unk> 7000 bio sites.
On the social front, we also had a great quarter I was personally engaged in launching.
The partnership with the ammonia is positive initiatives together with non other large companies to foster carrier development and womens assets to the labor market. We also added to the LGBT high gloss rice firm.
And finally, we received.
Anqing, the Venetian per hour work, winning the <unk> award for diversity impact.
Detailing our revenue acceleration, we saw positive contribution coming from mobile and fixed services.
With all major online posting better growth rates.
Excellent quarter.
Mobile service revenue accelerated to grow 8.5% year over year with the postpaid segment also speeding GAAP reached almost 9%.
While prepaid expanded more than 5% reverse during the past quarter.
Contractions.
In parallel.
<unk> services also posted a solid evolution.
11% with a some share contribution from Tim live expanding more than 20% year over year.
The critical element per hour Mubarak.
Then and meet the second wave of the pandemic.
The ability to execute the volume 2 vendor strategy.
Despite having still some store close across the country impacting our commercial activity, our mobile heartbeat grew more than 10% year over.
Colby on 1 or 2% versus the first quarter.
Its worth nothing that our ASP is growing for 22 consecutive quarters.
Since March we have seen an improvement in their charged level on.
This trend was confirmed in.
Second quarter, Andrew prepaid output up more than 11% year on year with debt quarter over quarter expansion as well.
Postpaid ARPA also increased by more than 5% year over year backed by positive performance in inter segment.
Migrations.
The quest to differentiate our offers by moving away from the price per <unk> is clearly paying off.
As I mentioned earlier, we refresh our mobile portfolio, adding on limited music with these or go to Iowa to our main prepaid.
Prepaid proposition.
In pure postpaid the entertainment tab Grill, it's option with the addition of HBO Max.
While in controller offers we added the education content from the <unk> platform under our epic partnership.
Going.
Going into more details of this new venture.
We are joining forces with the largest indication player in Brazil, the Covenant group.
Accelerate the mobile fees amply platform in.
Exchange for the usage of our mobile operator assets, Tim will be renovated in the form.
Cramming you send the equity up to Tuesday per cent of bumpy catheter with these we expect to accelerate SKU that intake creating value for both companies.
Gardening financial services will continue to accelerate every month the number of additional Tim clients to open.
And use a bank account that <unk>.
Generating new revenues and improving the lifetime value of the customers.
With that we are eating the targets for equity and book an additional stake in the second quarter, which bring us to a total of approximately $2.9% of.
<unk> capital.
Our mobile advertising project is maturing day by day.
We keep growing our audience with more than 19 million op seen press we.
We developed and insights platform respecting all the data privacy requirements.
We are developing new channels, such as Tim farm net extra seats games, we've had and the news we did do a content plus hedged.
First results from the <unk> platform are coming out.
Campaigns are reaching millions of people we are doing.
Large scale service rewarding user for their engagement we've had.
Brick by brick we're building a new revenue stream.
Completing the discussion around the revenues drivers, let's move to fix establishes.
Specifically, Tim live operations.
The main drivers for the double digit revenue growth, we see every quarter in the fixed broadband continued to be our book and customer base uplift.
In the second quarter blended ASP was up by more than 8% with FTP H output, reaching close to 1.
The 10 <unk> per connection.
Our customer base continues to evolve.
<unk> speeds.
The new portfolio of accounts with 506 hundred megabit per second speeds and more OTT contents.
<unk> coverage also expanded reach.
<unk> hundred 3 dot tape media on homes passed.
A quick update on the fiber could be.
In June we got the approval from cabinet and now we are waiting for Anapest constant.
Closing is expected for September October and were planning a smooth transition.
<unk> without disruption on <unk> rollout.
We are pleased with the arrival of IHS as a partner in the fabric and wished to build great things with them.
Maintaining our discussion on infrastructure development.
I would like to remark that it was not only debt.
Broadband coverage debt grew solidly.
Mobile coverage also expanded summary.
2% more cities, we're covered for G and 20% more in for dark fiber.
We are also preparing our network to receive oil customers.
Must.
On the inside modernization are accelerating for this part gross.
Transport network keeps growing with more than 1000 cities connected with fiber.
Consequently, consequentially more kilometers being laid out.
This solid distribution.
<unk> is that being gas from PC based our stock commitments.
The network sharing agreement with vivo continues to evolve now all 3 fronts are showing progress on.
Bind coverage expansion went above 250, seaters single grid trials are being run.
<unk> 1 <unk> shop test are underway, our commitment to efficiency is a driver for this project and many others.
Talking about efficiency.
This quarter. It is crucial to go into some details of our Opex dynamics.
1 is to clarify any niche interpretations.
Our Opex went up 15% year on year, but this is basically due to the return on variable costs and expenses, reducing debt due to the first wave of pandemic and other volume related impacts.
I wanted to confirm these understanding we can compare this quarter against the second quarter of 2019, and we get a flagged by the industry wide versus the first quarter of 2021, we posted a slight decline of zero about 6%.
It.
To see our Opex is still under control.
Digitalization efforts continue to play an essential role in things efficiency.
The program and we have robust improvements in all leading indicators.
EBIT in payment digital care index is sales.
The lion's share with charges keep growing in adoption.
Despite this specific situation with Opex EBITDA growth also accelerated to 5.9% year over year summing to book 1 billion Reais.
Margin should close to 40.
48%.
This performance.
Net income to grow at both $680 million, representing a 2 and balance the fold increase.
Our investments reached 900 million reais and growth of more than 50% year on year.
In this context operating free cash flow for the first 6 months of the year grew more than 50%, surpassing 1 billion Reais, which drove our net debt down 27% and the cash position on 701 billion Reais.
It is worth mentioning our finisher financings planned for the year acquisition is underway and going smoothly.
Besides the debenture issuance, we took 1 look on <unk> in bladder our loans and we also have the cash proceeds from the fiber could deal.
Compared to take additional debt lines for approximately 1 billion reais in the second line.
Closing my comments I want to remark on the sound results, we've been delivering any debt very complex environment continue.
Confirming the company's solid fundamentals and.
Our positive momentum net summarized in the first half.
We posted a 6% service revenue increased while expanding EBITDA by more than 5%.
Customer platform revenues summit 46 million Reais and considering the new partnerships we.
We have a clear path to reach our year end goal of 100 million a year ago. Those initiatives were only a Powerpoint chart. However, today, we are proving we can create value with them.
On the M&A front, we are executing well, what we said our sense to do.
As I said at the beginning on my speech, we are more optimistic about the future.
We are confident the deal will be approved.
However, we always knew this is a complex transaction that would require much attention from the regulators.
Bottom line.
On debt.
It has happened so far is not a surprise we are what do we then on filing cabinet on saying their requests and clarifying our debt business that site.
Another good news is related to the spectrum auction. The process is moving forward. So we should it happen with.
Between September and October the essence of an infrastructure focus actually is being confirmed.
Before I conclude my presentation I would like to give a special thanks to our non collapses on my friends at <unk> our CFO.
By the end of August it will be returning.
Athena is starting a new career path.
I personally was delighted to work with add on for the past 5 plus years.
As accomplished many things and for debt, Tim, Brazil, and I will always be grateful.
I wish him all the best Bob.
Towards the seat count on aim to complete the transition in this last weeks.
Thank you.
I'll now open the floor for questions. Please operator.
Thank.
Mr. Peter now we will begin the Q&A session.
First we will take questions from analysts followed by general public both in English. If you are listening through webcast youre questions can be sent by check.
We ask each participant to restrict himself.
2 questions at a time to ask a question. Please press tire 1 and to remove the question from the list Press Star 2.
Our first question comes from Marcellus centers with J P. Morgan. Please Mr centers you made.
Hi, good.
Morning, Thanks for taking my question can you hear me well.
That's it for me.
Thank you.
I would like to ask a bit about Tim life. So you had a slowdown in ads this quarter I understand that you're adding a lot of fiber to the home, but you're losing a fiber to the curb so could you. Please comment.
Comment on the outlook for this and the second question also on broadband how do you see the outlook for our Brazilian fiber broadband given that you have many players that are coming to the market that are creating infrastructure companies and have aggressive plans of fiber deployment do you think there'll be space for everybody how do.
Do you think there'll be overlapping competition, how do you see this outlook. Thank you.
Hey.
Thank you Marcello, let's start from the second question on that is more related to the outlook.
On the ultra broadband market.
Yes, it's true that we have a lot of players that in this moment.
We're fighting to find some rooms for a possible day bed development, but we have to try to understand which are the real capabilities of all of the different players in this market because if you look at that the everybody want to compete on F. D. P. H is the key element for this competition so.
Or their technologists are less competitive compared to that.
Part of the extra coverage in EF Dth of some of these players are unable to reach it.
I spit the services what Tim in that for example is not for everybody to be able to supply a Saturday set 1.
Oh, 2 gigabit per second so I'm very happy to announce that the 2.
Friday 5 better on the market, we've been able to compete as saying this market we're going to launch by the end of October our 2 new offerings at 1 and 2 gigabit per second it would be clarify who is really able to stay in this.
<unk> debt with a network that is able to manage this kind of speed.
Second it's clear that debt the ft always on the second question I'm, sorry, It's a second point related to the second question. It's clear that Brazil is a continental as I'm used to see every time on that.
Michael there are rooms to have more than 1 player.
More than 1 players to cover the different state it's clear that it's really important to understand where it makes sense to go and compete because theres no.
No place in the World, where you can have a more than 2 or 3 player.
So we're able to make this business a M.
Tim.
Feasible business investing on M. D ph I think that there would be a natural and natural process in terms of competition, where someone will move from S. Log on to a reality, so I think that Ah I.
We're really kudos to see what will happen in the following months related to these items, but again I'm quite.
Confident that our strategy that is based on a real label network with the support of a chess will like will allow us to continue to compete in the day.
From that and again, let's see very well the evolution. There are some players more leased that day. They want to really complete compete debt to grow to growth. They are going to lose some of them are.
These color advantages that are related to the sides of the company. So again, let's see.
I'm being that we have the possibility to further increase our development.
Coming back to the first question that you related to our speed does is through debt. We have is a slightly slowed down in the second quarter. This is mainly related to the F. D. C. Just to clarify when we discuss.
And let them live usually we look at our revenues as an overall if I should try to compare Tim live as we discussed over the player we should divide our revenues and our net debts in EF DTC and that's D ph and if you look at debt Dth F. Dth continues to grow for more than 40 per cent.
About area why Saudi F. Dth continues to grow more than 40 per cent year over year, while on what is happening is that F. D. D. C is slowing down and that we are in the negative trend in terms of revenues back on these area jointly with IHS. We are working also on the possibility of an upgrade.
On the of the existing F D C with Dth, our expectation for the second half is that perhaps our revenue would be slightly below 20 per cent for.
For liver, because we were lab.
We will continue to have a decrease of ft ft D C revenues.
Any piece of ft th, but as a math, we would be back in the first quarter on the next year, where they grow that will be closer to 20 per cent because MTT C. We continue to reduce on the contribution will be lower and lower and lower.
But the non Amboseli decision about bad debt can give a different day light on.
Total number of the second quarter, a better place.
Yes, Sir Thank you Pedro Hi, Marcelo just on a few additional points are in terms of our overall per forma.
Net.
On the river access.
And when it comes to the F. T. P. C that is suffering more in terms of a churn rate over the last month. So we are a structure on mover decided to start an overlay in Rio de Janeiro on some Paolo brownfield overly we are.
On a pretty well advanced in Rio.
These are net of where we're already seeing.
On an improving performance in terms on reducing churn and that we started also in some part of this year and so basically we are putting an overlay on F. D. T. H are on top of our F. T. P C.
On to locking the our customer base.
And the last point to mention is debt that we are.
We made the price adjustments in the second quarter this ever as a specific effect on the churn rate of this quarter that he said are not going to repeat our index.
In the next quarters at least at the same attention.
Great. Thank you very much.
No.
Our next question comes from fragile main dish with B O S. A.
Mr. Mendes go ahead.
Good morning, everyone and thanks for the call I have 2 questions as well I mean, the first 1 is strong performance of the mobile service revenue you Mitchell at Upselling, which is planned for the.
So just on I get a little bit more visibility, where this mainly has.
It looks like it's not as it was in the vast from prepaid to hybrid. So just wonder if you believe the mainly on the beautiful space and where you see more opportunities to do for the next quarters.
My first question and then my second question on discussion on platform.
Rule is to at an early stage, but this quarter had reported significant growth almost a redo a re ice. So just trying to understand how cold day a few above. These this is line of growth and if the margins are on these on this platform. It is similar to what you'll be reporting for the consolidated company or ordinary slightly different.
Thank you.
Thank you Fred that about the the first question that is related to the upgrade.
We are proceeding with exactly the same strategy that we are declaring since a lot of time, if you remember I can check or traffic, we show I think 3 or 4 years ago.
Where we're showing that our idea was to start to migrate prepaid customers from prepaid to control and then progressively move from Controle to postpaid it's clear that day at the beginning the volume of gas from air on the prepaid the so-called Zweep prepaid swimming pool was so.
So big debt. It was possible to are focused mainly on the integration from prepaid to controle.
Then the fact that we have to control also theyre ranked ability on.
The migration because you have to remember that we have to continue to create that generate value in these activity and not just debt, forcing some numbers.
We are more focusing on the migration from Controle to postpaid. It doesn't mean that we are not continuing to migrate customers from prepaid to controle, but we're doing that with much more attention on looking at debt bad debt debt cost and the level of on Oahu and it is also the.
Australia by the continued increase in the parade in the prepaid auto growth on the controller and the migration from the contrary to the postpaid what is important to rely on this we have always to check the amount of giga debt, we put in our plan because what we're doing is that the we define.
A certain amount of giga on their control that are not big enough to keep the cash summer on that plan to try to solicit data immigration from Controle to postpaid to reach also N a year level of Giga in the meantime, as we are used to say we don't talk.
Compete just on he got and price is the strategy that we call are Linda <unk>.
And so if you look at our offer what we are doing we are putting in all our package a different level of services to justify all so an increase of price.
Onto cash just to give you an idea on the postpaid whereby a service for our customer base, where our customer do not interact in the call center weighted in I've War. So we then automatic machine, but he has a possibility to where they can share service. So I think that debt perhaps.
Saying this gas only about <unk>, it's partially on correct. Because you are trying to build a differentiation that come through the amount of giga the level of service that we supply to the customer and the content with the so called the entertainment ABA.
Strategy.
And another important element there again 2 guaranteed the maximum level of efficiency in our commercial activity. We are continuing to develop our net next back section platform that thanks also to artificial intelligence tool and I'll watch to understand well.
It makes sense to upgrade the customer.
Sometimes of a 4 hour per increase a sometimes to share not control.
Let's move to the second question on that is customer platform. Yes, we are satisfied about our strategy as we announced we closed the agreement.
Oh, I'm going on and I personally want to thank you.
Cognate team to web chosen team as their partner for these new journey I think that is also important to remember that we were we want to continue in this way we are planning to close other 3 odd or a deal by the end of this year, we have already announced.
With the SEC on the telemedicine and the financial services with the digital wall letter, but we have been planned to launch another 1 that is much more related to the value added services environment.
Last but not least I think that the we will lap real good operating.
Fortuitous coming from the mobile advertising failed ear again, a call to action to all the telco player to join forces because if we put together all the assets that we have we are able to stay in the market competing with big player as Google Facebook.
Book in a market that is much bigger now about the marginality I didn't want to.
Yeah, just complementing a hybrid.
It's interesting your question about the margin.
Probably the first time, we discuss about margins of these kind of revenue so.
The thing is as you know we're.
Revenues coming from commissions of the Activations of new accounts of each of these.
This business so.
In this and obviously the modularity is much higher than the normal 1 because we do not have additional direct associated cost you may think about.
Our book our efforts in total in terms of communication debt are.
Oh hi.
As always.
But at the same time, there is a lot of synergy because it's the same communication that we use for our products Mb.
Embedding also the different.
On the different new offers first 1.6.
Oh in the partnership with Kona so at.
At the end.
In terms of the business itself.
Yes, it has a higher marginality, but there is another variable probably for us much more important that these offers this new business for us are extremely important.
And in terms of increasing the lifetime of our customers. So obviously, they're reducing the churn hubs.
Helps a instead.
Instantly to increase on margins so on the overall.
On a as in terms of in terms of margins it's extremely positive.
We're very happy.
Total in terms of how it's going these are these new businesses.
And obviously, we are probably expecting a to go above the initial target that we have for this year. So again its it was interesting your question because it helps because it's the first time, but with the guests.
Discuss about margins on this.
If I can finalize the onset of the ASEAN not relative to the margin, but again a statement about the strategy, we foresee for our compound, but I think for our industry, a few trend, which we have to work more and more more and more on services.
With his wallet of the service and the scandal partnership.
<unk> is the only way to attribute value to a salaries that differently could become a commodity and this is what sustains our strategy from volume to value.
Okay, very clear periods Ronald Thank you and net and.
Thanks for the great work and the death of floating on a new channel. Thank you.
Thank you Fred Thank you again.
Yeah.
Our next question comes from Vitor Tomita with Goldman Sachs. Please Mr. Tomita you May proceed.
Mr. Victor Your line is open you May go ahead.
Our next question comes from Sumit Datta with New Street research.
Please you May go ahead.
I'm, hoping you can and you can hear me.
Thanks, very much for taking the questions on all sides of it.
Thanks, very much for your help over the years and good luck with everything.
In the future.
Couple of things from me please first of all.
On financial services.
Just to delve into a little bit of detail there if I could can I check firstly I saw the news about J P. M. Taking a state can see 6 I just wonder does that.
Change anything in terms of your perspective on on.
On the future outlook doesn't change anything.
In terms of deal economics. Please.
Secondly, can you say anything around the.
The contribution of Tim subscribers to the overall M C.
<unk> subscriber total any day.
And I think you'd be able to give numbers, but any sort of sense as to your contribution there.
And then thirdly, please I just wonder if there's a comment in the presentation about.
A digital wallet launch in the third quarter.
Just wondered specifically on monetization how does not.
And how does that help things going forward I think at the moment.
On essentially you sign up a subscriber and you get paid a share of that I just wondered what.
If and when you launched your digital wallet, how does that change that monetization process. Please.
And then I had 1 more on the <unk>, but may be we could.
Fintech start first please.
We're assuming I was waiting for your question related to the <unk> vodka with non stop from that let's start from the easiest 1 that are the first 1 about the D.
JP Morgan that Cc ex acquisition.
The sampling debt.
With the second question that is related to the contribution Tim subscribers in the gasoline based on 6 or information on that debt to be assets, primarily to see 6 because it's clear that we don't table that kind of detail we add some details about the J P. Morgan.
On process and once.
We will receive the 4 months that we will be able to give you some more details.
Related to the digital wallet.
It's really an interesting question because again.
Sometimes when we discuss about the telco industry everybody asked Gaza if in the next quarter, we will improve our EBITDA our.
Our cash on the return on investment on a weekly basis and then there is another award outside debt. These digital 1 well it seems that cash is not that kinga profitability is not important on what is important it's only the amount of customer that we get these kind of services weighting in.
Except for a possible monetization.
So.
It's clear that I'm doing a provocation bought that I am joking, what we have in mind is that why don't we try to enter in this field are getting all the best the debt we have from this new wave of industry.
Without put on the table, a so huge amount of capex or opex to develop that what they mean, if you look all of these projects of consumer platform I for US project on which we work on them marginally basis in terms of Capex opex, so with our traditional financial discipline approach.
While on creating or helping to create a larger amount of customer base in the future. We can exploit the monetization when you discuss about the digital wallet, then I cannot and don't want to mention the amount of different players that are doing.
Wish on them.
Believe ball evaluation about the digital wallet in Brazil.
Never seen any kind of number that explain our display you will monetize really this kind of business, so which is our idea in synthesis, let's use our assets that will permit.
They've allowed us to stay in these new fields with marginal capex and the Opex contribution to try to get the opportunity from evaluation on that that part from the traditional telco evaluation. It doesn't mean that our team will be.
We lose 1 second.
Permitting in the execution of the core business that is what is going to pay our salaries in the next future.
Definitely a couple of minutes to Renato to give some more details about the digital wallet. If you want but again this is the philosophy on.
On the loss on let's answer to run up and then we.
On oil deal.
Hi, Sumit.
Thanks for the question.
The digital wallet as you know Piero eats a market that has several players in the Brazilian market down and there is a trend of consolidation in the next years.
So we are looking to that market. We're looking to the players are and we are.
Moving to waiting for the right partnership with the player that we believe will be a survivor in the consolidation of this market because there are it's easy to launch a wallet down there are many solutions, which are off the shelf now they could quickly lounge, but that ends and secure our future debt doesn't secure a success. So.
Better wait and find the right partner for doing the right solution that will have a likelihood to be a survivor in the consolidation market and generate value for our customers and power shareholders.
I used to say, let's put some number we are in it.
Finalization of a lease of 2 potential partner.
So we are not still thinking what to do and now we have to choose which of the 2 makes sense.
And that we are evaluating that the also with other player other telco player in the market. Because this is another area where jointly we can create more value for all our shareholders. Yeah, we discuss about cooperation unless.
So we better competition.
Coming to the OE dealer.
I really thank you for the question because sometimes you are 2 per light to us, but again I think that debt in the press that there were some indication that perhaps are generating a misunderstanding now I leave the stage to Mario.
But we will not tell you what we think about matter will mention 2 numbers that better than everything explain which is the real situation matter. Please.
Yeah.
Ah yes.
Yes. Thank you. Thank you for the question and no surprises us from some press today describe better.
And then he can go through these procedural step in on this call declaration of complexity is a technical step provided in the law that aims to request additional information and eventually work says and necessity step 2 to ask for a new extension of deadline.
But there's another court. This did another cool the deadline is the same of the origin on the process. So.
During this complementary steps Cowboys per as expected asking some questions about D. M. You know market access infrastructure, so something that was absolutely XP.
<unk> and these are stage and just to give some numbers about you know in the in.
In the part over the past 13 months.
On a card has made the twenty-two declaration of complexity now in 3 K 3 cases are still in progress.
Clothing hours case, 1 was the part you withdrew from the total.
<unk> 18 cases were approved with the 9 of these 18 changes without any any conditions. So we consider that this is a quite a natural step for our and operation of such a dimension and and the timeline for approval on in the third.
Fourth quarter are we think are absolutely without a without prejudice.
Okay. That's very clear. Thank you. Thank you for clarifying on thank you. Thank you.
Yeah.
Our next question comes from Vitor Tomita with Goldman Sachs.
Production Mr. Tony go ahead.
Hello can you hear me now.
Hello, Peter the Eros.
Hello I areas.
Yes, we are hearing you so please.
Oh, Okay. So thank you very much from a question sorry for that technical issues here or there. So 2 questions on our side. The first 1 is if you guys could provide any additional visibility on excess it's tiny part the NBA partnership with cognizant.
And the second question would be on the competitive environment in mobile during the Florida. If you could give us any additional views on how competition has eased during the Florida and specifically on the dynamics of postpaid net ads. Thank you.
Okay.
Thank you Victor about the amply disability I leave to Renato to give you some more details.
So a bit on he forgot your question right. You're are you asking about the timing of the partnership with next day.
Okay. So as you as you probably got to the Nielsen through our.
Announcements, we have signed the contract earlier this month, we have announced it already the first offering in our national.
Sales convention on the 7 and 8 for July is the force joined offer debt. We have done with them are right. Now we are working on our product roadmap.
This is a long term.
Contracts are 5 year contracts are we expect to be launching new offers with them either in Q4 or Q1 of next year. So there is a whole roadmap that is being worked now but we have a very quickly lounge at the first offer that is has hit the hour.
Commercial sales channel already in July because as you probably know the education market has a peak in July August. So we're taking advantage of the peak of the second semester registrations, which happens in July August with these new first offer and right now we are working on a per roadmap and we'll be probably announcing this.
Matt book, New offers with them are in.
In the third quarter results call for the fourth quarter and for the first quarter of next year.
Thank you Renata related to the borders to aggressive competitive environment than the postpaid net that's a lead to a bad debt wants it but just a quick answer.
He just wrote the market continued to stay irrational competing putting services, increasing sometimes the amount of geek out is some of that related to some price up because we did a price up but also at the end of the day Viva and clarity the price up I think that it was a natural move related to the fact.
Bad debt during the pandemic the customer to be able to change with debt.
Any significant increase in terms on the data consumption. So its a natural process that allow US also to proceed with the monitor monetization of the data grew about postpaid net adds the second.
Sorry, if there was that it also by the breadth as usual implant battery, we are coming back to part Ethernet. That's in this in debt this quarter, but Alberto can give some more colors on Buffalo debt, Yes, hi, Vita adjust how they compare to say I will say that yes. He has confirmed that the postpaid. This rationale overall so on our side are we.
Quota share without on control, our customer base or a piece of it the price up in this quarter on a price adjustment I would say, it's a more for more strategy. So it's a surprise.
So price adjustments in exchange for additional jugal for our customers.
Our competitors in these quarters the increase of the price of their post.
Postpaid offers.
So this happened we'd do on collateral and therefore, we see.
Let's say this rationality to maintain it with this adjustment on our acquisition plans are at this point I would say that our we are a sort of a line because we will meet that I'm.
On the 2 of them.
And when it comes to our outlook for net addition for the following months I would say that the we are.
Go in we're expecting to go into positive net additions in the following months on the postpaid and prepaid this segments.
Very.
Thank you very much.
Thank you Victor.
Yeah.
Our next question comes from Victor <unk> with UBS. Please Mr. Aq Chip go ahead.
Hi, good morning, everyone.
Thank you for taking my question.
Yeah.
1 question regarding <unk>.
It environments from the wireless segment weighted.
Target.
And the others.
Diluted net ads.
The risk of lower growth for you on the future compared to the market.
Just on a stand alone.
Oh wait mobile.
I also should we seeded the weighted inflation. Thank you.
Victor.
So what I think debt yourself name being Italian EQT.
Just 2 part yeah yeah.
Yes. It is.
As Italian.
But again, if we catch in the right way your question on lease.
After the fact, if our strategy, let me phrase that the net less polite way from volume to value with the readout with it with a lower number of net debt is something sustainable in the medium long term.
So again I think that the answer it's quite easy to 2.
Related looking at debt trends and the comparison that I cannot do bad debt you can do on your own related to the trend of the net debt year over ear in terms of growth of all the different player the trend of revenues growth year over year on quarter over quarter of the player and you.
Part of it that we are progressively reducing the GAAP anywhere close with 1 of the other 2 player to fill the gap and go to the breakeven. The other element I'm I'm used to always say that I think that is not try to look at the number of Tim Brazil.
In Pcs and bites.
What that mean, we are the player that is a part and put them in the market the number of revenue growth a.
EBITDA grew cash.
Cash grew everything under control I don't want to exceed in some element that can have impact in all the other numbers because again, if we want.
You can squeeze the number of Macbeth, if we consider that he had brookfield value, but they don't think so.
It's quite easy for us, but at certain point, you ought to will be dilutive debt.
The increase of commercial cost will explode the risk of debt that they can increase so again.
You are asking.
On twin as shareholders or potential shareholders to continue to perform in a financial weigh in on the line of our profit and loss. It means revenue EBITDA cost control.
And then the fact that Brazil as customer debt continued to watch for.
For an increase of data consumption and allow us to continue to say that there are rooms.
To further increase in them.
Of our book.
And last but not least.
Let's remember and I'm proud about that that every time, we were there.
First mover in the Brazilian market to set up and you're approaching the market. We were the first 1 to start with the migration Brett to postpaid and at certain point, we started to understand that.
A strong push on that but do not create value. We were the first 1 to start to migrate from control.
<unk> day to pass now we what we where we were the first 1 to move towards a content included services in our package to ever competition that is beyond connectivity and last but not least we were the first 1 to move toward a consumer platform strategy.
All of debt that the pieces that allow me to say that we think debt in the medium long term our strategy continued to be sustainable but to be clear I'm not standing debt. We don't want to grow in terms of net debts and the next quarter, we'll be back in positive even at that I don't want to.
The growth at any cost because net debt at any cost or not a proxy of value generation for our shareholders.
That's very clear thank you very much.
As a reminder.
If you'd like to ask a question. Please press star 1 on your phone now.
Without any further questions, ladies and gentlemen, I would like to answer.
<unk>.
Without any debt.
Part questions, ladies and gentlemen, I am now returning for Mr. Pietro Labriola for his final remarks. Please Mr. <unk> you May proceed.
I'm happy with the results we delivered in the pre salt.
Second we set about greater portion.
Communities and many challenges.
That is why we will focus on the execution to complete the pending project and close an excellent year I'm sure year from now when we look back to 2021 on the map this year as a key milestone in the transformation.
Of this company.
I want to thank you really think you our team's commitment and dedication on.
For the living at high level. Despite all the challenges of the moment, we are really a great team.
Thank you once again for participating in our conference call.
I hope we can meet soon maybe even in person.
Thus, we conclude the second quarter of 2021 conference call of Tim assay.
For further information and details of the company. Please access our website.
On Tim Dot Com Dot BR slashed IR you can disconnect from now on thank you once again.
Paul.
Okay.
Yes.
Okay.
Yes.
Okay.
Yeah.
Yeah.
Sure.
Okay.
Okay.
Okay.
Yes.
Yes.
Okay.
Okay.
Okay.
Yes.
Sure.
Okay.
Yes.
Sure.
Tim.
Yes.
Okay.
Sure.
Okay.
Okay.
Sure.
Okay.
Okay.
Okay.
Okay.
Yes.
Okay.
Okay.
Sure.
On.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Yes.
Okay.
Yes.
Okay.
Okay.
Okay.
Yes.
Yes.
Yes.
Okay.
Yes.
Okay.
Okay.
Sure.
Okay.
Okay.
Okay.
Sure.
Okay.
Okay.
Okay.
Yes.
Sure.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Yes.
Thank you.
Okay.
Okay.
Okay.
Yes.
Okay.
Okay.
Yes.
Okay.
Okay.
Yes.
Yes.
Sure.
Okay.
Okay.
Yeah.
Thank you.
Sure.
Sure.
Okay.
Yes.
Good day.
Yes.
Yes.
Okay.
Sure.
Yes.
Sure.
Sure.
Okay.
Okay.
Okay.
Okay.
Okay.
Sure.
Yeah.
Yes.
Yes.
Sure.
Okay.
Yes.
Sure.
Okay.
Okay.
Okay.
Okay.
[music] accounts.
Okay.
Okay.
[music].
Okay.
[music].