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March 2003 11Page
Tele Nordeste Celular
Tele Nordeste Celular
Webcast – 2003 Results
2TND – 2003 Results PageTele Nordeste Celular
Agenda
• 2003 Main strategies• Market performance
High quality client baseGross additions and churnRetention and net additions
• GSM launch• 4Q03 Financial overview
Net revenuesARPU performanceMOUSACEBITDANet income
3TND – 2003 Results PageTele Nordeste Celular
2003 Main strategies
• GSM launch
• Development of new services
– Focusing on the corporate segment
• Qualitative acquisition based on customer value
– Outgoing traffic boost
• Loyalty and retention
– Churn reduction
• Optimization of cost and expenses
• Strict control of bad debt
4TND – 2003 Results PageTele Nordeste Celular
High quality client base
694
1,232
705
1,467
2002 2003
∆ %12.8%
64.0%
36.0%
67.5%
32.5%
1,9262,172
Total lines(in thousands)
Postpaid
Prepaid
ConsistentConsistent growth due to the offers of growth due to the offers of new servicesnew services
5TND – 2003 Results PageTele Nordeste Celular
Gross additions and Churn
Driving growth through: - Service and brand recognition- Better quality acquisition YoY
Driving growth through: Driving growth through: -- Service and brand recognitionService and brand recognition-- Better quality acquisition YoYBetter quality acquisition YoY
Gross Additions(in thousands)
30.7 114.5
30.9
145.5 118.3
479.8
146.6
473.4
4Q02 4Q03 2002 2003
∆ %21.5
145.2176.4
PostpaidPrepaid
6.4 4.9
23.218.3
4Q02 4Q03 2002 2003
Churn (%)
∆- 1.5 p.p
598.1 620.0
∆ %3.7
∆- 4.9 p.p
6TND – 2003 Results PageTele Nordeste Celular
Boost of the Net additions
(42.3) 63.4 72.0
(91.3)
259.4
11.1
235.6
4Q02 4Q03 2002 2003
∆ %241.2
Net additions (in thousands)
168.1
PostpaidPrepaid
User profiling as key for acquisition and retentionUser profiling as key for User profiling as key for acquisition and retentionacquisition and retention
246.7
∆ %46.8
21.1 72.0
7TND – 2003 Results PageTele Nordeste Celular
Technology OptionMobility Profile
Local(ex: only capital) TDMA and GSM
Regional(ex: capital and inner cities) TDMA
National(ex: only capital) TDMA and GSM
National and Regional TDMA
All operating companies using GSM
Ensure the right option according to client mobility profileExpanding GSM coverageClient options ⇒ novelty, handset, data, MMS, SMS
Ensure the right option according to client mobility profileExpanding GSM coverageClient options ⇒ novelty, handset, data, MMS, SMS
More than 41% of the population covered
8TND – 2003 Results PageTele Nordeste Celular
Net revenues performance
Consistently increasing service revenueConsistently increasing service revenueConsistently increasing service revenue
14.3
237.0
18.7
244.4 50.4
871.1
94.5
904.9
4Q02 4Q03 2002 2003
251.3
921.5
Net revenues(in millions R$)
HandsetServices
∆ %4.7
263.1
999.5∆ %8.5
9TND – 2003 Results PageTele Nordeste Celular
ARPU Performance
ARPU(in R$)
ARPU(in R$)
Stable when compared to client base growth
(Growth with profitability)
Stable when compared to Stable when compared to client base growthclient base growth
(Growth with profitability)(Growth with profitability)
40.0 37.5
2002 2003
37.0 37.2 37.238.8
1Q03 2Q03 3Q03 4Q03
10TND – 2003 Results PageTele Nordeste Celular
MOU (in Minutes)
• Outgoing traffic growth thanks to the high value customer acquisition policy
• Income usage suffered due to fixed lines blocking calls to our network
•• Outgoing traffic growth thanks to the high value Outgoing traffic growth thanks to the high value customer acquisition policycustomer acquisition policy
•• Income usage suffered due to fixed lines Income usage suffered due to fixed lines blocking calls to our networkblocking calls to our network
4Q02 1Q03 2Q03 3Q03 4Q032002 2003
113104 105 108 108 113 107
IncomingOutgoing
11TND – 2003 Results PageTele Nordeste Celular
Qualitative acquisition based on customer value
84 82
11091
4Q02 4Q03 2002 2003
SAC(in R$)
SAC decreased due to the gross adds increase, but also due to our distribution
channel's strategy
SAC decreased due to the gross adds SAC decreased due to the gross adds increase, but also due to our distribution increase, but also due to our distribution
channel's strategychannel's strategy
12TND – 2003 Results PageTele Nordeste Celular
4Q02 4Q03 2002 2003
EBITDA performance
48.5%
121.8
408.9
37.2% 35.8%
Affected by the OPEX due to the implementation of the GSM networkAffected by the OPEX Affected by the OPEX due to the due to the
implementation of the GSM networkimplementation of the GSM networkEBITDA (Millions R$)
124.1
427.7
47.2%
46.4%40.9%
1Q03 2Q03 3Q03 4Q03
47,2%
35.8%37.2%43.3%
124.1
90.392.8101.5
13TND – 2003 Results PageTele Nordeste Celular
118,6
207,5
2002 2003
Growth in Net Income
∆%
75.0
Net income increased 75% compared to 2002 due to our policy to growth with profitability
Net income increased 75% compared to 2002 Net income increased 75% compared to 2002 due to our policy to growth with profitabilitydue to our policy to growth with profitability
Net Income(Millions R$)
14TND – 2003 Results PageTele Nordeste Celular
For further information, please contact:http//www.timnordeste.com.brInvestor Relations:
Leonardo Wanderleyphone: 55 81 3302-2594 – [email protected]
Fabíola Almeidaphone: 55 81 3302-2813 – [email protected]
Polyana Macielphone: 55 81 3302-2593 – [email protected]
