By Rogerio Jelmayer
SAO PAULO--Brazilian mobile-phone company TIM Participacoes SA
(TSU, TIMP3.BR) saw a 20.5% decline in net profit in the second
quarter, as revenue fell amid the country's poor economic
performance.
The Brazilian unit of Telecom Italia SpA (TI, TIT.MI) late
Tuesday reported a net profit of 290.7 million Brazilian reais ($84
million) in the second quarter, down from BRL365.6 million a year
earlier.
The company's net revenue dropped nearly 9% in the period to
BRL4.35 billion.
"During the second quarter of 2015 we could continue to observe
what we had highlighted at the beginning of the year, which is a
tough macroeconomic environment, with a scenario of high inflation
and contraction of the economy, which is expected to present
negative growth during the year, reverting the projections of
moderate growth developed at the end of 2014," said Rodrigo Abreu,
company's CEO, in a statement.
TIM Participacoes, which is the second-largest Brazilian telecom
in terms of clients, ended the quarter with a total of 74.6 million
clients, up 0.5% from the second quarter of 2014.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
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