Brazil's TIM posts 20 percent drop in adjusted quarterly profit
SAO PAULO Aug 4 (Reuters) - TIM Participaçoes SA , Brazil's second-largest wireless phone company, reported on Tuesday a 20 percent drop in adjusted quarterly profit due to weak sales.
The Brazilian unit of Telecom Italia said in a securities filing that net income fell from a year earlier to 290.75 million reais ($84 million), beating an average forecast of 275 million reais in a Reuters poll.
The adjusted net income for the April-June quarter excludes proceeds from the sale of 6,481 company towers. If included in the bottom line of the company's results, TIM had a reported net income of 926 million reais, up 153 percent from a year ago.
Rising inflation and unemployment has sapped consumer purchasing power in Latin America's largest economy, weighing on demand especially among TIM's more cost-sensitive prepaid users.
Net revenue fell 9 percent from a year earlier to 4.35 billion reais, while operating costs fell 10.5 percent to 3.08 billion reais.
Earnings before interest, taxes, depreciation and amortization also fell 4.4 percent to 1.27 billion reais, below an average forecast of 1.357 billion reais.
TIM's management on Tuesday elected Pietro Labriola as chief operating officer, after parent company Telecom Italia nominated him to help shore up the company's flagging sales and prepare for consolidation in the sector.
(Reporting by Reese Ewing; Editing by Lisa Shumaker)
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