SAO PAULO, May 11 (Reuters) - TIM Participaçoes SA , Brazil’s second-largest wireless phone company, is replacing its chief executive, seeking new leadership to spearhead a turnaround after reporting a 60 percent drop in first-quarter net income.
Profit at the Brazilian unit of Telecom Italia fell to 128 million reais ($37 million) from a year ago, below an average analyst estimate of 248 million reais in a Reuters poll.
Company veteran Stefano De Angelis will replace former Chief Executive Rodrigo Abreu, the company said in a filing.
The chairman of controlling shareholder Telecom Italia SpA said last month the board was considering management changes at TIM “as you do when a company enters a turnaround phase.”
Quarterly net revenue fell 15 percent from a year earlier as the worst recession in decades squeezed Brazilians’ disposable income while inflation raced to near 10 percent in 12 months.
TIM was also hit by costs to cut personnel, while provisions for customers’ unpaid accounts rose 26 percent.
Earnings before interest, taxes, depreciation and amortization fell 17 percent to 1.121 billion reais, missing an average analyst estimate of 1.251 billion reais.
$1 = 3.45 Brazilian reais Reporting by Brad Haynes; Editing by Edwina Gibbs