The Brazilian subsidiary of Telecom Italia, Tim Brazil, reported profits down 8% in the fourth quarter of 2014, due to stagnating sales and rising costs. In the last quarter of last year, the net profit of the telecommunications company was 460 million real, in line with the 459 million estimated by analysts.
Weak employment growth and annual inflation above 7% eroded Brazilian consumer confidence, leading to a contraction in consumption, and keeping sales unchanged compared to the same period of the previous year.
Growing demand for data services helped offset the decline in voice revenues. And the fixed line division's net revenues saw unexpected growth. Ebitda climbed 4% to 1,558 billion reals, above forecasts of 1,489 billion.
