SlideShare a Scribd company logo
1 of 6
Download to read offline
FOR IMMEDIATE RELEASE
Contacts:

Tele Nordeste Celular Participações S.A.                   Thomson Financial IR
Mario Gomes                                                Peter Firestein
55.81.216.2592                                             Isabel Vieira
Fabíola Almeida                                            212.701.1823
55.81.216.2594
Octavio Muniz
55.81.216.2593


              TELE NORDESTE CELULAR PARTICIPAÇÕES S.A.
               ANNOUNCES FIRST QUARTER 2000 RESULTS
Recife, Brazil (May 2, 2000) – Tele Nordeste Celular Participações S.A. (NYSE: TND) (“Tele
Nordeste,” or “The Company”), the holding company controlling the operating companies
serving Band A cellular telecommunication customers in the states of Piauí, Ceará, Rio Grande
do Norte, Paraíba, Pernambuco and Alagoas, announced today its results for the first quarter of
2000 in accordance with Brazilian GAAP. The translation to US dollars has been presented
solely for the convenience of the reader. This conversion does not imply that reais amounts
actually represent such US dollar amounts or may be converted to US dollars at the rate
indicated. The US dollar amounts have been converted from reais at the commercial selling
rate published by the Central Bank of Brazil at March 31, 2000, which was R$1.75 to US$1.00.

Operational Highlights

Marketing activities during the first quarter 2000 resulted in the net addition of 125,340
customers, representing a 10.5% increase compared to the customer base at December 31,
1999. The Company had 1.3 million customers at March 31, 2000, of which 886,000 (67.5%)
were contract customers and 427,000 (32.5%) were prepaid customers. Postpaid and prepaid
churn for the quarter was 4.3% and 5.5%, respectively. The market share at the end of the first
quarter of 2000 was estimated at 69%.

Financial Highlights

Tele Nordeste’s net income for the first quarter of 2000 was R$11.2 million (US$6.4 million) or
R$0.033 (US$0.019) per thousand shares, compared to R$13.6 million (US$7.8 million) for the
first quarter 1999. Consolidated net operating revenues for the first quarter of 2000 reached
R$215.5 million (US$123.1 million), compared to R$141.7 million (US$80.9 million) for the first
quarter of 1999. The Company reported consolidated EBITDA of R$74.9 million (US$42.8
million) for the first quarter of 2000, representing a 34.8% EBITDA margin over net operating
revenues, compared to the R$63.8 million (US$36.5 million) EBITDA and 45.4% EBITDA
margin reported for the first quarter of 1999.    EBIT for the first quarter of 2000 increased to
R$48.9 million (US$27.9 million) while EBIT margin dropped to 22.7% compared to EBIT of


                                               1                           www.timnordeste.com.br
R$35.5 million (US$20.3 million) and EBIT margin of 25.5% reported for the first quarter of
1999.


 Select Consolidated Financial Data (in thousands of Reais)

                                                             First Quarter
                                                  2000           1999        % Inc
Revenue
- Usage charges                                   131,388         94,020         39.7
- Monthly subscription payments                     52,194        31,815         64.1
- Network usage charges                             61,511        39,935         54.0
- Sale of goods and other revenues                  34,123        12,809        166.4
Subtotal                                          279,216       178,579          56.4
- Value added and other indirect taxes            (64,738)      (38,045)         70.2

Net Operating Revenue                             214,478       140,534          52.6

Cost of Services and Goods Sold
- Depreciation and amortization                    24,357         27,942        -12.8
- Personnel                                         2,743            565        385.5
- Material and services                             1,529          5,141        -70.3
- Lease of circuits and related costs              34,119         31,324          8.9
- Leasing and insurance                             2,222          1,465         51.7
- Handsets and accessories                         31,721          6,833        364.2
- Fistel and others                                 6,204          4,793         29.4
Subtotal                                          102,895         78,063         31.8

Gross Profit                                      111,583         62,471         78.6


Net operating revenue for the first quarter of 2000 increased 52.6% when compared with the
same quarter of the previous year. This is primarily due to the substantial increase in the
average number of customers, which reached 92.1% quarter-over-quarter (from 667,000 to
1,283,000), and the increase in sales of handsets. Excluding sales of handsets, net operating
revenues increased 45% quarter-over-quarter.

The interconnection rate increased by 15% on December 1, 1999, and the VC1 rate increased
by 12% as of February 1, 2000. These two rate increases have positively impacted net
revenues for the first quarter of 2000.

The lease of circuits and related costs increase of 8.9% reflects higher usage of other operators’
network by our clients, offset by discounts on leased circuits as compared to the first quarter of
1999.

Other costs reflect the overall increase in operations.




                                                 2                           www.timnordeste.com.br
Operating Expenses (in thousands of Reais)

                                                               First Quarter
                                                    2000           1999              % Inc
Operating expenses
 - Selling expenses                                   46,565            16,894       176%
 - General and administrative expenses                18,247            12,047        51%
 - Other operating income                              (366)            (1,822)
Subtotal                                              64,446            27,119       138%
Net financial expenses                                20,973              6,467      224%
Total operating expenses                              85,419            33,586       154%



Net operating expenses increased 154% compared to the same quarter of the prior year, from
R$33.6 (US$19.2 million) in 1999, to R$85.4 million (US$48.8 million) in 2000.

Selling expenses in 2000 reflect the more intense marketing and distribution activities and
higher bad debt expenses.

Consolidated bad debt expenses for the first quarter of 2000 amounted to R$20.7 million
(US$11.8 million), representing 7.4% of gross revenue, compared with R$6.2 million for the first
quarter of 1999, which represented 3.4% of gross revenue for that quarter. The Company has
taken measures to reduce bad debt expenses, following the normalization of the new billing
system. These measures include the outsourcing of collection activities as well as the
disconnection and/or migration to the prepaid system.

General and administrative expenses in 2000 were higher because of the increase in headcount
when compared to the same period in 1999, when most of the administrative positions had not
been filled.

Financing expenses reflect the higher debt levels when compared to the first quarter of 2000
and financing costs related to sales of handsets in installments.

Consolidated Statistics

                                                                2000                 1999
                              st
Contract customers at March 31                               886,085              689,739
                               st
Prepaid customers at March 31                                427,167                     -
Total customers                                            1,313,252              689,739
Growth over same quarter of the previous year                 90.4%                48.5%
Estimated population of region (in millions)                     26.2                 25.8
                                st
Cellular penetration at March 31                               7.2%                 3.3%
Average monthly incoming minutes of use per
customer during first quarter                                     94                  101
Average monthly outgoing minutes of use per
customer during first quarter                                     76                   94


The blended average revenue per user (ARPU), net of taxes, for the first quarter of 2000, was
R$51 per month, compared to R$67 per month for the first quarter of 1999. Postpaid and
prepaid ARPU were R$63 and R$24, respectively, for the first quarter of 2000.




                                                3                                 www.timnordeste.com.br
Competition

The Company estimates that its market share at the end of the first quarter of 2000 was
approximately 69%.

General handset subsidies have been discontinued as of March 1, 2000. As a result, the
immediate effect was a 44% reduction in gross additions of contract and prepaid customers in
March. New tariff plans are being offered to contract customers, with one-year contracts, which
may include some type of subsidy on the handset price. Management understands that the
retention of heavy (contract) users is the key to profitability, therefore, the marketing and
distribution efforts have now been redirected towards those clients.

Balance Sheet

Consolidated debt at March 31, 2000, was R$377 million (US$215 million). This balance was
fully comprised of Real-denominated debt, following the Company’s policy of no exposure to
currency risk.

The bad debt provision amounted to R$30.9 million (US$17.6 million), representing 15% of
accounts receivable at March 31, 2000.

Capital Expenditures

During the first three months of 2000, Tele Nordeste and its subsidiaries invested R$36.1 million
(US$20.6 million), mainly on network digitalization. The capex program for 2000 amounts to
R$215 million and includes enhancements to the Company’s systems, new services and
Internet facilities.

Human Resources

The number of employees at March 31, 2000, totaled 1,277, including full-time, interns and
temporary employees. The customer/employee ratio increased from 711 at March 31, 1999, to
1,028 at March 31, 2000.

Subsequent Events

The shareholders of the operating companies approved, at their respective Annual
Shareholders’ Meetings held between April 24-26, 2000, the financial statements for 1999 as
well as the payment of interest on equity (dividends) as proposed by the respective
management of Telasa Celular, Telpa Celular, Teleceará Celular and Telepisa Celular..

Tele Nordeste’s shareholders approved, at the Annual Shareholders’ Meeting held on April 27,
2000, the financial statements for 1999 and the payment of interest on equity (dividends) in the
amount of R$8.4 million, net of withholding income tax (R$0.0251 per 1,000 shares).

At the Extraordinary Shareholders’ Meeting held on April 28, 2000, the shareholders of Tele
Nordeste approved the merger of 1B2B Participações S.A., the current controlling shareholder,
into the Company, according to the Relevant Fact published on April 13, 2000. 1B2B
Participações S.A. was formed by Bitel Participações S.A., the controlling shareholder, to allow
the transfer to the Company, and later to its operating companies, of the goodwill premium paid
by Bitel. This merger will be followed by another proposal to merge the six operating
companies, once the necessary approval has been obtained from ANATEL. The Relevant Fact
is accessible at our web site: www.timnordeste.com.br or by calling the Company’s contacts
mentioned above.

                                   *****Tables to Follow*****

                                               4                           www.timnordeste.com.br
Tele Nordeste Celular Participações S.A.


Balance sheets

March 31, 2000, and December 31, 1999

(In thousands of reais)




                                                     Parent Company              Consolidated                                                                      Parent Company              Consolidated

Assets                                            03.31.2000   12.31.1999   03.31.2000   12.31.1999   Liabilities, Minority Interest and Shareholders' Equity   03.31.2000   12.31.1999   03.31.2000   12.31.2000

Current assets                                                                                        Current liabilities
 Cash equivalents                                     1,297          283        7,624        7,768     Accounts payable to suppliers                                  504        1,079       76,898       94,886
 Trade accounts receivable                              127            -      169,630      168,542     Financing and loans                                                           -      332,370      270,586
 Inventories                                             15           25       44,578       28,284     Taxes payable                                                  594        1,002       45,796       45,917
 Telecommunications companies                             -            -       36,462       32,491     Salaries and vacation pay                                    1,205          554        5,885        4,313
 Subsidiaries                                        15,991       12,039                               Subsidiaries                                                10,641       10,295            -            -
 Taxes and contributions receivable                   2,441        3,890       14,758       49,494     Telecommunications companies                                     3            3        9,843        7,520
 Deferred income and social contribution taxes          578          173       21,677       18,088     Dividends and interest on shareholders' equity
 Dividends and interest on shareholders' equity                                                         - Law,9.249/95                                             10,373       10,340        4,401       16,751
   - Receivable according to Law 9,249/95             9,632        9,568            -            -     Other liabilities                                              376        3,502       32,161       25,050
 Loan to subsidiaries                                11,241       18,621            -            -
 Prepaid expenses                                        17            -            -        6,449                                                                 23,698       26,775      507,354      465,023
 Other rights                                         1,597        2,472       67,505       12,317

                                                     42,936       47,071      362,234      323,433
Noncurrent assets                                                                                     Noncurrent liabilities
                                                                                                       Financing and loans                                               -            -      45,376       53,278
                                                                                                       Other liabilities                                                 -            -          93           90
  Tax incentives                                           -            -       2,746        2,679
                                                                                                                                                                         -            -      45,469       53,368

Permanent assets
                                                                                                      Minority interest                                                  -            -     101,176       97,650
  Investments                                       341,111      329,186            1            -
  Property, plant and equipment                       4,901        4,609      654,269      644,020
                                                                                                      Shareholders' equity
                                                    346,012      333,795      654,270      644,020      Capital stock                                             108,943      108,943      108,943      108,943
                                                                                                        Profit reserves                                           178,922      178,922      178,922      178,922
                                                                                                        Retained profits                                           77,385       66,226       77,386       66,226

                                                                                                                                                                  365,250      354,091      365,251      354,091




                                                    388,948      380,866    1,019,250      970,132                                                                388,948      380,866    1,019,250      970,132
Tele Nordeste Celular Participações S.A.


Income Statement
For the quarters ended March 31, 2000, and March 31, 1999

(In thousands of reais)



                                                                 Parent Company                     Consolidated

                                                            03.31.2000        03.31.1999       03.31.2000    03.31.1999

Revenues
  Telecommunications services and sale of goods                          -                 -     279,216       178,579

   Deductions
    Sales Taxes (ICMS, PIS and Cofins)                                   -                 -      (64,739)      (38,045)



Net revenues                                                             -                 -     214,477       140,534

Cost of goods sold and services rendered                                 -                 -     (102,895)      (78,063)

Gross profit                                                             -                 -     111,582         62,471

Operating revenues (expenses)
  Selling expenses                                                    -                 -         (46,565)      (16,894)
  Administrative and general expenses                            (1,807)           (3,252)        (18,247)      (12,047)
  Financial expenses                                                (57)             (690)        (25,005)      (13,907)
  Financial income                                                  734             2,320           4,032         7,440
  Equity in income of subsidiaries                               11,908            15,217               -             -
  Other operating income                                              -                 -             818         3,056
  Other operating expenses                                          (74)                -            (451)       (1,234)

Operating income (loss)                                          10,704            13,595          26,164        28,885

   Nonoperating income                                                   17                -          305               1
   Nonoperating expenses                                                                             (198)         (2,549)


Income before income and social contribution taxes               10,721            13,595          26,271        26,337

   Income and social contribution taxes                             439                    -      (11,590)         (8,278)

Net income before minority interest                              11,160            13,595          14,681        18,059

Minority interest                                                        -                 -       (3,521)         (4,464)

Net income for the quarter                                       11,160            13,595          11,160        13,595

Net income per lot of a thousand shares - R$                       0.03              0.04

Number of shares at March 31 (thousands)                    334,399,028       334,399,028

More Related Content

What's hot

Press Release 4 Q00 Tele Celular Sul En
Press Release 4 Q00   Tele Celular Sul EnPress Release 4 Q00   Tele Celular Sul En
Press Release 4 Q00 Tele Celular Sul EnTIM RI
 
Press Release 1 Q02 Tele Nordeste Celular En
Press Release 1 Q02   Tele Nordeste Celular EnPress Release 1 Q02   Tele Nordeste Celular En
Press Release 1 Q02 Tele Nordeste Celular EnTIM RI
 
Press Release 3 Q02 Tele Nordeste Celular En
Press Release 3 Q02   Tele Nordeste Celular EnPress Release 3 Q02   Tele Nordeste Celular En
Press Release 3 Q02 Tele Nordeste Celular EnTIM RI
 
Press Release 4 Q98 Tele Nordeste Celular En
Press Release   4 Q98   Tele Nordeste Celular EnPress Release   4 Q98   Tele Nordeste Celular En
Press Release 4 Q98 Tele Nordeste Celular EnTIM RI
 
Expeditors International of Washington, 2nd99qer
Expeditors International of Washington, 2nd99qerExpeditors International of Washington, 2nd99qer
Expeditors International of Washington, 2nd99qerfinance39
 
Expeditors International of Washington, 3rd99qer
Expeditors International of Washington, 3rd99qerExpeditors International of Washington, 3rd99qer
Expeditors International of Washington, 3rd99qerfinance39
 
Press Release 1 Q04 Tele Celular Sul En
Press Release 1 Q04   Tele Celular Sul EnPress Release 1 Q04   Tele Celular Sul En
Press Release 1 Q04 Tele Celular Sul EnTIM RI
 
Q1 2009 Earning Report of Baldor Electric Company
Q1 2009 Earning Report of Baldor Electric Company Q1 2009 Earning Report of Baldor Electric Company
Q1 2009 Earning Report of Baldor Electric Company earningreport earningreport
 
clearchannel 30
clearchannel 30clearchannel 30
clearchannel 30finance31
 
Press Release 4 Q03 Tele Nordeste Celular En
Press Release 4 Q03   Tele Nordeste Celular EnPress Release 4 Q03   Tele Nordeste Celular En
Press Release 4 Q03 Tele Nordeste Celular EnTIM RI
 
Q3 2009 Hera Group analyst
Q3 2009 Hera Group analystQ3 2009 Hera Group analyst
Q3 2009 Hera Group analystHera Group
 
clearchannel 26
clearchannel 26clearchannel 26
clearchannel 26finance31
 
walt disney First Quarter2008
walt disney First Quarter2008walt disney First Quarter2008
walt disney First Quarter2008finance7
 
walt disney Quarter 2008 2nd
walt disney  Quarter 2008 2ndwalt disney  Quarter 2008 2nd
walt disney Quarter 2008 2ndfinance7
 
Expeditors International of Washington, 1st00qer
Expeditors International of Washington, 1st00qerExpeditors International of Washington, 1st00qer
Expeditors International of Washington, 1st00qerfinance39
 
u.s.bancorp2Q 2004 Earnings Release
u.s.bancorp2Q 2004 Earnings Release u.s.bancorp2Q 2004 Earnings Release
u.s.bancorp2Q 2004 Earnings Release finance13
 
Press Release 1 Q03 Tele Celular Sul En
Press Release 1 Q03   Tele Celular Sul EnPress Release 1 Q03   Tele Celular Sul En
Press Release 1 Q03 Tele Celular Sul EnTIM RI
 

What's hot (18)

Press Release 4 Q00 Tele Celular Sul En
Press Release 4 Q00   Tele Celular Sul EnPress Release 4 Q00   Tele Celular Sul En
Press Release 4 Q00 Tele Celular Sul En
 
Press Release 1 Q02 Tele Nordeste Celular En
Press Release 1 Q02   Tele Nordeste Celular EnPress Release 1 Q02   Tele Nordeste Celular En
Press Release 1 Q02 Tele Nordeste Celular En
 
Press Release 3 Q02 Tele Nordeste Celular En
Press Release 3 Q02   Tele Nordeste Celular EnPress Release 3 Q02   Tele Nordeste Celular En
Press Release 3 Q02 Tele Nordeste Celular En
 
Press Release 4 Q98 Tele Nordeste Celular En
Press Release   4 Q98   Tele Nordeste Celular EnPress Release   4 Q98   Tele Nordeste Celular En
Press Release 4 Q98 Tele Nordeste Celular En
 
CBS qr3q 01
CBS qr3q 01CBS qr3q 01
CBS qr3q 01
 
Expeditors International of Washington, 2nd99qer
Expeditors International of Washington, 2nd99qerExpeditors International of Washington, 2nd99qer
Expeditors International of Washington, 2nd99qer
 
Expeditors International of Washington, 3rd99qer
Expeditors International of Washington, 3rd99qerExpeditors International of Washington, 3rd99qer
Expeditors International of Washington, 3rd99qer
 
Press Release 1 Q04 Tele Celular Sul En
Press Release 1 Q04   Tele Celular Sul EnPress Release 1 Q04   Tele Celular Sul En
Press Release 1 Q04 Tele Celular Sul En
 
Q1 2009 Earning Report of Baldor Electric Company
Q1 2009 Earning Report of Baldor Electric Company Q1 2009 Earning Report of Baldor Electric Company
Q1 2009 Earning Report of Baldor Electric Company
 
clearchannel 30
clearchannel 30clearchannel 30
clearchannel 30
 
Press Release 4 Q03 Tele Nordeste Celular En
Press Release 4 Q03   Tele Nordeste Celular EnPress Release 4 Q03   Tele Nordeste Celular En
Press Release 4 Q03 Tele Nordeste Celular En
 
Q3 2009 Hera Group analyst
Q3 2009 Hera Group analystQ3 2009 Hera Group analyst
Q3 2009 Hera Group analyst
 
clearchannel 26
clearchannel 26clearchannel 26
clearchannel 26
 
walt disney First Quarter2008
walt disney First Quarter2008walt disney First Quarter2008
walt disney First Quarter2008
 
walt disney Quarter 2008 2nd
walt disney  Quarter 2008 2ndwalt disney  Quarter 2008 2nd
walt disney Quarter 2008 2nd
 
Expeditors International of Washington, 1st00qer
Expeditors International of Washington, 1st00qerExpeditors International of Washington, 1st00qer
Expeditors International of Washington, 1st00qer
 
u.s.bancorp2Q 2004 Earnings Release
u.s.bancorp2Q 2004 Earnings Release u.s.bancorp2Q 2004 Earnings Release
u.s.bancorp2Q 2004 Earnings Release
 
Press Release 1 Q03 Tele Celular Sul En
Press Release 1 Q03   Tele Celular Sul EnPress Release 1 Q03   Tele Celular Sul En
Press Release 1 Q03 Tele Celular Sul En
 

Viewers also liked

Module 8 Statistics
Module 8 StatisticsModule 8 Statistics
Module 8 Statisticsnorainisaser
 
Press Release 1 Q99 Tele Nordeste Celular En
Press Release 1 Q99   Tele Nordeste Celular EnPress Release 1 Q99   Tele Nordeste Celular En
Press Release 1 Q99 Tele Nordeste Celular EnTIM RI
 
Wapada Nasional 10 8 2009
Wapada Nasional 10 8 2009Wapada Nasional 10 8 2009
Wapada Nasional 10 8 2009epaper
 
August 10th, 2009 Dave Ross Word Press
August 10th, 2009 Dave Ross Word PressAugust 10th, 2009 Dave Ross Word Press
August 10th, 2009 Dave Ross Word PressStraight North
 
Constructing A Working Financial Plan For Your Company
Constructing A Working Financial Plan For Your CompanyConstructing A Working Financial Plan For Your Company
Constructing A Working Financial Plan For Your Companyjreedcpa
 
Press Release 3 Q03 Tele Nordeste Celular En
Press Release 3 Q03   Tele Nordeste Celular EnPress Release 3 Q03   Tele Nordeste Celular En
Press Release 3 Q03 Tele Nordeste Celular EnTIM RI
 
Module 5 Inequalities
Module 5  InequalitiesModule 5  Inequalities
Module 5 Inequalitiesnorainisaser
 
Press Release 1 T07 En
Press Release 1 T07 EnPress Release 1 T07 En
Press Release 1 T07 EnTIM RI
 
Press Release 4 Q01 Tele Nordeste Celular En
Press Release 4 Q01   Tele Nordeste Celular EnPress Release 4 Q01   Tele Nordeste Celular En
Press Release 4 Q01 Tele Nordeste Celular EnTIM RI
 
Final Presentation
Final PresentationFinal Presentation
Final Presentationsjh0759
 
F4 Final Sbp2007 Maths P1
F4 Final Sbp2007 Maths P1F4 Final Sbp2007 Maths P1
F4 Final Sbp2007 Maths P1norainisaser
 
Common Classroom Phrases Span
Common Classroom Phrases SpanCommon Classroom Phrases Span
Common Classroom Phrases Spanpotasz
 
Waspada Nasional 5 Agustus 2009
Waspada Nasional 5 Agustus 2009Waspada Nasional 5 Agustus 2009
Waspada Nasional 5 Agustus 2009epaper
 
Subject Pronouns
Subject PronounsSubject Pronouns
Subject Pronounspotasz
 
ApresentaçãO ConferêNcia Morgan Stanley
ApresentaçãO ConferêNcia Morgan StanleyApresentaçãO ConferêNcia Morgan Stanley
ApresentaçãO ConferêNcia Morgan StanleyTIM RI
 
Tim Presentation Goldman Sachs Conference Set09 Eng
Tim Presentation Goldman Sachs Conference Set09 EngTim Presentation Goldman Sachs Conference Set09 Eng
Tim Presentation Goldman Sachs Conference Set09 EngTIM RI
 
Waspada Nasional
Waspada NasionalWaspada Nasional
Waspada Nasionalepaper
 

Viewers also liked (20)

Module 8 Statistics
Module 8 StatisticsModule 8 Statistics
Module 8 Statistics
 
2 Q06
2 Q062 Q06
2 Q06
 
Press Release 1 Q99 Tele Nordeste Celular En
Press Release 1 Q99   Tele Nordeste Celular EnPress Release 1 Q99   Tele Nordeste Celular En
Press Release 1 Q99 Tele Nordeste Celular En
 
Wapada Nasional 10 8 2009
Wapada Nasional 10 8 2009Wapada Nasional 10 8 2009
Wapada Nasional 10 8 2009
 
August 10th, 2009 Dave Ross Word Press
August 10th, 2009 Dave Ross Word PressAugust 10th, 2009 Dave Ross Word Press
August 10th, 2009 Dave Ross Word Press
 
Constructing A Working Financial Plan For Your Company
Constructing A Working Financial Plan For Your CompanyConstructing A Working Financial Plan For Your Company
Constructing A Working Financial Plan For Your Company
 
Press Release 3 Q03 Tele Nordeste Celular En
Press Release 3 Q03   Tele Nordeste Celular EnPress Release 3 Q03   Tele Nordeste Celular En
Press Release 3 Q03 Tele Nordeste Celular En
 
Module 5 Inequalities
Module 5  InequalitiesModule 5  Inequalities
Module 5 Inequalities
 
Press Release 1 T07 En
Press Release 1 T07 EnPress Release 1 T07 En
Press Release 1 T07 En
 
Press Release 4 Q01 Tele Nordeste Celular En
Press Release 4 Q01   Tele Nordeste Celular EnPress Release 4 Q01   Tele Nordeste Celular En
Press Release 4 Q01 Tele Nordeste Celular En
 
Final Presentation
Final PresentationFinal Presentation
Final Presentation
 
F4 Final Sbp2007 Maths P1
F4 Final Sbp2007 Maths P1F4 Final Sbp2007 Maths P1
F4 Final Sbp2007 Maths P1
 
Online Presence Management
Online Presence ManagementOnline Presence Management
Online Presence Management
 
Common Classroom Phrases Span
Common Classroom Phrases SpanCommon Classroom Phrases Span
Common Classroom Phrases Span
 
October 2010 monthly report
October 2010 monthly reportOctober 2010 monthly report
October 2010 monthly report
 
Waspada Nasional 5 Agustus 2009
Waspada Nasional 5 Agustus 2009Waspada Nasional 5 Agustus 2009
Waspada Nasional 5 Agustus 2009
 
Subject Pronouns
Subject PronounsSubject Pronouns
Subject Pronouns
 
ApresentaçãO ConferêNcia Morgan Stanley
ApresentaçãO ConferêNcia Morgan StanleyApresentaçãO ConferêNcia Morgan Stanley
ApresentaçãO ConferêNcia Morgan Stanley
 
Tim Presentation Goldman Sachs Conference Set09 Eng
Tim Presentation Goldman Sachs Conference Set09 EngTim Presentation Goldman Sachs Conference Set09 Eng
Tim Presentation Goldman Sachs Conference Set09 Eng
 
Waspada Nasional
Waspada NasionalWaspada Nasional
Waspada Nasional
 

Similar to Press Release 1 Q00 Tele Nordeste Celular En

Press Release 4 T99 Tele Nordeste Celular
Press Release 4 T99   Tele Nordeste CelularPress Release 4 T99   Tele Nordeste Celular
Press Release 4 T99 Tele Nordeste CelularTIM RI
 
Press Release 3 T99 Tele Nordeste Celular
Press Release 3 T99   Tele Nordeste CelularPress Release 3 T99   Tele Nordeste Celular
Press Release 3 T99 Tele Nordeste CelularTIM RI
 
Press Release 2 Q99 Tele Nordeste Celular En
Press Release 2 Q99   Tele Nordeste Celular EnPress Release 2 Q99   Tele Nordeste Celular En
Press Release 2 Q99 Tele Nordeste Celular EnTIM RI
 
Press Release 1 T99 Tele Nordeste Celular
Press Release 1 T99   Tele Nordeste CelularPress Release 1 T99   Tele Nordeste Celular
Press Release 1 T99 Tele Nordeste CelularTIM RI
 
Press Release 4 Q01 Tele Celular Sul En
Press Release 4 Q01   Tele Celular Sul EnPress Release 4 Q01   Tele Celular Sul En
Press Release 4 Q01 Tele Celular Sul EnTIM RI
 
Press Release 4 Q03 Tele Celular Sul En
Press Release 4 Q03   Tele Celular Sul EnPress Release 4 Q03   Tele Celular Sul En
Press Release 4 Q03 Tele Celular Sul EnTIM RI
 
Press Release 3 Q03 Tele Celular Sul En
Press Release 3 Q03   Tele Celular Sul EnPress Release 3 Q03   Tele Celular Sul En
Press Release 3 Q03 Tele Celular Sul EnTIM RI
 
Press Releases 2 Q05 En
Press Releases 2 Q05 EnPress Releases 2 Q05 En
Press Releases 2 Q05 EnTIM RI
 
Press Release 2 Q02 Tele Celular Sul En
Press Release 2 Q02   Tele Celular Sul EnPress Release 2 Q02   Tele Celular Sul En
Press Release 2 Q02 Tele Celular Sul EnTIM RI
 
Press Release Tele Nordeste Celular 2 Q04 En
Press Release   Tele Nordeste Celular 2 Q04 EnPress Release   Tele Nordeste Celular 2 Q04 En
Press Release Tele Nordeste Celular 2 Q04 EnTIM RI
 
Press Release 2 Q03 Tele Celular Sul En
Press Release 2 Q03   Tele Celular Sul EnPress Release 2 Q03   Tele Celular Sul En
Press Release 2 Q03 Tele Celular Sul EnTIM RI
 
Press Release 2 Q00 Tele Celular Sul En
Press Release 2 Q00   Tele Celular Sul EnPress Release 2 Q00   Tele Celular Sul En
Press Release 2 Q00 Tele Celular Sul EnTIM RI
 
Press Release 4 Q02 Tele Celular Sul En
Press Release 4 Q02   Tele Celular Sul EnPress Release 4 Q02   Tele Celular Sul En
Press Release 4 Q02 Tele Celular Sul EnTIM RI
 
cit 2002%20Q3%20Fiscal%20year%20end
cit 2002%20Q3%20Fiscal%20year%20endcit 2002%20Q3%20Fiscal%20year%20end
cit 2002%20Q3%20Fiscal%20year%20endfinance28
 
omnicare annual reports 2000
omnicare annual reports  2000omnicare annual reports  2000
omnicare annual reports 2000finance46
 
Press Release 2 Q01 Tele Celular Sul En
Press Release 2 Q01   Tele Celular Sul EnPress Release 2 Q01   Tele Celular Sul En
Press Release 2 Q01 Tele Celular Sul EnTIM RI
 
Q4 2006 Earnings Release
	Q4 2006 Earnings Release	Q4 2006 Earnings Release
Q4 2006 Earnings Releasefinance7
 
Press Release 1 Q02 Tele Celular Sul En
Press Release 1 Q02   Tele Celular Sul EnPress Release 1 Q02   Tele Celular Sul En
Press Release 1 Q02 Tele Celular Sul EnTIM RI
 
computer sciences FY 2001 Q3
computer sciences FY 2001 Q3computer sciences FY 2001 Q3
computer sciences FY 2001 Q3finance17
 

Similar to Press Release 1 Q00 Tele Nordeste Celular En (20)

Press Release 4 T99 Tele Nordeste Celular
Press Release 4 T99   Tele Nordeste CelularPress Release 4 T99   Tele Nordeste Celular
Press Release 4 T99 Tele Nordeste Celular
 
Press Release 3 T99 Tele Nordeste Celular
Press Release 3 T99   Tele Nordeste CelularPress Release 3 T99   Tele Nordeste Celular
Press Release 3 T99 Tele Nordeste Celular
 
Press Release 2 Q99 Tele Nordeste Celular En
Press Release 2 Q99   Tele Nordeste Celular EnPress Release 2 Q99   Tele Nordeste Celular En
Press Release 2 Q99 Tele Nordeste Celular En
 
Press Release 1 T99 Tele Nordeste Celular
Press Release 1 T99   Tele Nordeste CelularPress Release 1 T99   Tele Nordeste Celular
Press Release 1 T99 Tele Nordeste Celular
 
Press Release 4 Q01 Tele Celular Sul En
Press Release 4 Q01   Tele Celular Sul EnPress Release 4 Q01   Tele Celular Sul En
Press Release 4 Q01 Tele Celular Sul En
 
Press Release 4 Q03 Tele Celular Sul En
Press Release 4 Q03   Tele Celular Sul EnPress Release 4 Q03   Tele Celular Sul En
Press Release 4 Q03 Tele Celular Sul En
 
Press Release 3 Q03 Tele Celular Sul En
Press Release 3 Q03   Tele Celular Sul EnPress Release 3 Q03   Tele Celular Sul En
Press Release 3 Q03 Tele Celular Sul En
 
Press Releases 2 Q05 En
Press Releases 2 Q05 EnPress Releases 2 Q05 En
Press Releases 2 Q05 En
 
Release 2Q00
Release 2Q00Release 2Q00
Release 2Q00
 
Press Release 2 Q02 Tele Celular Sul En
Press Release 2 Q02   Tele Celular Sul EnPress Release 2 Q02   Tele Celular Sul En
Press Release 2 Q02 Tele Celular Sul En
 
Press Release Tele Nordeste Celular 2 Q04 En
Press Release   Tele Nordeste Celular 2 Q04 EnPress Release   Tele Nordeste Celular 2 Q04 En
Press Release Tele Nordeste Celular 2 Q04 En
 
Press Release 2 Q03 Tele Celular Sul En
Press Release 2 Q03   Tele Celular Sul EnPress Release 2 Q03   Tele Celular Sul En
Press Release 2 Q03 Tele Celular Sul En
 
Press Release 2 Q00 Tele Celular Sul En
Press Release 2 Q00   Tele Celular Sul EnPress Release 2 Q00   Tele Celular Sul En
Press Release 2 Q00 Tele Celular Sul En
 
Press Release 4 Q02 Tele Celular Sul En
Press Release 4 Q02   Tele Celular Sul EnPress Release 4 Q02   Tele Celular Sul En
Press Release 4 Q02 Tele Celular Sul En
 
cit 2002%20Q3%20Fiscal%20year%20end
cit 2002%20Q3%20Fiscal%20year%20endcit 2002%20Q3%20Fiscal%20year%20end
cit 2002%20Q3%20Fiscal%20year%20end
 
omnicare annual reports 2000
omnicare annual reports  2000omnicare annual reports  2000
omnicare annual reports 2000
 
Press Release 2 Q01 Tele Celular Sul En
Press Release 2 Q01   Tele Celular Sul EnPress Release 2 Q01   Tele Celular Sul En
Press Release 2 Q01 Tele Celular Sul En
 
Q4 2006 Earnings Release
	Q4 2006 Earnings Release	Q4 2006 Earnings Release
Q4 2006 Earnings Release
 
Press Release 1 Q02 Tele Celular Sul En
Press Release 1 Q02   Tele Celular Sul EnPress Release 1 Q02   Tele Celular Sul En
Press Release 1 Q02 Tele Celular Sul En
 
computer sciences FY 2001 Q3
computer sciences FY 2001 Q3computer sciences FY 2001 Q3
computer sciences FY 2001 Q3
 

More from TIM RI

TIM Part - Apresentação Institucional - 2T20
TIM Part - Apresentação Institucional - 2T20TIM Part - Apresentação Institucional - 2T20
TIM Part - Apresentação Institucional - 2T20TIM RI
 
TIM Part - Intitutional Presentation - 2Q20
TIM Part - Intitutional Presentation - 2Q20TIM Part - Intitutional Presentation - 2Q20
TIM Part - Intitutional Presentation - 2Q20TIM RI
 
TIM - Meeting with Investors, Aug 2020
TIM - Meeting with Investors, Aug 2020TIM - Meeting with Investors, Aug 2020
TIM - Meeting with Investors, Aug 2020TIM RI
 
NDR de Junho de 2020
NDR de Junho de 2020NDR de Junho de 2020
NDR de Junho de 2020TIM RI
 
1Q20 Institutional Presentation
1Q20 Institutional Presentation1Q20 Institutional Presentation
1Q20 Institutional PresentationTIM RI
 
Apresentação Institucional 1T20
Apresentação Institucional 1T20Apresentação Institucional 1T20
Apresentação Institucional 1T20TIM RI
 
TIM - Meeting with Investors, May 20
TIM - Meeting with Investors, May 20TIM - Meeting with Investors, May 20
TIM - Meeting with Investors, May 20TIM RI
 
4Q19 Institutional Presentation
4Q19 Institutional Presentation4Q19 Institutional Presentation
4Q19 Institutional PresentationTIM RI
 
Apresentação Institucional 4T19
Apresentação Institucional 4T19Apresentação Institucional 4T19
Apresentação Institucional 4T19TIM RI
 
Apresentação do Plano Estratégico 2020-2022
Apresentação do Plano Estratégico 2020-2022Apresentação do Plano Estratégico 2020-2022
Apresentação do Plano Estratégico 2020-2022TIM RI
 
2020-2022 Strategic Plan Release
2020-2022 Strategic Plan Release2020-2022 Strategic Plan Release
2020-2022 Strategic Plan ReleaseTIM RI
 
Strategic Plan 2020-2022
Strategic Plan 2020-2022Strategic Plan 2020-2022
Strategic Plan 2020-2022TIM RI
 
Planejamento Estratégico 2020-2022
Planejamento Estratégico 2020-2022Planejamento Estratégico 2020-2022
Planejamento Estratégico 2020-2022TIM RI
 
TIM - Meeting with Investors, January-20
TIM - Meeting with Investors, January-20TIM - Meeting with Investors, January-20
TIM - Meeting with Investors, January-20TIM RI
 
Meeting with Investors, December 2019
Meeting with Investors, December 2019Meeting with Investors, December 2019
Meeting with Investors, December 2019TIM RI
 
Apresentação Institucional 3T19
Apresentação Institucional 3T19Apresentação Institucional 3T19
Apresentação Institucional 3T19TIM RI
 
Institutional Presentation 3Q19
Institutional Presentation 3Q19Institutional Presentation 3Q19
Institutional Presentation 3Q19TIM RI
 
Tim Part's Presentation - CS 2019 TechFin & Telecom Conference
Tim Part's Presentation - CS 2019 TechFin & Telecom ConferenceTim Part's Presentation - CS 2019 TechFin & Telecom Conference
Tim Part's Presentation - CS 2019 TechFin & Telecom ConferenceTIM RI
 
TIM Meeting with Investors, November 2019
TIM Meeting with Investors, November 2019TIM Meeting with Investors, November 2019
TIM Meeting with Investors, November 2019TIM RI
 
Apresentação Institucional TIM - 2T19
Apresentação Institucional TIM - 2T19Apresentação Institucional TIM - 2T19
Apresentação Institucional TIM - 2T19TIM RI
 

More from TIM RI (20)

TIM Part - Apresentação Institucional - 2T20
TIM Part - Apresentação Institucional - 2T20TIM Part - Apresentação Institucional - 2T20
TIM Part - Apresentação Institucional - 2T20
 
TIM Part - Intitutional Presentation - 2Q20
TIM Part - Intitutional Presentation - 2Q20TIM Part - Intitutional Presentation - 2Q20
TIM Part - Intitutional Presentation - 2Q20
 
TIM - Meeting with Investors, Aug 2020
TIM - Meeting with Investors, Aug 2020TIM - Meeting with Investors, Aug 2020
TIM - Meeting with Investors, Aug 2020
 
NDR de Junho de 2020
NDR de Junho de 2020NDR de Junho de 2020
NDR de Junho de 2020
 
1Q20 Institutional Presentation
1Q20 Institutional Presentation1Q20 Institutional Presentation
1Q20 Institutional Presentation
 
Apresentação Institucional 1T20
Apresentação Institucional 1T20Apresentação Institucional 1T20
Apresentação Institucional 1T20
 
TIM - Meeting with Investors, May 20
TIM - Meeting with Investors, May 20TIM - Meeting with Investors, May 20
TIM - Meeting with Investors, May 20
 
4Q19 Institutional Presentation
4Q19 Institutional Presentation4Q19 Institutional Presentation
4Q19 Institutional Presentation
 
Apresentação Institucional 4T19
Apresentação Institucional 4T19Apresentação Institucional 4T19
Apresentação Institucional 4T19
 
Apresentação do Plano Estratégico 2020-2022
Apresentação do Plano Estratégico 2020-2022Apresentação do Plano Estratégico 2020-2022
Apresentação do Plano Estratégico 2020-2022
 
2020-2022 Strategic Plan Release
2020-2022 Strategic Plan Release2020-2022 Strategic Plan Release
2020-2022 Strategic Plan Release
 
Strategic Plan 2020-2022
Strategic Plan 2020-2022Strategic Plan 2020-2022
Strategic Plan 2020-2022
 
Planejamento Estratégico 2020-2022
Planejamento Estratégico 2020-2022Planejamento Estratégico 2020-2022
Planejamento Estratégico 2020-2022
 
TIM - Meeting with Investors, January-20
TIM - Meeting with Investors, January-20TIM - Meeting with Investors, January-20
TIM - Meeting with Investors, January-20
 
Meeting with Investors, December 2019
Meeting with Investors, December 2019Meeting with Investors, December 2019
Meeting with Investors, December 2019
 
Apresentação Institucional 3T19
Apresentação Institucional 3T19Apresentação Institucional 3T19
Apresentação Institucional 3T19
 
Institutional Presentation 3Q19
Institutional Presentation 3Q19Institutional Presentation 3Q19
Institutional Presentation 3Q19
 
Tim Part's Presentation - CS 2019 TechFin & Telecom Conference
Tim Part's Presentation - CS 2019 TechFin & Telecom ConferenceTim Part's Presentation - CS 2019 TechFin & Telecom Conference
Tim Part's Presentation - CS 2019 TechFin & Telecom Conference
 
TIM Meeting with Investors, November 2019
TIM Meeting with Investors, November 2019TIM Meeting with Investors, November 2019
TIM Meeting with Investors, November 2019
 
Apresentação Institucional TIM - 2T19
Apresentação Institucional TIM - 2T19Apresentação Institucional TIM - 2T19
Apresentação Institucional TIM - 2T19
 

Press Release 1 Q00 Tele Nordeste Celular En

  • 1. FOR IMMEDIATE RELEASE Contacts: Tele Nordeste Celular Participações S.A. Thomson Financial IR Mario Gomes Peter Firestein 55.81.216.2592 Isabel Vieira Fabíola Almeida 212.701.1823 55.81.216.2594 Octavio Muniz 55.81.216.2593 TELE NORDESTE CELULAR PARTICIPAÇÕES S.A. ANNOUNCES FIRST QUARTER 2000 RESULTS Recife, Brazil (May 2, 2000) – Tele Nordeste Celular Participações S.A. (NYSE: TND) (“Tele Nordeste,” or “The Company”), the holding company controlling the operating companies serving Band A cellular telecommunication customers in the states of Piauí, Ceará, Rio Grande do Norte, Paraíba, Pernambuco and Alagoas, announced today its results for the first quarter of 2000 in accordance with Brazilian GAAP. The translation to US dollars has been presented solely for the convenience of the reader. This conversion does not imply that reais amounts actually represent such US dollar amounts or may be converted to US dollars at the rate indicated. The US dollar amounts have been converted from reais at the commercial selling rate published by the Central Bank of Brazil at March 31, 2000, which was R$1.75 to US$1.00. Operational Highlights Marketing activities during the first quarter 2000 resulted in the net addition of 125,340 customers, representing a 10.5% increase compared to the customer base at December 31, 1999. The Company had 1.3 million customers at March 31, 2000, of which 886,000 (67.5%) were contract customers and 427,000 (32.5%) were prepaid customers. Postpaid and prepaid churn for the quarter was 4.3% and 5.5%, respectively. The market share at the end of the first quarter of 2000 was estimated at 69%. Financial Highlights Tele Nordeste’s net income for the first quarter of 2000 was R$11.2 million (US$6.4 million) or R$0.033 (US$0.019) per thousand shares, compared to R$13.6 million (US$7.8 million) for the first quarter 1999. Consolidated net operating revenues for the first quarter of 2000 reached R$215.5 million (US$123.1 million), compared to R$141.7 million (US$80.9 million) for the first quarter of 1999. The Company reported consolidated EBITDA of R$74.9 million (US$42.8 million) for the first quarter of 2000, representing a 34.8% EBITDA margin over net operating revenues, compared to the R$63.8 million (US$36.5 million) EBITDA and 45.4% EBITDA margin reported for the first quarter of 1999. EBIT for the first quarter of 2000 increased to R$48.9 million (US$27.9 million) while EBIT margin dropped to 22.7% compared to EBIT of 1 www.timnordeste.com.br
  • 2. R$35.5 million (US$20.3 million) and EBIT margin of 25.5% reported for the first quarter of 1999. Select Consolidated Financial Data (in thousands of Reais) First Quarter 2000 1999 % Inc Revenue - Usage charges 131,388 94,020 39.7 - Monthly subscription payments 52,194 31,815 64.1 - Network usage charges 61,511 39,935 54.0 - Sale of goods and other revenues 34,123 12,809 166.4 Subtotal 279,216 178,579 56.4 - Value added and other indirect taxes (64,738) (38,045) 70.2 Net Operating Revenue 214,478 140,534 52.6 Cost of Services and Goods Sold - Depreciation and amortization 24,357 27,942 -12.8 - Personnel 2,743 565 385.5 - Material and services 1,529 5,141 -70.3 - Lease of circuits and related costs 34,119 31,324 8.9 - Leasing and insurance 2,222 1,465 51.7 - Handsets and accessories 31,721 6,833 364.2 - Fistel and others 6,204 4,793 29.4 Subtotal 102,895 78,063 31.8 Gross Profit 111,583 62,471 78.6 Net operating revenue for the first quarter of 2000 increased 52.6% when compared with the same quarter of the previous year. This is primarily due to the substantial increase in the average number of customers, which reached 92.1% quarter-over-quarter (from 667,000 to 1,283,000), and the increase in sales of handsets. Excluding sales of handsets, net operating revenues increased 45% quarter-over-quarter. The interconnection rate increased by 15% on December 1, 1999, and the VC1 rate increased by 12% as of February 1, 2000. These two rate increases have positively impacted net revenues for the first quarter of 2000. The lease of circuits and related costs increase of 8.9% reflects higher usage of other operators’ network by our clients, offset by discounts on leased circuits as compared to the first quarter of 1999. Other costs reflect the overall increase in operations. 2 www.timnordeste.com.br
  • 3. Operating Expenses (in thousands of Reais) First Quarter 2000 1999 % Inc Operating expenses - Selling expenses 46,565 16,894 176% - General and administrative expenses 18,247 12,047 51% - Other operating income (366) (1,822) Subtotal 64,446 27,119 138% Net financial expenses 20,973 6,467 224% Total operating expenses 85,419 33,586 154% Net operating expenses increased 154% compared to the same quarter of the prior year, from R$33.6 (US$19.2 million) in 1999, to R$85.4 million (US$48.8 million) in 2000. Selling expenses in 2000 reflect the more intense marketing and distribution activities and higher bad debt expenses. Consolidated bad debt expenses for the first quarter of 2000 amounted to R$20.7 million (US$11.8 million), representing 7.4% of gross revenue, compared with R$6.2 million for the first quarter of 1999, which represented 3.4% of gross revenue for that quarter. The Company has taken measures to reduce bad debt expenses, following the normalization of the new billing system. These measures include the outsourcing of collection activities as well as the disconnection and/or migration to the prepaid system. General and administrative expenses in 2000 were higher because of the increase in headcount when compared to the same period in 1999, when most of the administrative positions had not been filled. Financing expenses reflect the higher debt levels when compared to the first quarter of 2000 and financing costs related to sales of handsets in installments. Consolidated Statistics 2000 1999 st Contract customers at March 31 886,085 689,739 st Prepaid customers at March 31 427,167 - Total customers 1,313,252 689,739 Growth over same quarter of the previous year 90.4% 48.5% Estimated population of region (in millions) 26.2 25.8 st Cellular penetration at March 31 7.2% 3.3% Average monthly incoming minutes of use per customer during first quarter 94 101 Average monthly outgoing minutes of use per customer during first quarter 76 94 The blended average revenue per user (ARPU), net of taxes, for the first quarter of 2000, was R$51 per month, compared to R$67 per month for the first quarter of 1999. Postpaid and prepaid ARPU were R$63 and R$24, respectively, for the first quarter of 2000. 3 www.timnordeste.com.br
  • 4. Competition The Company estimates that its market share at the end of the first quarter of 2000 was approximately 69%. General handset subsidies have been discontinued as of March 1, 2000. As a result, the immediate effect was a 44% reduction in gross additions of contract and prepaid customers in March. New tariff plans are being offered to contract customers, with one-year contracts, which may include some type of subsidy on the handset price. Management understands that the retention of heavy (contract) users is the key to profitability, therefore, the marketing and distribution efforts have now been redirected towards those clients. Balance Sheet Consolidated debt at March 31, 2000, was R$377 million (US$215 million). This balance was fully comprised of Real-denominated debt, following the Company’s policy of no exposure to currency risk. The bad debt provision amounted to R$30.9 million (US$17.6 million), representing 15% of accounts receivable at March 31, 2000. Capital Expenditures During the first three months of 2000, Tele Nordeste and its subsidiaries invested R$36.1 million (US$20.6 million), mainly on network digitalization. The capex program for 2000 amounts to R$215 million and includes enhancements to the Company’s systems, new services and Internet facilities. Human Resources The number of employees at March 31, 2000, totaled 1,277, including full-time, interns and temporary employees. The customer/employee ratio increased from 711 at March 31, 1999, to 1,028 at March 31, 2000. Subsequent Events The shareholders of the operating companies approved, at their respective Annual Shareholders’ Meetings held between April 24-26, 2000, the financial statements for 1999 as well as the payment of interest on equity (dividends) as proposed by the respective management of Telasa Celular, Telpa Celular, Teleceará Celular and Telepisa Celular.. Tele Nordeste’s shareholders approved, at the Annual Shareholders’ Meeting held on April 27, 2000, the financial statements for 1999 and the payment of interest on equity (dividends) in the amount of R$8.4 million, net of withholding income tax (R$0.0251 per 1,000 shares). At the Extraordinary Shareholders’ Meeting held on April 28, 2000, the shareholders of Tele Nordeste approved the merger of 1B2B Participações S.A., the current controlling shareholder, into the Company, according to the Relevant Fact published on April 13, 2000. 1B2B Participações S.A. was formed by Bitel Participações S.A., the controlling shareholder, to allow the transfer to the Company, and later to its operating companies, of the goodwill premium paid by Bitel. This merger will be followed by another proposal to merge the six operating companies, once the necessary approval has been obtained from ANATEL. The Relevant Fact is accessible at our web site: www.timnordeste.com.br or by calling the Company’s contacts mentioned above. *****Tables to Follow***** 4 www.timnordeste.com.br
  • 5. Tele Nordeste Celular Participações S.A. Balance sheets March 31, 2000, and December 31, 1999 (In thousands of reais) Parent Company Consolidated Parent Company Consolidated Assets 03.31.2000 12.31.1999 03.31.2000 12.31.1999 Liabilities, Minority Interest and Shareholders' Equity 03.31.2000 12.31.1999 03.31.2000 12.31.2000 Current assets Current liabilities Cash equivalents 1,297 283 7,624 7,768 Accounts payable to suppliers 504 1,079 76,898 94,886 Trade accounts receivable 127 - 169,630 168,542 Financing and loans - 332,370 270,586 Inventories 15 25 44,578 28,284 Taxes payable 594 1,002 45,796 45,917 Telecommunications companies - - 36,462 32,491 Salaries and vacation pay 1,205 554 5,885 4,313 Subsidiaries 15,991 12,039 Subsidiaries 10,641 10,295 - - Taxes and contributions receivable 2,441 3,890 14,758 49,494 Telecommunications companies 3 3 9,843 7,520 Deferred income and social contribution taxes 578 173 21,677 18,088 Dividends and interest on shareholders' equity Dividends and interest on shareholders' equity - Law,9.249/95 10,373 10,340 4,401 16,751 - Receivable according to Law 9,249/95 9,632 9,568 - - Other liabilities 376 3,502 32,161 25,050 Loan to subsidiaries 11,241 18,621 - - Prepaid expenses 17 - - 6,449 23,698 26,775 507,354 465,023 Other rights 1,597 2,472 67,505 12,317 42,936 47,071 362,234 323,433 Noncurrent assets Noncurrent liabilities Financing and loans - - 45,376 53,278 Other liabilities - - 93 90 Tax incentives - - 2,746 2,679 - - 45,469 53,368 Permanent assets Minority interest - - 101,176 97,650 Investments 341,111 329,186 1 - Property, plant and equipment 4,901 4,609 654,269 644,020 Shareholders' equity 346,012 333,795 654,270 644,020 Capital stock 108,943 108,943 108,943 108,943 Profit reserves 178,922 178,922 178,922 178,922 Retained profits 77,385 66,226 77,386 66,226 365,250 354,091 365,251 354,091 388,948 380,866 1,019,250 970,132 388,948 380,866 1,019,250 970,132
  • 6. Tele Nordeste Celular Participações S.A. Income Statement For the quarters ended March 31, 2000, and March 31, 1999 (In thousands of reais) Parent Company Consolidated 03.31.2000 03.31.1999 03.31.2000 03.31.1999 Revenues Telecommunications services and sale of goods - - 279,216 178,579 Deductions Sales Taxes (ICMS, PIS and Cofins) - - (64,739) (38,045) Net revenues - - 214,477 140,534 Cost of goods sold and services rendered - - (102,895) (78,063) Gross profit - - 111,582 62,471 Operating revenues (expenses) Selling expenses - - (46,565) (16,894) Administrative and general expenses (1,807) (3,252) (18,247) (12,047) Financial expenses (57) (690) (25,005) (13,907) Financial income 734 2,320 4,032 7,440 Equity in income of subsidiaries 11,908 15,217 - - Other operating income - - 818 3,056 Other operating expenses (74) - (451) (1,234) Operating income (loss) 10,704 13,595 26,164 28,885 Nonoperating income 17 - 305 1 Nonoperating expenses (198) (2,549) Income before income and social contribution taxes 10,721 13,595 26,271 26,337 Income and social contribution taxes 439 - (11,590) (8,278) Net income before minority interest 11,160 13,595 14,681 18,059 Minority interest - - (3,521) (4,464) Net income for the quarter 11,160 13,595 11,160 13,595 Net income per lot of a thousand shares - R$ 0.03 0.04 Number of shares at March 31 (thousands) 334,399,028 334,399,028