BRAZIL · COMPANIES
Key Facts
- The company TIM S.A. is a Brazilian mobile carrier with 61.6 million mobile customers.
- The profit Net profit fell 18% to about US$178 million in the third quarter.
- The sales Revenue rose 5.3% to about US$1.27 billion, with fixed-service revenue up 30%.
- The US link TIM’s shares trade in São Paulo and in New York, under the ticker TIMB.
- Power Index Brazil ranks 1st of 14 in The Rio Times Latin America Power Index, with 74.2 points (November 2026 edition).
TIM, a major Brazilian mobile carrier, earned 18% less net profit in the third quarter of 2026, even as its sales grew. Net profit fell to R$991 million (about US$178 million) from R$1,208 million (about US$216 million) a year earlier.
For US readers, TIM matters because its American depositary receipts, or ADRs, trade on the New York Stock Exchange under the ticker TIMB. ADRs are US-traded certificates that stand for shares of a foreign company.
What Happened
TIM S.A. published its third-quarter results after the market closed on Monday 9 November 2026. Net revenue rose 5.3% to R$7.07 billion (about US$1.27 billion), and the company said the results keep it in line with its 2026 targets.
Normalised EBITDA, a measure of operating earnings before interest, tax, depreciation and amortisation that strips out one-off items, rose 6.7% to R$3,701 million (about US$663 million). Its margin, the share of revenue left as operating earnings, widened 0.7 points to 52.4%.
Reported EBITDA, with the one-off items left in, rose only 0.5% to R$3,486 million (about US$625 million). The gap is mostly a R$207 million (about US$37 million) one-off fair-value accounting adjustment tied to TIM’s purchase of I-Systems, a company it acquired, plus R$7.8 million (about US$1.4 million) of consulting fees.
Normalised net profit fell 7.8% to R$1,113 million (about US$199 million), or R$0.47 per share (about US$0.08). A year earlier it was R$0.50 per share.
Where Growth Came From
Mobile service revenue rose 4.0% to R$6.45 billion (about US$1.16 billion). Customers on monthly postpaid plans grew 5.2% to 34.0 million, while prepaid customers, who pay as they go, fell 9.0% to 27.6 million.
Fixed service revenue jumped 30.1% to R$430 million (about US$77 million). TIM Ultrafibra, its home broadband service, reached 931,000 customers (up 13.2%).
Fixed revenue also reflects V8. Tech, a technology company TIM now consolidates.
TIM said stronger competition, especially in the first half, led to bigger discounts to keep customers. It also said that price rises applied through the year helped revenue.
Why Profit Fell
TIM declared R$515 million (about US$92 million) in interest on capital, a tax-deductible way for Brazilian companies to pay shareholders, against R$800 million (about US$143 million) a year earlier. That shrank its tax shield, and income tax and social contribution, a profit-linked levy, rose on a reported basis to R$70 million (about US$13 million) from R$13 million (about US$2 million).
Net financial expense rose 18.0% to R$525 million (about US$94 million), mainly because of higher interest on leases and lower interest income on cash. Depreciation and amortisation also rose after TIM consolidated I-Systems.
Cash and Debt
Operating free cash flow, the cash left after operating costs and investment, rose 3.0% to R$1,876 million (about US$336 million). Capital spending was R$978 million (about US$175 million), up 0.4%.
Total net debt, which is borrowings minus cash and includes lease obligations, was R$11.1 billion (about US$1.99 billion), or 0.78 times normalised EBITDA. TIM announced or paid R$1.56 billion (about US$280 million) in interest on capital and share buybacks through September.
For earlier coverage of Brazil’s mobile market, see our reports on Vivo’s second-quarter profit and on Claro and its parent América Móvil. Both help put TIM’s results in context.
What It Means for You
If you hold TIM’s ADRs or Brazil funds, the quarter shows a carrier that is growing sales and cash flow while higher taxes and financing costs squeeze profit. The quarter also shows how much TIM’s profit depends on the size of its interest-on-capital payments.
The shift from prepaid to postpaid plans points to customers moving to monthly contracts, which usually bring steadier revenue. Competition for those customers is already costing TIM in discounts.
What Is Not Known
It is not yet clear whether TIM will declare more interest on capital before the year ends, which would cut its tax bill again. It is also not known how much of the revenue growth comes from price rises that competitors may match.
It is also not clear how much V8. Tech and I-Systems added to growth on their own.
How profit moves in the fourth quarter will depend on taxes and financing costs as much as on sales.
More: Brazil news in English, every day from The Rio Times.
Frequently Asked Questions
How Much Profit Did TIM Make?
Net profit was R$991 million (about US$178 million) in the third quarter of 2026, down 18% from a year earlier. Normalised net profit, which strips out one-off items, was R$1,113 million (about US$199 million).
Why Did TIM’s Profit Fall?
TIM declared less interest on capital, which raised its income tax bill. Its net financial expense also rose 18.0%, and an accounting adjustment from the I-Systems purchase hit reported earnings.
Where Does TIM Trade in the United States?
TIM’s American depositary receipts trade on the New York Stock Exchange under the ticker TIMB. Its shares trade in São Paulo as TIMS3.
How Many Customers Does TIM Have?
TIM had 61.6 million mobile customers at the end of September 2026, down 1.7% from a year earlier. Postpaid customers rose 5.2% to 34.0 million, while prepaid customers fell 9.0% to 27.6 million.
Sources: TIM S.A., 3Q26 Earnings Release (investor relations), 9 November 2026; RT, a financial data provider, USD/BRL close of 10 November 2026 (5.58 reais per US dollar), used for all conversions.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error
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