Tim Participacoes SA, Brazil’s second-biggest mobile-phone operator by market share, fell the most in seven weeks after fourth-quarter earnings trailed analysts’ estimates and its chief executive officer resigned.
Shares fell 2.3 percent to 8.55 reais in at 12:03 p.m. in Sao Paulo, after earlier retreating as much as 2.6 percent for the biggest intraday decline since Dec. 18. The stock contributed the most to the drop in the MSCI Brazil/Telecommunication Services Index, which sank 1.6 percent.
Tim’s fourth-quarter net income rose 16 percent from a year earlier 462.6 million reais ($232.6 million), according to a regulatory filing late yesterday. Banco Santander SA expected net income of 499.2 million reais, while Bradesco BBI forecast earnings of 465 million reais, according to research reports dated today.
Tim also announced shareholders will vote on a dividend increase in April, and that CEO Andrea Mangoni will resign effective March 4. The company’s shares have declined 10 percent in the past year, while the Bovespa fell 9.7 percent in the same period.
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