Tim Participacoes SA, Brazil’s second-biggest mobile-phone operator by market share, fell the most in two months after fourth-quarter earnings trailed analysts’ estimates and its chief executive officer resigned.
Shares fell 2.1 percent to 8.57 reais at the close of trading in Sao Paulo, the biggest one-day decline since Dec. 4. The stock contributed the most to the drop in the MSCI Brazil/Telecommunication Services Index, which sank 1.3 percent.
Tim’s fourth-quarter net income rose 16 percent from a year earlier to 462.6 million reais ($232.3 million), according to a regulatory filing late yesterday. Banco Santander SA projected net income of 499.2 million reais while Bradesco BBI forecast earnings of 465 million reais, according to research reports published today.
Tim also announced that shareholders will vote on a dividend increase in April and that CEO Andrea Mangoni will resign effective March 4. Mangoni was named interim CEO last May after Luca Luciani stepped down.
“What made the shares fall was this unexpected transition in the administration,” Roger Oey, an analyst at Bes Securities, said by phone from Sao Paulo. “Him leaving doesn’t change the strategy, but why didn’t they announce someone else immediately? The uncertainty is what made the stocks drop.”
The company’s shares have declined 10 percent in the past year while the Bovespa fell 9.6 percent in the same period.