Brazil's TIM expects investments of $5.4 bln in next three yrs

Fri Feb 8, 2013 12:12pm EST

* No. 2 wireless operator sees EBITDA growth at 5-9 pct

* New CEO takes reins as wireless market hits sharp slowdown

SAO PAULO Feb 8 (Reuters) - TIM Participaçoes SA , Brazil's second-largest wireless phone company, plans to spend 10.7 billion reais ($5.4 billion) over the next three years, compared with 3.4 billion reais in 2012.

The Brazilian unit of Telecom Italia said on Friday it expects "high-single-digit growth" of 5 to 9 percent in core profit, or EBITDA, compared with 10.9 percent 2012 growth.

The aggressive targets defy evidence that Brazil's wireless market has cooled dramatically from a recent boom. Carriers added users last quarter at a fifth the rate of a year earlier, and TIM's net revenue grew at the slowest pace in nearly two years.

The execution of the three-year business plan will also fall to the new chief executive, Rodrigo Abreu, who was tapped on Thursday to replace Andrea Mangoni.

Mangoni took over as TIM's chief executive when former CEO Luca Luciani resigned in May amid an investigation into fraud at parent company Telecom Italia.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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