* Cost controls help lift net income 12 pct from year ago
* Revenue growth remains modest as consumers turn wary
SAO PAULO, July 31 TIM Participaçoes SA
, Brazil's second-largest wireless phone company,
posted a 12 percent rise in second-quarter profit, beating
forecasts on strong cost controls.
Profit at the Brazilian unit of Telecom Italia
rose from a year earlier to 386 million reais ($170 million),
according to a late Tuesday securities filing, above an average
estimate of 337 million reais in a Reuters poll.
Operating expenses rose 6 percent, less than inflation in
the 12 months through June, due to a smaller marketing and sales
budget. Mobile service revenue rose 5.6 percent from a year
earlier, down from double-digit growth last year, but edging up
from the first quarter.
Accelerating inflation and fragile economic growth have put
Brazilians on edge this year, dragging consumer confidence lower
in 13 of the last 15 months and cooling an explosion in
cellphone subscriptions in recent years.
Lower interconnection rates for calls to mobile phones also
dragged on TIM's earnings before interest, taxes, depreciation
and amortization, a gauge of operating profit known as EBITDA.
EBITDA rose 2 percent from a year ago to 1.232 billion
reais, just below an average forecast of 1.246 billion reais.
TIM shares rose more than 1 percent in opening Sao Paulo
trading on Wednesday.