SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO
RULE 13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE
ACT OF 1934
FOR THE MONTH OF AUGUST 2000
(Commission File No. 001-14489)
TELE CENTRO OESTE CELULAR PARTICIPACOES S.A.
--------------------------------------------
(Exact name of registrant as specified in its charter)
TELE CENTRO OESTE CELLULAR HOLDING COMPANY
------------------------------------------
(Translation of registrant's name in English)
SCS-QUADRA 2, BLOCO C, EDIFICIO ANEXO-TELEBRASILIA CELULAR
----------------------------------------------------------
-7 ANDAR, BRASILIA, D.F.
------------------------
FEDERATIVE REPUBLIC OF BRAZIL
-----------------------------
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.)
Form 20-F X Form 40-F
--- ---
(Indicate by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing the
information to the
Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.)
Yes No X
--- ---
Page 1 of 11
<PAGE>
TCOC3: R$ 7,95/1,000 shares
TCOC4: R$
7,14/1,000 shares
TRO: US$ 12 1/4/ADR (1 ADR = 3,000 shares)
INVESTOR RELATIONS:
ARTHUR FONSECA - MAILTO:[email protected]
FLAVIA MENEZES - MAILTO:[email protected] WEBSITE
+55 61 313-7765 HYPERLINK HTTP://WWW.TCO.NET.BR
ANNOUNCES RESULTS FOR THE
FIRST HALF OF 2000
TCO EXPANDS BRASILIA, 04 August 2000-Tele Centro Oeste Celular Participacoes
ITS NETWORK S.A. (NYSE: TRO; IBOVESPA: TCOC3/TCOC4) announced today its
AND KEEPS consolidated results relative to the first half of 2000. The
PROFITABILITY consolidated results include the results of its subsidiaries
Telebrasilia Celular S.A., Telegoias Celular S.A., Telemat
Celular S.A., Telems Celular S.A., Teleron Celular S.A.,
Teleacre Celular S.A. and Norte Brasil Telecom S.A., - NBT.
During the first half the company obtained a consolidated net
profit of R$ 41.86 million, and earnings before taxes, interest,
depreciation and amortization (EBITDA) of R$ 163.22 million. The
102% increase in the company's client base relative to the same
period in the previous year provided accumulated gross operating
revenues of R$ 518.23 million and accumulated net operating
revenues of R$ 411.20 million, which represents a 51.3% increase
compared to the first half of 1999.
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<PAGE>
TCO LAUNCHES As of July 05, 2000, TCO clients can also use wireless Internet
WIRELESS access. The new services use CSD technology - CIRCUIT SWITCHED
INTERNET ACCESS DATA-and WAP, the WIRELESS APPLICATION PROTOCOL. Basically the
CSD systems allow data to be transmitted at 9,600 bits per
second via notebook- and palmtop-type computers, as well as
desktop machines. This service allows Internet navigation, email
download and the use of other applications. The WAP services
include simplified Internet access, which require cellular
phones equipped with a micro-browser. Manufacturers claim that
in early September they will launch WAP / TDMA personal cellular
units. Initially these new services will be available in
Brasilia, gradually to be extended to other regions where TCO
maintains operations. While the cost of communication is still
being calculated, it is expected to be equivalent to the
standard voice-calls. In order to implement these services, TCO
has installed equipment that transmits data within the wireless
cellular system. Technical support is provided by
infra-structure giants Nortel and Ericsson, and involve
investments around R$ 15 million.
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<PAGE>
OPERATING PERFORMANCE
CLIENT BASE - At the end of the first half of 2000, TCO reached the mark of
CONTINUOUS 1,224,707 subscribers. On a consolidated basis, this number
GROWTH increased by 102% in the last 12 months, mainly as a result of
the introduction of the pre-paid service in the end of the first
half of 1999, and to the exceptional growth experienced by NBT's
client base. Area 7 alone grew 80.5% compared to the same period
of 1999.
<TABLE>
<CAPTION>
------------------------------------------------
2ND Q 1ST Q 2ND Q
SERVICE ACCESS 2000 2000 1999
------------------------------------------------
<S> <C> <C> <C>
TOTAL TCO 1,224,707 1,021,36 606,412
TOTAL - AREA 7 1,094,766 939,176 606,412
Pre 590,836 413,900 15,330
Post 487,229 508,584 573,215
Rural 16,701 16,692 17,867
TOTAL - AREA 8 129,941 82,193 -
Pre 91,524 56,155 -
Post 38,417 26,038 -
------------------------------------------------
</TABLE>
DIGITIZATION The carrier operating Area 8 uses 100% digital TDMA technology.
The carriers operating Area 7 use digital TDMA technology and
analog AMPS, and together presented an access digitization rate
of 83.4%. This level is 76.6% higher than the one obtained at
the end of the first half of 2000.
NETWORK The carriers operating Area 7 were using 573 of TCO's Radio Base
STRUCTURE Stations in service at the end of the first half of 2000, the
highest coverage in the region. In essence, Radio Base Stations
connect the Mobile Stations to the Switching and Control Centers
using Radio transceptors and antennas. Presently TCO owns 12
Switching and Control Centers in Area 7. In Area 8, carrier NBT
had 91 Radio Base Stations and 8 Switching and Control Centers
at the end of the first half of 2000.
TRADE At the end of the first half of 2000, TCO owned 31 proprietary
stores, 685 accredited representatives and 6,187 points of sale
of pre-paid cards in Area 7. In addition to the traditional
points of sale, lottery houses and Bradesco cash dispensers also
supply cards to consumers, maintaining the required capilarity
required to meet its clients needs. In Area 8, TCO's trade
structure via NBT has 12 proprietary stores, 180 accredited
representatives and 1,287 points of sale for pre-paid cards.
COMPETITION TCO has been very successful both in Area 7 and in Area 8
regarding the strategies employed not only to keep its good
institutional image, but also to sustain the quality of the
service it renders and to enlarge its market share. As a result
of the differentials in service and its 100% digitization rate,
allied to a transparent client relationship, TCO's market share
went up from 77% in the two first quarters of 1999 to nearly 80%
at the end of the first half of 2000 in Area 7, while in Area 8
the company has also been gaining participation in the market -
NBT reached a market share of 22%.
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<PAGE>
EVOLUTION Given the ongoing technological changes, TCO has been maturing
strategies to guarantee the quality of the services it renders
and the diversity demanded by the market. Therefore, besides
operating in the voice segment, the Company has also started
activities in the data transmission segment. It launched its
first product in the data transmission segment back in the first
quarter of this year, the "short-message" service. Only then
were both the CSD (CIRCUIT SWITCHED DATA) and the WAP (WIRELESS
APPLICATION PROTOCOL) launched.
FINANCIAL PERFORMANCE
<TABLE>
<CAPTION>
R$ Million
------------------------------------------------
1ST H 1ST H VARIATION
CONSOLIDATED 2000 1999 (%)
------------------------------------------------
<S> <C> <C> <C>
Gross operating revenue 518.2 357.2 45.1
Net operating revenue 411.2 271.8 51.3
Operating profit 100.6 81.1 24.0
Period's net profit 41.9 48.6 -13.8
EBITDA 163.2 118.0 38.3
Indebtedness * 39.7% 19.9% 99.5
------------------------------------------------
* Indebtedness = (Outstanding liability +
Long-term liability) / Liability
</TABLE>
OPERATING The gross operating revenue in the first half of 2000 increased
REVENUES 45% compared to the same period in the previous year. This
increase resulted mainly from the expansion of the client base,
which in turn was a reaction to the introduction of the pre-paid
service and to the participation of NBT's revenues in the
consolidated results. Utilization revenues remained unaltered in
spite of the expansion of the client base, due mainly to a
reduction observed in the outgoing traffic, a consequence of the
introduction of the pre-paid service. On the other hand, the
volume of revenues obtained from interconnection climbed 66%
against the same period in 1999, partly due to the increased
TU-M rate to R$ 0.2283 in November of 1999. Retail of goods
generated gross accumulated revenues near R$ 79.1 million in the
half.
OPERATING TCO's most expressive operating expenses are cost of merchandise
EXPENSES sold, network usage, depreciation and reserves for doubtful
payers. All of these items rose in the first half of 2000 due
mainly to the expansion observed in the client base. The cost of
merchandise sold in the half reached R$ 67.5 million.
EBITDA The EBITDA calculated for TCO in the first half of 1999 was
43.4% and for the first half of 2000 was 39.7%, which made
evident the company's capacity to generate cash using its own
operating assets. The EBITDA calculated for the first half of
2000 was R$ 163.2 million, 38.3% higher than the one calculated
in the same period of the previous year.
DEPRECIATION Depreciation and amortization expenses totaled R$ 54.4 million
AND in the half. Depreciation is calculated using the linear method,
AMORTIZATION considering the goods' useful lives. The pre-operating expenses
of NBT incurred until December 31, 999, were deferred and will
be amortized along a 10-year period.
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<PAGE>
AMORTIZATION The amortization referring to the premium on the incorporation
OF THE PREMIUM of Coverage Participacoes S.A. is included in the nonoperating
ON THE results. The premium on the incorporation of Coverage,
INCORPORATION established at R$ 322.7 million, is being amortized on a monthly
OF COVERAGE basis, along a 5-year period counting from December, 1999.
BAD DEBTS The bad debts/write-offs in the first half of 2000 totaled R$22
million, representing 5.4% of the net operating revenues. The
reserves are formed to back those credits whose recovery is
considered unlikely. The methodology involves providing for 100%
of the credits which have been overdue for over 90 days. On
those credits not yet billed, on the payable credits and on the
credits overdue for over 90 days, the percentage ratio obtained
from the historic series of the recorded write-offs is applied
against the gross revenues of the previous 12 months.
INVESTMENTS During the first half of 2000 TCO invested R$ 53.2 million in
Area 7, mainly in projects associated with the expansion of its
wireless cellular telephone network and in the modernization of
the telecommunication services. In order to install technical
equipment in Area 8, NBT invested R$ 38 million in the first
half of 2000. The estimated amount to be invested in the year
2000 is approximately R$ 200 million consolidated, among its own
resources and financed capital to be used to expand the network
and to modernize services. Of this total, a maximum of R$ 50
million shall be directed to NBT.
PERFORMANCES IN THE QUARTERS
<TABLE>
<CAPTION>
R$ thousands
------------------------------------------------------
CONSOLIDATED 2ND Q 1ST Q VARIATION
2000 2000 (%)
------------------------------------------------------
<S> <C> <C> <C>
Gross operating revenue 274,814 243,418 12,9
Net operating revenue 217,506 193,696 12,3
Operating profit 59,022 41,551 42,0
Period's net profit 25,770 16,089 60,2
EBITDA 92,575 70,641 31,0
Depreciation and 27,734 26,617 4,2
amortization
Reserves for doubtful 9,214 12,791 -28,0
payers / write-offs
Financial revenues 19,668 13,654 44,0
Financial expenses (25,489) (16,128) 36,7
------------------------------------------------------
</TABLE>
..............................................................................
** FINANCIAL STATEMENTS TO FOLLOW **
Page 6 of 11
<PAGE>
TELE CENTRO OESTE CELULAR PARTICIPACOES S.A.
BALANCE SHEETS
June 30, 2000 and March 31, 1999
(In thousands of Reais)
<TABLE>
<CAPTION>
COMPANY CONSOLIDATED
-------------------------------------------
30/06/00 31/03/00 30/06/00 31/03/00
-------------------- --------------------
<S> <C> <C> <C> <C>
ASSETS
-------------------- --------------------
CURRENT ASSETS 305,508 151,466 776,147 585,366
-------------------- --------------------
Cash and cash equivalents 21 59 8,231 2,763
Short-term investments 189,833 60,617 353,498 187,070
Marketable securities 15,429 7,306 149,233 129,763
Accounts receivable from - - 148,550 168,147
services
Inventories - - 19,221 21,468
Loans and financing - - 2,754 3,797
Deferred and recoverable 27,842 22,102 45,381 53,561
taxes
Interest on own capital 66,493 57,517 - -
receivable
Other assets 5,890 3,865 49,279 18,797
-------------------- --------------------
NONCURRENT ASSETS 1,476 1,046 4,373 4,513
-------------------- --------------------
Deferred and recoverable - - 451 451
taxes
Loans with related parties 1,466 896 - -
Other assets 10 150 3,922 4,062
-------------------- --------------------
PERMANENT ASSETS 1,195,44 91,146,122 1,078,393 1,072,123
-------------------- --------------------
Investments 907,359 841,839 3,716 3,716
Property, plan and equipment 3,045 3,104 748,934 725,084
Deferred assets 285,045 301,179 325,743 343,323
-------------------- --------------------
TOTAL
1.502.433 1.298.634 1.858.913 1.662.002
==================== ====================
</TABLE>
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<PAGE>
TELE CENTRO OESTE CELULAR PARTICIPACOES S.A.
BALANCE SHEETS
June 30, 2000 and March 31, 1999
(In thousands of Reais)
<TABLE>
<CAPTION>
COMPANY CONSOLIDATED
-------------------------------------------
30/06/00 31/03/00 30/06/00 31/03/00
-------------------- --------------------
<S> <C> <C> <C> <C>
LIABILITIES AND SHAREHOLDERS'
EQUITY
-------------------- --------------------
CURRENT LIABILITIES 389,230 223,204 660,927 479,986
-------------------- --------------------
Personnel, social charges 1,847 1,440 7,313 6,911
and benefits payable
Suppliers 794 764 86,533 90,662
Indirect taxes - - 56,314 40,126
Income taxes 10 10 3,743 8,120
Income participation 5,651 35,356 18,211 46,377
Loans and financing 378,152 185,581 461,295 264,655
Concession area 8 - - 17,940 17,169
Other obligations 2,776 53 9,578 5,966
-------------------- --------------------
NONCURRENT LIABILITIES 56,725 44,722 70,727 65,070
-------------------- --------------------
Provision for contingencies 3,631 2,014 7,976 6,619
Suppliers - - 558 558
Income taxes - - 241 241
Loans with related parties 21,769 12,273 - -
Loans and financing 31,325 30,435 44,012 40,483
Concession area 8 - - 17,940 17,169
PARTICIPATION OF MINORITY - - 70,665 86,123
SHAREHOLDERS
-------------------- --------------------
SHAREHOLDERS' EQUITY 1,056,352 1,030,582 1,056,353 1,030,582
-------------------- --------------------
Capital 303,100 303,100 303,100 303,100
Capital reserve 322,742 322,742 322,743 322,742
Income reserve 125,455 125,455 125,455 125,455
Accumulated earnings 305,055 279,285 305,055 279,285
CAPITALIZABLE FUNDS 126 126 241 241
-------------------- --------------------
TOTAL 1,502,433 1,298,634 1,858,913 1,662,002
==================== ====================
</TABLE>
Page 8 of 11
<PAGE>
TELE CENTRO OESTE CELULAR PARTICIPACOES S.A.
BALANCE SHEETS
June 30, 2000 and March 31, 1999
(In thousands of Reais)
<TABLE>
<CAPTION>
COMPANY CONSOLIDATED
---------------------- ---------------------
30/06/00 30/06/99 30/06/00 30/06/99
---------------------- ---------------------
<S> <C> <C> <C> <C>
GROSS OPERATING REVENUE - - 518,232 357,185
GROSS REVENUE DEDUCTIONS - - (107,030) (85,371)
---------------------- ---------------------
NET OPERATING REVENUE - - 411,202 271,814
COST OF SERVICES RENDERED - - (203,384) (114,199)
---------------------- ---------------------
GROSS INCOME - - 207,818 157,615
OPERATING INCOME (EXPENSES) 80,264 49,007 (98,952) (81,303)
Commercialization of services - - (59,763) (55,255)
General and administrative (14,068) (6,259) (37,500) (25,940)
expenses
Equity pick-up 96,512 55,058 - -
Other operating income expenses (2,180) 208 (1,689) (108)
net
---------------------- ----------------------
OPERATING INCOME BEFORE FINANCIAL 80,264 49,007 108,866 76,312
REVENUES (EXPENSES)
Financial result, net (14,565) 362 (8,295) 4,792
---------------------- ---------------------
OPERATING INCOME 65,699 49,369 100,571 81,104
NONOPERATING INCOME (EXPENSES), (32,423) (1) (25,539) (5,804)
NET
---------------------- ---------------------
INCOME BEFORE TAXATION AND 33,276 49,368 75,032 75,300
PARTICIPATION
Income tax and social 8,821 (617) (26,125) (26,445)
contribution tax on income
Employees's participation (238) (183) (884) (738)
Participation of the minority - - (9,530) (8,865)
shareholders
---------------------- ---------------------
NET INCOME BEFORE REVERSAL OF 41,859 48,568 38,493 39,252
INTEREST ON OWN CAPITAL
---------------------- ---------------------
</TABLE>
Page 9 of 11
<PAGE>
<TABLE>
<CAPTION>
COMPANY CONSOLIDATED
------------------------ ---------------------
30/06/00 30/06/99 30/06/00 30/06/99
------------------------ ---------------------
<S> <C> <C> <C> <C>
Reversal of interest on own - - 3,366 9,316
capital
------------------------ ---------------------
NET INCOME FOR THE YEAR/PERIOD 41,859 48,568 41,859 48,568
======================== =====================
SHARES IN CIRCULATION ON THE
BALANCE SHEET DATE (THOUSANDS) 364,399,028 334,399,028
NET INCOME PER LOT OF THOUSAND 0.1149 0.1452
SHARES (R$)
</TABLE>
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<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Tele Centro Oeste Cellular Holding Company
Date: May 5, 2000 By: /S/ MARIO CESAR PEREIRA DE ARAUJO
------------------------------------
Name: Mario Cesar Pereira de Araujo
Title: President
Page 11 of 11
