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Telecom Italia Rsp
Earnings Release • May 7, 2025
4448_rns_2025-05-07_91417b98-2c7c-45cf-81ff-aff6e51e66a7.pdf
Earnings Release
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TIM Group Q1 2025 Financial & Operating figures
Index
TIM Enterprise
Key Financials TIM Consumer TIM Brasil TIM Enterprise P&L Balance Sheet-Assets Cash Flow Net Debt Cash Flow & Net Debt
Balance Sheet- Liabilities
Disclaimer
The Q1 '25 Financial Results have been extracted or derived, with the exception of some data, from the Financial Information at March 31, 2025 of the TIM Group examined and approved by the TIM Board of Directors on 7 May 2025, which has been prepared in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board and endorsed by the EU (designated as "IFRS").
The accounting policies and consolidation principles adopted in the preparation of the Q1 '25 Financial Results of the TIM Group are the same as those adopted in the TIM Group Annual Audited Consolidated Financial Statements as of 31 December 2024, to which reference can be made, except for the amendments to the standards issued by IASB and adopted starting from 1 January 2025.
In particular, in the Q1 '25 Financial Results, the Sparkle group has been classified, in accordance IFRS 5, as Discontinued operations, as all the condition necessary for the completion of the sale are met. Therefore, the TIM Domestic perimeter do not include Sparkle group, unless otherwise specified.
In order to provide a better understanding of business performance, organic Q1 2024 like-for-like data are presented. Such Q1 2024 data includes Sparkle group as a Discontinued Operation (as required by IFRS 5 for comparison purposes), as well as the NetCo transaction as if it had occurred at the beginning of the reporting period (January 1). In addition, the Organic Like-for-Like Information excludes non-recurring items. Please note that the Q1 '25 and the Q1 '24 Financial Results of the TIM Group are unaudited.
Cash flows and Net Debt After Lease are based on actual results either for 2025 and for 2024.
Alternative Performance Measures
The TIM Group, in addition to the conventional financial performance measures established by IFRS, uses certain alternative performance measures for the purposes of enabling a better understanding of the performance of operations and the financial position of the TIM Group. In particular, such alternative performance measures include: EBITDA, EBIT, Organic change and impact of non-recurring items on revenue, EBITDA and EBIT; EBITDA margin and EBIT margin; net financial debt (carrying and adjusted amount), Equity Free Cash Flow, Operating Free Cash Flow (OFCF) and Operating Free Cash Flow (net of licenses). Moreover, following the adoption of IFRS 16, the TIM Group uses the following additional alternative performance indicators: EBITDA After Lease ("EBITDA-AL"), Adjusted Net Financial Debt After Lease and Equity Free Cash Flow After Lease.
Such alternative performance measures are unaudited.
The information contained herein should not be viewed as complete and exhaustive.
Key Financials
ORGANIC figures excluding Sparkle (1), IFRS 16 & After Lease view, €m
| STATE PARTY LAL | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | FY '24 | Q1 '24 comparable |
Q1 '25 | Change YoY abs |
Change YoY % |
Q1 '24 | Q1 '25 | |
| REVENUES | 3.333 | 3.380 | 3.364 | 3.623 | 13.700 | 3.189 | 3.276 | 87 | 2.7 | 33 | 51 |
| TIM Domestic | 2.209 | 2.265 | 2.326 | 2.569 | 9.369 | 2.209 | 2.245 | 36 | 1.6 | 33 | 21 |
| o/w TIM Consumer (2) | 1.481 | 1.490 | 1.556 | 1.551 | 6.078 | 1.481 | 1.485 | 4 | 0.3 | । ਦ | 28 |
| o/w TIM Enterprise (2) | 727 | 776 | 770 | 1.018 | 3.291 | 727 | 760 | 33 | 4.5 | 19 | 23 |
| TIM Brasil | 1.134 | 1.123 | 1.047 | 1.062 | 4.366 | ਰੇਰੇ ਹ | 1.038 | 48 | 4.9 | ||
| SERVICE REVENUES | 3.109 | 3.172 | 3.165 | 3.300 | 12.746 | 2.970 | 3.069 | gg | 3.3 | 33 | 51 |
| TIM Domestic | 2.020 | 2.092 | 2.158 | 2.293 | 8.563 | 2.020 | 2.063 | 43 | 2.1 | 33 | 21 |
| o/w TIM Consumer (2) | 1.357 | 1.374 | 1.437 | 1.378 | 5.546 | 1.357 | 1.356 | (1) | (0.1) | 15 | 28 |
| o/w TIM Enterprise (2) | 663 | 717 | 722 | ਰੇ15 | 3.017 | 663 | 707 | 44 | 6.6 | । ਰੇ | 23 |
| TIM Brasil | 1.099 | 1.088 | 1.016 | 1.015 | 4.218 | ರಿಕೆಯ | 1.013 | 53 | 5.6 | ||
| EQUIPMENT | 224 | 208 | 199 | 323 | 954 | 219 | 207 | (12) | (5.5) | ||
| TIM Domestic | 189 | 173 | 168 | 276 | 806 | 189 | 182 | (7) | (3.7) | ||
| TIM Brasil | 35 | 35 | 31 | 47 | 148 | 30 | 25 | (5) | (17.7) | ||
| OPEX | 2.338 | 2.279 | 2.263 | 2.564 | 9.444 | 2.262 | 2.296 | 34 | 1.5 | (486) | (432) |
| TIM Domestic | 1.747 | 1.724 | 1.750 | 2.041 | 7.262 | 1.747 | 1.764 | 17 | 1.0 | (486) | (432) |
| TIM Brasil | ਟਰੇਰੇ | 563 | 520 | 529 | 2.211 | 523 | 540 | 17 | 3.2 | ||
| EBITDA | ਰੇਰੇਟ | 1.101 | 1.101 | 1.059 | 4.256 | 927 | 980 | 53 | 5.7 | (453) | (381) |
| TIM Domestic | 462 | 541 | 576 | 528 | 2.107 | 462 | 481 | 19 | 4.1 | (453) | (381) |
| TIM Brasil | 535 | 560 | 527 | 533 | 2.155 | 467 | 498 | 31 | 6.8 | ||
| EBITDA After Lease | 824 | 935 | 933 | 897 | 3.589 | 773 | 815 | 42 | 5.4 | (453) | (381) |
| TIM Domestic | 420 | 498 | 528 | 485 | 1.931 | 420 | 437 377 |
17 22 |
4.0 6.5 |
(453) | (381) |
| TIM Brasil | 406 | 437 | 407 | 414 | 1.664 | 355 | |||||
| CAPEX net of licences | 517 | 383 | 358 | 736 | 1.994 | 485 | 457 | (28) | (5.8) | ||
| TIM Domestic (3) TIM Brasil |
265 252 |
220 163 |
215 143 |
514 222 |
1.214 780 |
265 220 |
240 217 |
(25) (3) |
(9.4) | ||
| (1.2) | |||||||||||
| CAPEX on Revenues (%) | 15.5% | 11.3% 9.7% |
10.6% | 20.3% | 14.6% | 15.2% | 13.9% | (1.3 p.p.) | |||
| TIM Domestic TIM Brasil |
12.0% 22.2% |
14.7% | 9.2% 14.0% |
20.0% 20.7% |
13.0% 17.9% |
12.0% 22.2% |
10.7% 20.9% |
(1.3 p.p.) (1.3 p.p.) |
|||
| EBITDA AL - CAPEX net of licences TIM Domestic |
307 155 |
552 278 |
575 313 |
161 -29 |
1.595 717 |
288 155 |
358 197 |
70 42 |
24.3 27.1 |
||
| TIM Brasil | 154 | 274 | 264 | 192 | 884 | 135 | 160 | 25 | 19.2 |
(1) Excluding non-recurring items. Comparable base also excluding exchange rate fluctuations (avg. exchange-rate 6.16 R\$/€ in Q1 '25) (2) TIM Consumer and TIM Enterprise revenues net of mutual intercompany (no impact on EBITDA) (3) CAPEX net one off separation (4) Q1 '25 including TSA (€11m on revenues and service revenues)
TIM Consumer
€m, IFRS 16
| Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | FY '24 | Q1 '25 | Change YoY abs |
Change YoY % |
|
|---|---|---|---|---|---|---|---|---|
| REVENUES | 1.481 | 1.490 | 1.556 | 1.551 | 6.078 | 1.485 | 4 | 0.3 |
| SERVICE REVENUES | 1.357 | 1.374 | 1.437 | 1.378 | 5.546 | 1.356 | (1) | (0.1) |
| Retail (Consumer+SMB) | 1.228 | 1.241 | 1.242 | 1.230 | 4.941 | 1.216 | (12) | (1.0) |
| Wholesale & other | 114 | 118 | 165 | 117 | 514 | 112 | (2) | (1.8) |
| o/w MVNOs | 64 | 57 | 58 | 47 | 226 | 67 | 3 | 4.8 |
| o/w VISE MSA/TSA |
21 15 |
33 15 |
8 0 30 |
36 31 |
170 91 |
21 28 |
0 13 |
0.0 86.7 |
| EQUIPMENT & HANDSETS | 124 | 116 | 119 | 173 | 532 | 129 | 5 | 4.0 |
| Fixed lines ('000) o/w Consumer |
7.414 6.473 |
7.323 6.389 |
7.245 6.321 |
7.169 6.254 |
7.169 6.254 |
7.111 6.205 |
(303) (268) |
(4.1) (4.1) |
| Broadband lines ('000) (2) | 6.783 | 6.713 | 6.655 | 6.167 | 6.167 | 6.127 | (656) | (9.7) |
| o/w Consumer (2) | 5.960 | 5.890 | 5.835 | 5.349 | 5.349 | 5.315 | (645) | (10.8) |
| UBB lines ('000) | 5.438 | 5.448 | 5.455 | 5.478 | 5.478 | 5.512 | 74 | 1.4 |
| Churn rate % (3) | 4.0% | 3.8% | 3.6% | 3.9% | 15.2% | 3.7% | (0.3 p.p.) | |
| o/w Consumer | 3.9% | 3.7% | 3.6% | 3.9% | 15.1% | 3.6% | (0.3 p.p.) | |
| (4) ARPU Consumer (€/month) |
29.5 | 30.6 | 30.8 | 30.9 | 30.5 | 30.7 | 4.2 | |
| Mobile lines ('000) | 16.245 | 16.170 | 16.101 | 15.984 | 15.984 | 15.873 | (372) | (2.3) |
| o/w Consumer | 14.734 | 14.640 | 14.557 | 14.416 | 14.416 | 14.295 | (439) | (3.0) |
| Human | 16.057 | 15.983 | 15.913 | 15.791 | 15.791 | 15.682 | (375) | (2.3) |
| o/w Consumer | 14.732 13.502 |
14.638 13.451 |
14.556 13.399 |
14.415 13.280 |
14.415 13.280 |
14.294 13.233 |
(438) (269) |
(3.0) (2.0) |
| Human Calling o/w Consumer |
12.178 | 12.107 | 12.041 | 11.904 | 11.904 | 11.844 | (334) | (2.7) |
| Not Human (M2M) | 188 | 188 | 187 | 193 | 193 | 191 | 3 | 1.4 |
| Churn rate % (5) | 5.0% | 4.7% | 4.8% | 4.9% | 19.4% | 4.7% | (0.3 p.p.) | |
| o/w Consumer | 5.0% | 4.8% | 4.9% | 4.9% | 19.7% | 4.7% | (0.3 p.p.) | |
| ARPU Consumer - Human calling (€/month) | 10.6 | 10.5 | 10.8 | 10.6 | 10.6 | 10.5 | (0.5) |
(1) Organic figures excluding non-recurring items (2) Q4 '24 consumer broadband customer base cleaned (c.500k lines) to optimize overall costs with no impact on total customer base (3) On total lines, internal transformations and other causes excluded (4) Restated to reflect a minor change in revenue allocation (5) On Human lines
TIM Enterprise
€m, IFRS 16
| Q1 '24 | Q2 '24 | Q3 24 | Q4 '24 | FY '24 | Q1 '25 | Change YoY abs |
Change YoY % |
|
|---|---|---|---|---|---|---|---|---|
| REVENUES | 727 | 776 | 770 | 1.018 | 3.291 | 760 | 33 | 4.5 |
| SERVICE REVENUES | 663 | 717 | 722 | ਰੇ15 | 3.017 | 707 | 44 | 6.6 |
| Connectivity | 266 | 262 | 265 | 286 | 1.079 | 256 | (10) | (3.8) |
| Cloud | 227 | 250 | 257 | ਤਵਰ | 1.103 | 283 | 56 | 24.3 |
| Other II | 170 | 205 | 200 | 260 | 835 | 168 | (2) | (1.2) |
| o/w MSA | 19 | 18 | 20 | 24 | 81 | 23 | 4 | 21.1 |
| PRODUCT/EQUIPMENT | 64 | 59 | 48 | 103 | 274 | 53 | (11) | (17.2) |
Back to index
TIM Brasil
ORGANIC figures (1), €m
| Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | FY '24 | Q1 '24 comparable |
Q1 '25 | Change YoY abs |
Change YoY % |
|
|---|---|---|---|---|---|---|---|---|---|
| REVENUES | 1.134 | 1.123 | 1.047 | 1.062 | 4.366 | 990 | 1.038 | 48 | 4.9 |
| SERVICE REVENUES | 1.099 | 1.088 | 1.016 | 1.015 | 4.218 | 960 | 1.013 | 53 | 5.6 |
| Mobile Services Wireline Services |
1.037 62 |
1.028 60 |
963 53 |
962 53 |
3.990 228 |
906 54 |
961 52 |
55 (2) |
6.2 (4.0) |
| HANDSETS | 35 | 35 | 31 | 41 | 148 | 30 | 25 | (5) | (17.7) |
| OPEX | ਦੇਰੇਰੇ | 563 | 520 | 529 | 2.211 | 523 | 540 | 17 | 3.2 |
| EBITDA EBITDA Margin |
535 47.2% |
560 49.8% |
527 50.2% |
533 50.1% |
2.155 49.4% |
467 47.2% |
498 48.0% |
31 | 6.8 0.8 p.p. |
| EBITDA After Lease EBITDA AL Margin |
406 35.8% |
437 38.8% |
407 38.8% |
414 38.9% |
1.664 38.1% |
355 35.8% |
377 36.4% |
22 | 6.5 0.6 p.p. |
| CAPEX net of licences | 252 | 163 | 143 | 222 | 780 | 220 | 217 | (3) | (1.2) |
| % on revenues | 22.2% | 14.7% | 14.0% | 20.7% | 17.9% | 22.2% | 20.9% | (1.3 p.p.) | |
| Exchange rate AVG YTD (R\$/euro) | 5.38 | 5.49 | 5.69 | 5.83 | 5.83 | 6.16 | 6.16 | ||
| Mobile Lines ('000) 12/ | 61.420 | 61.986 | 62.149 | 62.058 | 62.058 | 61.420 | 62.039 | 619 | 1.0 |
| ARPU Mobile (R\$/month) {3} | 30.4 | 31.2 | 31.7 | 32.3 | 31.4 | 30.4 | 31.9 | 5.0 | |
| TIM UltraFibra Lines ('000) | 806 | 798 | 793 | 790 | 790 | 806 | 790 | (16) | (2.0) |
| ARPU TIM UltraFibra (R\$/month) | 95.8 | 98.6 | 99.0 | 95.5 | 97.2 | 95.8 | 93.2 | (2.7) |
Profit & Loss
REPORTED figures, IFRS 16, €m
| FY '24 | Q3 '24 | Q4 '24 | H2 '24 | Q1 '25 | |
|---|---|---|---|---|---|
| REVENUES | 14.442 | 3.569 | 3.812 | 7.381 | 3.276 |
| Other Income TOTAL OPERATING REVENUES AND OTHER INCOME Acquisition of goods and services Employee benefits expenses Other operating expenses Internally generated assets and Others |
233 14.675 (8.017) (1.478) (662) 307 |
66 3.635 (2.118) (334) (152) 68 |
118 3.930 (2.329) (373) (196) 54 |
184 7.565 (4.447) (707) (348) 122 |
42 3.318 (1.919) (383) (141) 66 |
| EBITDA | 4.825 | 1.099 | 1.086 | 2.185 | 941 |
| EBITDA Margin Depreciation and amortization Gains (losses) on disposals of non-current assets Impairment reversals (losses) on non-current assets |
33.4% (3.189) 3 (94) |
30.8% (784) 14 |
28.5% (772) (11) (80) |
29.6% (1.556) 3 (80) |
28.7% (735) 3 |
| EBIT | 1.545 | 329 | 223 | 552 | 209 |
| EBIT Margin Income (loss) equity invest. valued equity method Net Financial Income / (Expenses) |
10.7% 55 (1.343) |
9.2% 3 (279) |
5.8% 63 (252) |
7.5% 66 (531) |
6.4% (7) (273) |
| Profit (loss) before tax from continuing operations | 257 | 53 | 34 | 87 | (71) |
| Income tax expense | (174) | (67) | (74) | (141) | 11 |
| Profit (loss) from continuing operations | 83 | (14) | (40) | (54) | (60) |
| Discontinued operations/Non-current assets held for sale (1) | (447) | 195 | (2) | 193 | (21) |
| PROFIT (LOSS) | (364) | 181 | (42) | 139 | (81) |
| Parent Company Minorities |
(610) 246 |
137 44 |
(101) ਦਰੇ |
36 103 |
(124) 43 |
Cash Flow & Net Debt
REPORTED figures, After Lease view, €m. Sparkle not discontinued
| TIM Group - Integrated view | TIM Group | |||||||
|---|---|---|---|---|---|---|---|---|
| Q1 '24 | Q2 '24 | H1 '24 | Q3 '24 | Q4 '24 | H2 '24 | Q1 '25 | ||
| EBITDA After Lease CAPEX net of licences |
1.157 (940) |
1.323 (990) |
2.480 (1.930) |
931 (371) |
924 (757) |
1.855 (1.128) |
789 (478) |
|
| BITDA AL - CAPEX net of licences | 217 | 333 | 550 | 560 | 167 | 727 | 311 | |
| CHANGE IN WORKING CAPITAL net of licences | (510) | (226) | (736) | (301) | 462 | 161 | (362) | |
| OPERATING FREE CASH FLOW net of licences | (293) | 107 | (186) | 259 | 629 | 888 | (21) | |
| Financial Expenses Cash Taxes & Other |
(339) (341) |
(396) 234 |
(735) (107) |
(123) 51 |
(120) 5 |
(243) 62 |
(155) 8 |
|
| EQUITY FREE CASH FLOW After Lease | (973) | (55) | (1.028) | 193 | 514 | 707 | (198) | |
| Dividends and change in Equity Disposal and Financial investments Licences |
(39) (ਰ) |
(37) (21) (24) |
(76) (30) (24) |
(42) 13.368 |
(41) 249 |
(83) 13.617 |
(35) (20) |
|
| NET CASH FLOW After Lease | (1.021) | (137) | (1.158) | 13.519 | 722 | 14.241 | (253) | |
| Adj. Net Debt After Lease EoP | 21.370 | 21.507 | 21.507 | 7.988 | 7.266 | 7.266 | 7.519 | |
| LTM Organic EBITDA After Lease (4) | 3.673 | 3.672 | 3.672 | 3.661 | ||||
| Leverage (Adj. Net Debt AL / LTM Organic EBITDA AL) | 2.17 | 1.98 | 1.98 | 2.05 |
Balance Sheet - Assets
IFRS 16, €m
| TIM Group | |||
|---|---|---|---|
| 30 Sep. 2024 | 31 Dec. 2024 | 31 Mar. 2025 |
|
| CURRENT ASSETS | 9.073 | 9.186 | 10.155 |
| Trade and miscellaneous receivables and other current assets | 4.546 | 4.146 | 4.115 |
| Cash and cash equivalents | 2.164 | 2.924 | 2.227 |
| Discontinued operations/assets held for sale (1) | 1.170 | ||
| Securities other than investments, other financial receivables and other current financial assets | 1.878 | 1.651 | 2.275 |
| Inventories | 314 | 297 | 223 |
| Current income tax receivables | 139 | 124 | 113 |
| Current financial receivables arising from lease contracts | 32 | 44 | 32 |
| Other investments | |||
| NON-CURRENT ASSETS | 28.790 | 28.477 | 27.798 |
| Intangible assets | 17.262 | 17.041 | 16.963 |
| Goodwill | 11.125 | 11.030 | 11.061 |
| Intangible assets with a finite useful life | 6.137 | 6.011 | 5.902 |
| Tangible assets | 4.545 | 4.560 | 4.263 |
| Property, plant and equipment owned | 4.545 | 4.560 | 4.263 |
| Right of Use assets | 3.450 | 3.467 | 3.311 |
| Other assets | 3.533 | 3.409 | 3.261 |
| Miscellaneous receivables and other non-current assets | 1.594 | 1.795 | 1.739 |
| Non-current financial assets | 767 | 686 | 585 |
| o/w receivable for lease contracts | 43 | 40 | 37 |
| o/w other non-current financial assets | 724 | 646 | 548 |
| Deferred tax assets | 549 | 513 | 527 |
| Other investments | 155 | 150 | 145 |
| Investments in associates and joint ventures accounted for using the equity method | 468 | 265 | 265 |
| TOTAL ASSETS | 37.863 | 37.663 | 37.953 |
(1) Sparkle assets reclassified to discontinued operations under IFRS 5
Balance Sheet - Liabilities
IFRS 16, €m
| TIM Group | |||
|---|---|---|---|
| 30 Sep. 2024 | 31 Dec. 2024 | 31 Mar. 2025 |
|
| CURRENT LIABILITIES | 10.735 | 11.511 | 12.429 |
| Trade and miscellaneous payables and other current liabilities | 6.899 | 7.074 | 6.886 |
| Current financial liabilities | 3.815 | 4.393 | 4.493 |
| o/w liabilities for financing contracts and others | 3.276 | 3.870 | 4.003 |
| o/w liabilities for lease contracts | 539 | 523 | 490 |
| Liabilities directly associated with Discontinued operations/Non-current assets held for sale '1' | 1.006 | ||
| Current income tax payables | 21 | 44 | 44 |
| NON-CURRENT LIABILITIES | 13.479 | 12.791 | 12.201 |
| Non-current financial liabilities | 11.930 | 11.149 | 10.704 |
| o/w liabilities for financing contracts and others | 9.479 | 8.728 | 8.223 |
| o/w liabilities for lease contracts | 2.451 | 2.421 | 2.481 |
| Miscellaneous payables and other non-current liabilities | 773 | 896 | 777 |
| Employee benefits | 200 | 200 | 194 |
| Provisions | 448 | 485 | 464 |
| Deferred tax liabilities | 78 | 61 | 62 |
| TOTAL LIABILITIES | 24.164 | 24.302 | 24.630 |
| EQUITY | 13.699 | 13.361 | 13.323 |
| Equity attributable to equity owners of the Parent | 12.247 | 11.957 | 11.975 |
| Equity attributable to Minority Interests | 1.452 | 1.404 | 1.348 |
| TOTAL LIABILITIES & EQUITY | 37.863 | 37.663 | 37.953 |
Further questions
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