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Investor Presentation • Aug 1, 2024
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Investor Presentation
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H1 '24 Financial & Operating Figures Preliminary Like-for-Like ServCo
Index
Key Financials – ServCo TIM Consumer TIM Enterprise
Disclaimer
The preliminary financial results and the information contained herein have been prepared by TIM's management for information and illustration purposes only.
In particular, the preliminary financial results contained herein are 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 are the same as those adopted in the TIM Group Annual Audited Consolidated Financial Statements as of 31 December 2023, to which reference can be made, except for the amendments to the standards issued by IASB and adopted starting from 1 January, 2024. Such preliminary financial results are unaudited.
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) and Equity Free Cash Flow. 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.
In particular, with reference to Servco's financial results, in order to provide a better understanding of business performance, managerial Organic "like for like" figures are shown, calculated by simulating the effects of the NetCo separation transaction. These figures should not be considered as substitutes for the economic and financial information for which they provide a reclassification, are unaudited, and are produced for explanatory purposes only. These figures, which are the result of managerial simulations, may differ materially from those that will be published in future financial statements under IFRS.
The information contained herein should not be viewed as complete and exhaustive, and the accuracy of the information can in no way be guaranteed.
Key Financials – ServCo – 2023 Results by quarter BACK TO INDEX
€m, IFRS 16 & After Lease view
| ORGANIC (1) | o/w MSA | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | FY '23 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | FY '23 | |||||
| REVENUES | 3,372 | 3,503 | 3,608 | 3,902 | 14,385 | 3 4 |
3 3 |
3 4 |
3 3 |
134 | ||||
| TIM Domestic (2) | 2,368 | 2,428 | 2,479 | 2,736 | 10,011 | 3 4 |
3 3 |
3 4 |
3 3 |
134 | ||||
| o/w TIM Consumer (3) | 1,478 | 1,492 | 1,542 | 1,522 | 6,034 | 14 | 13 | 14 | 13 | 5 4 |
||||
| o/w TIM Enterprise (3) | 712 | 725 | 731 | 1,000 | 3,168 | 2 0 |
2 0 |
2 0 |
2 0 |
80 | ||||
| o/w Sparkle | 228 | 263 | 258 | 272 | 1,021 | - | - | - | - | - | ||||
| TIM Brasil | 1,012 | 1,086 | 1,138 | 1,176 | 4,412 | - | - | - | - | - | ||||
| SERVICE REVENUES | 3,133 | 3,275 | 3,374 | 3,580 | 13,362 | 3 4 |
3 3 |
3 4 |
3 3 |
134 | ||||
| TIM Domestic (2) | 2,160 | 2,231 | 2,279 | 2,459 | 9,129 | 3 4 |
3 3 |
3 4 |
3 3 |
134 | ||||
| o/w TIM Consumer (3) | 1,346 | 1,371 | 1,424 | 1,391 | 5,532 | 14 | 13 | 14 | 13 | 5 4 |
||||
| o/w TIM Enterprise (3) | 638 | 663 | 665 | 886 | 2,852 | 2 0 |
2 0 |
2 0 |
2 0 |
80 | ||||
| o/w Sparkle | 226 | 248 | 242 | 241 | 957 | - | - | - | - | - | ||||
| TIM Brasil | 981 | 1,055 | 1,104 | 1,131 | 4,271 | - | - | - | - | - | ||||
| EBITDA | 893 | 1,065 | 1,105 | 1,101 | 4,164 | (464) | (455) | (449) | (446) | (1,814) | ||||
| TIM Domestic (2) | 434 | 530 | 543 | 516 | 2,023 | (464) | (455) | (449) | (446) | (1,814) | ||||
| o/w TIM Consumer o/w TIM Enterprise |
Disclosed at year end only | 1,261 638 |
Disclosed at year end only | (1,615) (199) |
||||||||||
| o/w Sparkle | 2 2 |
3 0 |
3 5 |
3 9 |
126 | - | - | - | - | - | ||||
| TIM Brasil | 461 | 537 | 564 | 587 | 2,149 | - | - | - | - | - | ||||
| EBITDA After Lease | 713 | 883 | 930 | 928 | 3,454 | (464) | (455) | (449) | (445) | (1,813) | ||||
| TIM Domestic (2) | 396 | 487 | 502 | 472 | 1,857 | (464) | (455) | (449) | (445) | (1,813) | ||||
| o/w TIM Consumer o/w TIM Enterprise |
Disclosed at year end only | 1,109 629 |
Disclosed at year end only | |||||||||||
| o/w Sparkle | 2 1 |
2 9 |
3 5 |
3 8 |
123 | - | - | - | - | - | ||||
| TIM Brasil | 319 | 398 | 430 | 458 | 1,605 | - | - | - | - | - | ||||
| CAPEX net of licences | 518 | 464 | 469 | 674 | 2,125 | |||||||||
| TIM Domestic (4) | 287 | 291 | 281 | 432 | 1,291 | |||||||||
| o/w TIM Consumer | 896 | |||||||||||||
| o/w TIM Enterprise | Disclosed at year end only | 290 | ||||||||||||
| o/w Sparkle | 2 7 |
17 | 17 | 45 | 106 | |||||||||
| TIM Brasil | 231 | 173 | 188 | 242 | 834 | |||||||||
| EBITDA AL - CAPEX net of licences | 195 | 419 | 461 | 254 | 1,329 | |||||||||
| TIM Domestic | 109 | 196 | 221 | 40 | 566 | |||||||||
| TIM Brasil | 88 | 225 | 242 | 216 | 771 |
(1) Organic figures excluding non-recurring items (2) The sums may not add up to the total due to Sparkle elisions (3) TIM Consumer and TIM Enterprise revenues net of mutual intercompany (no impact on EBITDA) (4) CAPEX net one off separation
Key Financials – ServCo – 2024 Performance BACK TO INDEX
€m, IFRS 16 & After Lease view
| €m, IFRS 16 & After Lease view | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| ORGANIC (1) | o/w MSA | ||||||||||
| Q1 '23 comparable |
Q1 '24 | Change YoY % |
Q2 '23 comparable |
Q2 '24 | Change YoY % |
H1 '23 comparable |
H1 '24 | Change YoY % |
Q1 '24 | Q2 '24 | |
| REVENUES | 3,408 | 3,503 | 2.8 | 3,463 | 3,609 | 4.2 | 6,871 | 7,112 | 3.5 | 3 3 |
3 4 |
| TIM Domestic (2) | 2,367 | 2,379 | 0.5 | 2,429 | 2,494 | 2.7 | 4,796 | 4,873 | 1.6 | 3 3 |
3 4 |
| o/w TIM Consumer (3) | 1,478 | 1,481 | 0.2 | 1,492 | 1,489 | (0.2) | 2,970 | 2,970 | 0.0 | 13 | 14 |
| o/w TIM Enterprise (3) | 712 | 729 | 2.4 | 725 | 778 | 7.3 | 1,437 | 1,507 | 4.9 | 2 0 |
2 0 |
| o/w Sparkle | 227 | 215 | (5.3) | 264 | 278 | 5.3 | 491 | 493 | 0.4 | - | - |
| TIM Brasil | 1,049 | 1,134 | 8.1 | 1,045 | 1,123 | 7.5 | 2,094 | 2,257 | 7.8 | - | - |
| SERVICE REVENUES | 3,168 | 3,277 | 3.4 | 3,236 | 3,381 | 4.5 | 6,404 | 6,658 | 4.0 | 3 3 |
3 4 |
| TIM Domestic (2) | 2,159 | 2,188 | 1.3 | 2,232 | 2,301 | 3.1 | 4,391 | 4,489 | 2.2 | 3 3 |
3 4 |
| o/w TIM Consumer (3) | 1,346 | 1,356 | 0.8 | 1,371 | 1,375 | 0.3 | 2,717 | 2,731 | 0.5 | 13 | 14 |
| o/w TIM Enterprise (3) | 638 | 665 | 4.3 | 663 | 719 | 8.4 | 1,301 | 1,384 | 6.4 | 2 0 |
2 0 |
| o/w Sparkle | 225 | 213 | (5.3) | 249 | 258 | 3.6 | 474 | 471 | (0.6) | - | - |
| TIM Brasil | 1,017 | 1,099 | 8.1 | 1,015 | 1,088 | 7.2 | 2,032 | 2,187 | 7.6 | - | - |
| EBITDA | 910 | 1,016 | 11.6 | 1,046 | 1,123 | 7.4 | 1,956 | 2,139 | 9.4 | (453) | (449) |
| TIM Domestic (2) | 434 | 483 | 11.3 | 530 | 563 | 6.2 | 964 | 1,046 | 8.5 | (453) | (449) |
| o/w TIM Consumer o/w TIM Enterprise |
Disclosed at year end only | Disclosed at year end only | Disclosed at year end only | Disclosed at year end only | |||||||
| o/w Sparkle | 22 | 20 | (9.1) | 30 | 22 | (27) | 52 | 42 | (19) | - | - |
| TIM Brasil | 478 | 535 | 11.8 | 518 | 560 | 8.3 | 996 | 1,095 | 9.9 | - | - |
| EBITDA After Lease | 725 | 845 | 16.6 | 870 | 957 | 10.0 | 1,595 | 1,802 | 13.0 | (453) | (449) |
| TIM Domestic (2) | 396 | 441 | 11.4 | 487 | 520 | 6.8 | 883 | 961 | 8.8 | (453) | (449) |
| o/w TIM Consumer o/w TIM Enterprise |
Disclosed at year end only | Disclosed at year end only | Disclosed at year end only | Disclosed at year end only | |||||||
| o/w Sparkle | 21 | 20 | (4.8) | 29 | 22 | (24) | 50 | 42 | (16) | - | - |
| TIM Brasil | 331 | 406 | 22.7 | 385 | 437 | 13.7 | 716 | 843 | 17.8 | - | - |
| CAPEX net of licences | 527 | 543 | 3.0 | 454 | 420 | (7.5) | 981 | 963 | (1.8) | ||
| TIM Domestic (4) | 287 | 291 | 1.4 | 291 | 257 | (11.7) | 578 | 548 | (5.2) | ||
| o/w TIM Consumer o/w TIM Enterprise |
Disclosed at year end only | Disclosed at year end only | Disclosed at year end only | ||||||||
| o/w Sparkle | 27 | 26 | (3.7) | 1 7 |
37 | 118 | 44 | 63 | 43 | ||
| TIM Brasil | 240 | 252 | 5.1 | 163 | 163 | 0.0 | 403 | 415 | 3.0 2.9 |
||
| EBITDA AL - CAPEX net of licences | 198 | 302 | 52.5 | 416 | 537 | 29.1 | 614 | 839 | 36.6 | ||
| TIM Domestic | 109 | 150 | 37.6 | 196 | 263 | 34.2 | 305 | 413 | 35.4 | ||
| TIM Brasil | 91 | 154 | 68.8 | 222 | 274 | 24.1 | 313 | 428 | 36.9 |
(1) Organic figures excluding non-recurring items. Comparable base also excluding exchange rate fluctuations (avg. exchange-rate 5.49 R\$/€ in H1 '24, 5.38 R\$/€ in Q1 '24) (2) The sums may not add up to the total due to Sparkle elisions (3) TIM Consumer and TIM Enterprise revenues net of mutual intercompany (no impact on EBITDA) (4) CAPEX net one off separation
TIM Consumer BACK TO INDEX
€m, IFRS 16
Like-for-Like, Unaudited figures
| ORGANIC (1) | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | FY '23 | Q1 '24 | Change YoY % |
Q2 '24 | Change YoY % |
H1 '23 | H1 '24 | Change YoY % |
|
| REVENUES | 1,478 | 1,492 | 1,542 | 1,522 | 6,034 | 1,481 | 0.2 | 1,489 | (0.2) | 2,970 | 2,970 | 0.0 |
| SERVICE REVENUES | 1,346 | 1,371 | 1,424 | 1,391 | 5,532 | 1,356 | 0.8 | 1,375 | 0.3 | 2,717 | 2,731 | 0.5 |
| Retail (Consumer+SMB) Wholesale & other o/w MVNOs o/w VISE MSA |
1,226 106 50 20 14 |
1,237 121 50 33 13 |
1,243 167 51 11 14 |
1,249 129 46 33 13 |
4,955 523 198 163 54 |
1,222 121 64 21 13 |
(0.3) 13.3 28.2 5.9 (0.8) |
1,236 125 57 33 14 |
(0.1) 3.7 13.2 0.5 6.0 |
2,463 227 100 53 27 |
2,458 246 121 54 27 |
(0.2) 8.6 20.6 2.2 (0.8) |
| EQUIPMENT & HANDSETS | 132 | 120 | 119 | 131 | 502 | 124 | (5.6) | 114 | (5.0) | 252 | 238 | (5.6) |
| Fixed lines ('000) o/w Consumer Broadband lines ('000) o/w Consumer UBB lines ('000) Churn rate % (2) |
7,735 6,775 7.027 6,213 5,334 3.4% |
7,662 6,708 6,970 6,154 5,371 3.3% |
7,586 6,636 6,909 6,091 5,384 3.2% |
7,499 6,554 6.844 6,024 5,404 3.8% |
7,499 6,554 6,844 6,024 5,404 13.7% |
7,414 6,473 6,783 5,960 5,438 4.0% |
(4.1) (4.5) (3.5) (4.1) 1.9 |
7,323 6,389 6.713 5,890 5,448 3.8% |
(4.4) (4.7) (3.7) (4.3) 1.4 |
7,662 6,708 6,970 6,154 5,371 6.7% |
7,323 6,389 6,713 5,890 5,448 7.7% |
(4.4) (4.7) (3.7) (4.3) 1.4 |
| o/w Consumer | 3.3% | 3.2% | 3.1% | 3.8% | 13.4% | 3.9% | 0.5 p.p. 0.6 p.p. |
3.7% | 0.5 p.p. 0.5 p.p. |
6.5% | 7.6% | 1.0 p.p. 1.2 p.p. |
| ARPU Consumer (€/month) | 27.4 | 28.1 | 28.3 | 28.9 | 28.2 | 29.2 | 6.9 | 30.4 | 8.1 | 27.7 | 29.8 | 7.5 |
| Mobile lines ('000) o/w Consumer |
16,660 15,202 |
16,623 15,151 |
16,539 15,054 |
16,397 14,896 |
16,397 14,896 |
16,245 14,734 |
(2.5) (3.1) |
16,170 14,640 |
(2.7) (3.4) |
16,623 15,151 |
16,170 14,640 |
(2.7) (3.4) |
| Human o/w Consumer Human Calling o/w Consumer Not Human (M2M) |
16,463 15,201 13,838 12,576 198 |
16,426 15,150 13,842 12,565 196 |
16,341 15,053 13,731 12,443 198 |
16,200 14,895 13,578 12,273 197 |
16,200 14,895 13,578 12,273 197 |
16,057 14,732 13,502 12,178 188 |
(2.5) (3.1) (2.4) (3.2) (4.7) |
15,983 14,638 13,451 12,107 188 |
(2.7) (3.4) (2.8) (3.6) (4.4) |
16,426 15,150 13,842 12,565 196 |
15,983 14,638 13,451 12,107 188 |
(2.7) (3.4) (2.8) (3.6) (4.4) |
| Churn rate % (3) o/w Consumer |
4.7% 4.7% |
4.5% 4.4% |
4.9% 5.0% |
5.1% 5.2% |
19.2% 19.3% |
5.0% 5.0% |
0.3 p.p. 0.4 p.p. |
4.7% 4.8% |
0.2 p.p. 0.3 p.p. |
9.2% 9.1% |
9.7% 9.8% |
0.5 p.p. 0.7 p.p. |
| ARPU Consumer - Human calling (€/month) | 10.6 | 10.7 | 11.0 | 11.1 | 10.8 | 10.6 | (0.6) | 10.5 | (1.6) | 10.7 | 10.6 | (1.1) |
TIM Enterprise BACK TO INDEX
€m, IFRS 16
Like-for-Like, Unaudited figures
| ORGANIC (1) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | FY '23 | Q1 '24 | Change YoY % |
Q2 '24 | Change YoY % |
H1 '23 | H1 '24 | Change YoY % |
||
| REVENUES | 712 | 725 | 731 | 1,000 | 3,168 | 729 | 2.4 | 778 | 7.3 | 1,437 | 1,507 | 4.9 | |
| SERVICE REVENUES | 638 | 663 | 665 | 886 | 2,852 | 665 | 4.3 | 719 | 8.4 | 1,301 | 1,384 | 6.4 | |
| Enterprise o/w Connectivity o/w Cloud o/w Security o/w IoT o/w Other IT |
618 262 184 19 11 141 |
643 262 197 2 0 12 153 |
645 273 192 2 3 14 143 |
866 285 285 5 3 2 1 223 |
2,772 1,082 858 115 5 7 659 |
645 262 217 3 4 19 113 |
4.4 0.0 17.5 78.7 79.2 (20.1) |
699 257 239 44 15 144 |
8.7 (1.9) 21.3 120.0 25.0 (5.9) |
1,261 524 381 3 9 2 3 294 |
1,344 519 455 79 3 4 257 |
6.5 (0.9) 19.4 100.8 49.3 (12.8) |
|
| MSA PRODUCT/EQUIPMENT |
2 0 7 4 |
2 0 6 2 |
2 0 6 6 |
2 0 114 |
80 316 |
2 0 6 4 |
(0.1) (14.0) |
2 0 5 9 |
0.8 (4.8) |
40 136 |
40 123 |
0.4 (9.6) |
TIM Brasil BACK TO INDEX
€m, IFRS 16 & After Lease view
| ORGANIC (1) | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | FY '23 | Q1 '23 comparable |
Q1 '24 | Change YoY % |
Q2 '23 comparable |
Q2 '24 | Change YoY % |
H1 '23 comparable |
H1 '24 | Change YoY % |
|
| REVENUES | 1,012 | 1,086 | 1,138 | 1,176 | 4,412 | 1,049 | 1,134 | 8.1 | 1,045 | 1,123 | 7.5 | 2,094 | 2,257 | 7.8 |
| SERVICE REVENUES | 981 | 1,055 | 1,104 | 1,131 | 4,271 | 1,017 | 1,099 | 8.1 | 1,015 | 1,088 | 7.2 | 2,032 | 2,187 | 7.6 |
| Mobile Services Wireline Services |
925 56 |
ਰੇਰੇ ਦ ਟਰੇ |
1,043 61 |
1,070 61 |
4,033 238 |
ਰੇਟੇਰੇ 28 |
1,037 62 |
8.2 5.6 |
958 57 |
1,028 60 |
7.3 4.9 |
1,917 115 |
2,065 122 |
7.8 5.3 |
| HANDSETS | 31 | 31 | 34 | 45 | 141 | 32 | 35 | 7.5 | 30 | 35 | 17.8 | 62 | 70 | 12.6 |
| OPEX | 551 | 549 | 574 | 289 | 2,263 | 571 | ਦਰਖ਼ਤ | 5.0 | 527 | 563 | 6.7 | 1,098 | 1,162 | 5.8 |
| EBITDA | 461 | 537 | 564 | 587 | 2,149 | 478 | 235 | 11.8 | 518 | 560 | 8.3 | date | 1,095 | 9.9 |
| EBITDA Margin | 45.6% | 49.5% | 49.6% | 49.9% | 48.7% | 45.6% | 47.2% | 1.6 p.p. | 49.5% | 49.8% | 0.3 p.p. | 47.6% | 48.5% | 0.9 p.p. |
| EBITDA After Lease | 319 | 398 | 430 | 458 | 1,605 | 331 | 406 | 22.7 | 385 | 437 | 13.7 | 716 | 843 | 17.8 |
| EBITDA AL Margin | 31.6% | 36.7% | 37.9% | 38.9% | 36.4% | 31.6% | 35.8% | 4.2 p.p. | 36.7% | 38.8% | 2.1 p.p. | 34.2% | 37.4% | 3.2 p.p. |
| CAPEX net of licences | 231 | 173 | 188 | 242 | 834 | 240 | 252 | 5.1 | 163 | 163 | 0.0 | 403 | 415 | 3.0 |
| % on revenues | 22.9% | 15.8% | 16.5% | 20.6% | 18.9% | 22.9% | 22.2% | (0.7 p.p.) | 15.8% | 14.7% | (1.1 p.p.) | 19.2% | 18.4% | (0.8 p.p.) |
| Exchange rate AVG YTD (R\$/euro) | 5.57 | 5.48 | 5.43 | 5.40 | 5.40 | 5.38 | 5.49 | 5.49 | ||||||
| Mobile Lines ('000) (2) | 61,721 | 61,225 | 61,254 | 61,248 | 61,248 | 61,721 | 61,420 | (0.5) | 61,225 | 61,986 | 1.2 | 61,225 | 61,986 | 1.2 |
| ARPU Mobile (R\$/month) (3) | 27.7 | 29.2 | 30.2 | 31.1 | 29.5 | 27.7 | 30.4 | 9.7 | 29.2 | 31.2 | 6.8 | 28.4 | 30.8 | 8.2 |
| TIM UltraFibra Lines ('000) | 732 | 761 | 791 | 802 | 802 | 732 | 806 | 10.1 | 761 | 798 | 4.8 | 761 | 798 | 4.8 |
| ARPU TIM UltraFibra (R\$/month) | 97.8 | 98.3 | 96.0 | 95.9 | 96.9 | 97.8 | 95.8 | (2.0) | 98.3 | 98.6 | 0.3 | 98.0 | 97.2 | (0.8) |
Further questions
please contact the IR team
(+39) 06 3688 2500
