(AGENPARL) – mer 12 febbraio 2025 Press Release
Rome, February 12, 2025
TIM GROUP:
DOUBLE-DIGIT GROWTH IN EBITDA AFTER LEASE FOR 2024, NET
DEBT AFTER LEASE UNDER €7.3 BLN AND LEVERAGE BELOW 2x
REVENUES AT €14.5 BLN (+3.1% YOY) AND EBITDA AFTER LEASE
AT €3.7 BLN (+10.1% YOY)
GUIDANCE FULLY MET FOR THIRD YEAR IN A ROW
STRATEGIC PLAN: CASH GENERATION ADVANCED TO 2025,
POSSIBLE RETURN TO SHAREHOLDERS’ REMUNERATION IN THE
THREE-YEAR PERIOD 2026-2028
EQUITY FREE CASH FLOW AFTER LEASE OF €2.5 BLN OVER THE
2025-2027 PLAN PERIOD
GROUP-LEVEL INVESTMENTS OF €6 BLN OVER THE THREE-YEAR
PERIOD, FOCUSING ON 5G, DATA CENTERS, IOT AND AI
Operational highlights 2024 (organic results1):
DOMESTIC REVENUES AT €10.2 BLN (+1.5% YOY) AND DOMESTIC EBITDA
AFTER LEASE AT €2 BLN (+8.5% YOY)
REVENUES UP FOR TIM CONSUMER (€6.1 BLN, +0.6% YOY) AND TIM
ENTERPRISE (€3.3 BLN, +4.1% YOY)
TIM BRASIL REVENUES AT €4.4 BLN (+6.8%) AND EBITDA AFTER LEASE AT
€1.7 BLN (+11.9% YOY)
GROUP CAPEX AT €2.1 BLN; €1.3 BLN ON THE DOMESTIC PERIMETER
TIM’s Board of Directors met today under the chairmanship of Alberta Figari and examined
the preliminary results at December 31, 2024. The Board will meet to approve the annual
report and the consolidated financial statements on March 5.
2024 was a year of profound transformation for TIM, marked by the conclusion of the
journey begun in 2022 with the completion of the sale of NetCo to Kohlberg Kravis Roberts
& Co. L.P. (“KKR”) and the resulting reduction in financial debt.
The Group’s new structure is driving improved performance in the domestic market, while
operational efficiency and cash generation continue to grow in the Brazilian market.
On the financial front, TIM closed 2024 by meeting or exceeding the Group guidance
provided to the market for the third consecutive year and is laying the foundation for
accelerating the company’s development.
PRELIMINARY RESULTS 2024
Group total revenues amounted to 14.5 billion euros, up by 3.1% year-on-year (+1.5% in
domestic to 10.2 billion euros, +6.8% in Brazil to 4.4 billion euros); Group service
revenues rose by 3.4% year-on-year to 13.5 billion euros (+2.0% in domestic to 9.3 billion
euros, +6.6% in Brazil to 4.2 billion euros);
Group EBITDA grew significantly, increasing by 8.3% year-on-year to 4.3 billion euros
(+8.3% domestic to 2.2 billion euros, +8.3% in Brazil to 2.2 billion euros);
Group EBITDA After Lease grew remarkably, rising 10.1% year-on-year to 3.7 billion
euros (+8.5% in domestic to 2 billion euros, +11.9% in Brazil to 1.7 billion euros);
TIM Consumer2 reported total revenues rising to 6.1 billion euros (+0.6% year-on-year).
The business unit continued on its path of stabilization during 2024: factors supporting
this trend include the positive effects of repricing activities carried out since the
beginning of the year and limited churn. Customer platform revenues are also up thanks
TIM Domestic’s financial results for the nine months ended December 31, 2024 are based on preliminary and
“like-for-like” management information, reworked simulating for the first half of 2024 the impact of the
relationship between TIM and NetCo/FiberCop, governed by the Master Service Agreement (MSA), while, for
the second half, the results reflect the actual accounting impact of the MSA and the Transitional Services
Agreement (TSA). The 2023 results used as a comparison are also based on “like-for-like” information,
simulating the effects of the TIM/NetCo relationship as if the NetCo sale had taken place on January 1, 2023.
The revenues of TIM Consumer and TIM Enterprise and the related growth percentages are shown net of the
ratios between the two areas and include the effects of the Master Service Agreement with FiberCop and, from
the third quarter of 2024, also the Transitional Service Agreement.
to combined broadband connectivity and entertainment offerings and ICT services
revenues for small and medium-sized enterprises (+7%);
TIM Enterprise2 reported total revenues of 3.3 billion euros (+4.1% year on year). The
company continued to outperform the reference market (service revenues +6%) due to
its strategy of defending its connectivity business and growth in IT revenues, which
account for 64% of the total. There was a 4.1 billion euros increase in the value of
contracts signed in the 12 months, with the contribution of the Polo Strategico
Nazionale (520 million euros compared to 300 million euros in 2023);
TIM Brasil reported revenues of 4.4 billion euros (+6.8% year-on-year) and an EBITDA
After Lease of 1.7 billion euros (+11.9% year-on-year), continuing the growth trajectory
of the last two years thanks to the momentum from the mobile segment.
During the year, cost containment actions aimed at increasing the level of structural
efficiency of the domestic perimeter continued successfully (“Transformation Plan”) and
115% of the reduction target of over 0.2 billion expected for 2024 was achieved.
The Group’s Adjusted Net Financial Debt After Lease as at December 31, 2024 fell below
7.3 billion euros, down 0.8 billion euros from the value immediately following the
completion of the sale of NetCo, thanks to organic cash generation in the second half of
the year and the sale of the remaining stake in INWIT, which was finalized in November.
The Group has achieved the stated deleverage target, with a ratio of Adjusted Net Debt
After Lease to Organic EBITDA After Lease3 below 2x.
The Group’s liquidity margin covers financial maturities until 2029.
TIM’s Board of Directors also approved the updated 2025-2027 strategic plan, presented
by CEO Pietro Labriola, which aims to position the Group as the best and biggest digital
and Telco platform in Italy, and as the most efficient TLC operator in Brazil. Leverage will
be further reduced thanks to cash generation as per the plan, and shareholder
remuneration will be resumed, while maintaining financial flexibility and a solid capital
structure.
“2024 was a year of great transformation for our Group, marked by the completion of NetCo
disposal and the strengthening of our position in our reference markets,’ said Pietro Labriola,
TIM CEO. ‘For the third year in a row we fully met the Group guidance, transforming TIM into
a more solid and focused company. Just today we have completed the last step of the plan
presented in 2022, approving the sale of Sparkle to MEF and Retelit. Also, thanks to the cashin from this offer, we aim to restore shareholder remuneration from 2026 and we foresee,
for the following two years, a payout equal to 70% of the cash generation. Regarding the
targets, the plan envisages an average annual growth of 3% in revenues and between 6 and
7% for margins, supported by improved domestic operations and expansion in Brazil. We are
ready to consolidate our leadership by investing 6 billion euros in technology and innovation
to continue creating value for all our stakeholders”.
Organic EBITDA After Lease for 2024 is to be understood as the “like-for-like” organic EBITDA After Lease of
the TIM Group after the sale of NetCo.
GUIDANCE 2025-2027
The TIM Group’s financial targets (organic data, excluding Sparkle and the effect of the
reimbursement of the 1998 concession fee4) are set out below:
? Group revenues to rise by approximately 3% on average per annum over the entire plan
period (CAGR 2024-2027) from 13.7 billion euros pro-forma in 2024; for TIM Domestic
revenues to grow by 2-3% on average per annum over the three-year period from 9.4
billion euros pro-forma in 2024. For 2025, Group revenues are expected to grow by 23%, and by 1-2% for TIM Domestic.
Group organic EBITDA After Lease to rise 6-7% per annum on average over the entire
plan period (CAGR 2024-2027) from 3,6 billion euros pro-forma in 2024; for TIM
Domestic, EBITDA After Lease to grow by 5-6% on average per annum over the threeyear period from 1.9 billion euros pro-forma in 2024. For 2025, Group organic EBITDA
After Lease to grow by approximately 7%, and 5-6% for TIM Domestic.
Group Capex about 14% of revenues in 2025, falling to about 13% in 2027; TIM Domestic
Capex of 12-13% in 2025, falling to about 11% in 2027.
Equity Free Cash Flow After Lease of approximately 0.5 billion euros in 20256,
approximately 0.9 billion euros in 2026, and approximately 1.1 billion euros in 2027, for
a total of approximately 2.5 billion euros accumulated over the plan period.
Organic reduction in Group debt, with a Net Debt After Lease/EBITDA After Lease ratio
of less than 1.9x in 20257.
The Group expects continued decline in debt for the two years 2026-2027, with a potential
leverage of 1.1x.
TIM will be able to seize all the opportunities that the evolution of its financial position will
offer, confirming its commitment to keep leverage below 1.7x at the end of 2027, which is
a “best in class” level among European peers.
For financial years 2026 and 2027, TIM aims to remunerate its shareholders with an
amount equal to about 70% of Equity Free Cash Flow After Lease, net of dividends for TIM
Brasil’s minority shareholders, resulting in a remuneration of approximately 0.5 billion
euros in 2027 and approximately 0.6 billion euros in 2028. During 2026, the company also
aims to an extraordinary remuneration from the sale of Sparkle8, equal to about 50% of
the proceeds (about 0.35 billion euros).
Shareholders’ remuneration subjected to availability of distributable reserves, Board of
Directors’ and Shareholders’ approval.
Excluding non-recurring items, changes in the scope of consolidation, and fluctuations in exchange rates. Group data with
an average exchange rate of 5.83R$/€. The 2025-2027 perimeter excludes the income contribution of Sparkle and any
proceeds associated with the sale of the company. 2024 has been recalculated by excluding Sparkle’s contribution.
TIM Brasil cash flow based on annual exchange rate published by Bloomberg Survey and based on projections of major
banks at January 9, 2025 (average exchange rate @ 6.18R$/€ in ’25, 6.37R$/€ in ’26 and 6.20R$/€ in ’27).
Including the cash in of the concession fee for 1998 the Equity Free Cash Flow AL for 2025 of the TIM Group would amount
to about 1.5 billion euros.
7 Adj. net debt AL/Organic EBITDA AL. TIM Brasil net debt based on consensus of exchange rate evolution (EoP exchange
rate at 6.21R$/€ in 2025). Including the effect on net debt of the reimbursement of the concession fee for 1998 leverage
would be about 1.7x.
8 Assuming closing of the transaction in the first quarter of 2026.
With regard to the individual entities comprising the TIM Group, the industrial plan sets out
the following strategic lines:
? TIM Consumer: core business revenues will continue to stabilize, with an improvement
in the downward trend in lines and growth in ARPU, and with greater customer
convergence between fixed and mobile. In parallel, the ‘Customer Platform’ model will
accelerate by expanding current services, launching utilities for small and mediumsized businesses in 2025, expected to generate 200 million euros in cumulative revenues
by 2027, and other high value-added sectors in 2026, resulting in ‘Beyond Connectivity’
revenue growth of more than 10% over the plan period. Investments on the mobile
network will enable accelerated development of 5G, which leverages the country’s
biggest spectrum and data transport network, and customer migration to FTTH will
continue.
? TIM Enterprise: Leveraging its unique positioning and competitive advantages, the
acceleration of service revenues driven by further expansion in the ICT market will
continue, with an evolution of offerings toward higher value-added services, amplified
by positioning on key growth sectors (Cloud, IoT, Cybersecurity). The revenue mix
includes a stable absolute value contribution from the connectivity business and growth
in ICT revenues, which will exceed 70% of total revenues. The value of contracts is
expected to grow to over 5 billion euros in 2027. On the Cloud, TIM Enterprise will
continue to invest in its Data Center network, with a new facility operational by the end
of 2026 to be added to the existing 16, plus the upgrading of two more Data Centers,
for a total of about 200 million euros in investments over the plan period, increasing
installed capacity by more than 25%.
? TIM Brasil: Further revenue growth is expected, at a rate above inflation, together with
consolidation of market leadership, including through expansion of key vertical markets
and a focus on cost efficiency and digitization of services.
The Group will invest around 6 billion euros over the plan period, aiming to consolidate its
leadership and distinctive offerings in areas such as 5G, Cloud, IoT and artificial intelligence.
At the Domestic level, the plan also includes an extension of the cost transformation
project, with a cumulative target of additional cost and investment reduction of over 700
million euros to 2027, driven by the simplification and downsizing of cost structures. There
will be a focus on efficiency in the Consumer area and internalization of resources and skills
in the Enterprise area, with the aim of mitigating cost trends related to the change in
revenue mix.
ESG and innovation is also at the heart of the strategic plan, setting four key objectives –
people growth, sustainable infrastructure, cybersecurity, and technology transformation –
for which the Group has identified quantitative targets that will guide the entire
organization.
TIM reaffirms its commitment to driving change toward gender parity (target of 35.5%
female managers by 2027, with full gender parity maintained on the Boards of Directors of
Group companies). In general, the plan aims to create a dynamic work environment in
which collaboration, merit and a desire to innovate are the engines for growth. Training
and reskilling will focus on innovation, specifically the adoption of AI in organizational
processes and gaining new skills for the increasing development of services and solutions
based on new technologies.
Environmental targets (100% renewable energy by 2025 and Net Zero by 2040) represent
an opportunity for the Group to further optimize the consumption energy and other
resources, reduce operating costs and minimize risks related to energy price fluctuations,
and enhance the leadership on environmental impact in competitive scenarios,
consistently with the regulation.
Cybersecurity is a strategic priority, with the strengthening of security code, automated
testing and an advanced anomaly detection system. There will be a strong push on
technology transformation, with targeted investments in ICT, adoption of network-tocloud, and the integration of AI into operational and decision-making processes.
Finally, the Group is targeting 17% growth per year in innovative services, with the goal of
further strengthening the deployment of solutions with high social and environmental
impact, such as applications for smart cities and digitization of the public administration,
i.e. services that will enact the Italian digital transition.
In conclusion, the 2025-2027 strategic plan integrates business and financial objectives
with ESG targets that aim to create a working environment fit for the ongoing drive for
innovation present in the global market, while also promoting operational efficiency,
stimulating innovation, and ensuring effective risk management and control.
TIM Press Office
https://www.gruppotim.it/media
X: X: @GruppoTIM
TIM Investor Relations
https://www.gruppotim.it/investor_relations
TIM Group’s preliminary results for FY2024 will be presented to the financial community via webcast on
February 13, 2025. The event will begin at 11:00 a.m. (Italian time). The presentation will be followed by a Q&A
session. Journalists will be able to follow the proceedings of the presentation online, but not ask questions, by
logging on to the following link. The presentation slides will be available at link.
LIKE-FOR-LIKE RESULTS IN FY 2024 AND THE FOURTH QUARTER 2024
The following are the main financial results of the like-for-like TIM Group (“like-for-like TIM Group ServCo”) in which the
organic economic and financial information relating to the operating performance for 2024 and 2023 have been reworked
based on management information. Such organic like-for-like information is prepared by simulating the separation operation
of the fixed network, with the creation of the NetCo component and the consequent definition of the (new) ServCo TIM
Group perimeter, as if it had occurred at the start of the reference period (January 1).
Specifically, the TIM Group’s “like-for-like” financial results for 2024 are based on:
a first half “like for like” estimate of revenues, OPEX and CAPEX divided between the TIM and NetCo components,
considering the final perimeter and simulating the impact of the relationship between TIM and NetCo/FiberCop, as
regulated by the Master Service Agreement (MSA);
second half results based on the actual impact of the relationship between TIM and NetCo/FiberCop, as regulated by the
MSA and Transitional Services Agreement (TSA).
The TIM Group’s financial results for 2023 are based on a “like-for-like” estimate of revenues, OPEX and CAPEX split between
the TIM and NetCo components, considering the final perimeter simulating the effect of transactions as if they had occurred
in January 2023 (to ensure a like-for-like comparison on an annual basis).
TIM ServCo Group preliminary like-for-like results
4th Quarter
4th Quarter
% Change
% Change
Revenues
3,812
TIM Domestic
2,758
3,733
14,493
14,062
2,737
10,162
10,011
of which TIM Consumer
1,551
1,524
6,078
6,040
of which TIM Enterprise
1,018
3,291
3,162
(15.4)
1,021
(4.9)
TIM Brasil
1,062
1,006
4,366
4,089
Service revenues
3,472
3,417
13,497
13,049
TIM Domestic
2,465
2,460
9,314
9,129
of which TIM Consumer
1,378
1,393
(3.5)
5,546
5,538
of which TIM Enterprise
3,017
2,846
(million euros) – organic data (*)
of which Sparkle
(11.9)
(2.9)
TIM Brasil
of which Sparkle
1,015
4,218
3,958
EBITDA
1,089
1,017
4,339
4,006
TIM Domestic
2,190
2,023
TIM Brasil
2,155
1,991
EBITDA AL
3,672
3,336
TIM Domestic
2,014
1,857
TIM Brasil
1,664
1,487
CAPEX (net of telecommunications
licenses)
TIM Domestic
2,091
2,064
1,311
1,291
TIM Brasil
EBITDA AL – CAPEX (net of
telecommunications licenses)
TIM Domestic
(23.8)
1,581
1,272
TIM Brasil
(*) The organic results exclude non-recurring items and the comparable base is calculated net of the foreign currency translation and the change in the scope of
consolidation.
INTRODUCTION
The TIM Group and TIM S.p.A. preliminary consolidated financial statements for the year 2024 and the comparative figures for
the previous year have been prepared in compliance with IFRS issued by the International Accounting Standards Board and
endorsed by the European Union (“IFRS”). The accounting policies and consolidation principles adopted are consistent with
those applied for the TIM Group Consolidated Financial Statements and the TIM S.p.A. Separate Financial Statements at
December 31, 2023, except for the amendments to the standards issued by IASB and adopted starting from January 1, 2024.
On July 1, 2024, the transaction for the sale of the business related to the domestic fixed network (primary network and
wholesale business of TIM S.p.A.), to FiberCop S.p.A. and Telenergia S.r.l. (“NetCo”) was completed. The P&L results from this
business have been classified, in accordance with IFRS 5, as Assets Sold/Available-for-Sale Assets. As a result of this
classification by NetCo, the figures in the separate income statement and the cash flow statement for 2023 have been
consistently reclassified, as required by IFRS 5.
In order to provide a better understanding of the performance of the business, a section has been included containing organic
economic and financial information relating to the operating performance in 2024 and 2023 for the scope of “TIM Group
ServCo”, reworked on the basis of management information. Such organic like-for-like information is prepared by simulating
the separation operation of the fixed network, with the creation of the NetCo component and the consequent definition of the
(new) ServCo TIM Group perimeter, as if it had occurred at the start of the reference period (January 1). Therefore, the 2024
like-for-like income results are reconstructed by simulating, for the first half of 2024, the impact of the relationship between
TIM and NetCo/FiberCop, governed by the Master Service Agreement (MSA), while for the second half they reflect the actual
accounting impact of the MSA and the Transitional Services Agreement (TSA). The 2023 results used as a comparison are also
based on “like-for-like” information, simulating the effects of the relationship between TIM and NetCo/FiberCop as if the sale
had taken place on January 1, 2023.
TIM Group, in addition to the conventional financial performance measures established by the IFRS Accounting Standards, uses
certain alternative performance measures in order to present a better understanding of the trend of operations and financial
condition.
Specifically, these alternative performance measures refer to: EBITDA; EBIT; organic change and impact of non-recurring items
on revenues, EBITDA and EBIT; EBITDA margin and EBIT margin; Net financial debt carrying amount and adjusted net financial
debt; Equity Free Cash Flow, Cash flow from operations; Cash flow from operations (net of licenses). Following the adoption of
IFRS 16, the TIM Group also presents the following additional alternative performance measures: EBITDA After Lease (“EBITDAAL”), Adjusted net financial debt After Lease, Equity Free Cash Flow After Lease.
In line with the ESMA guidance on alternative performance measures (Guidelines ESMA/2015/1415), the meaning and contents
of such are explained in the annexes and the analytical detail of the amounts of the reclassifications introduced and of the
methods for determining indicators is also provided.
The preliminary results of the 2024 financial year have not been audited by the Independent Auditors.
MAIN CHANGES IN THE SCOPE OF CONSOLIDATION
OF THE TIM GROUP
During 2024, the TIM Group:
on July 1, 2024, TIM S.p.A. transferred the Business Unit – consisting of the activities relating to the primary network, the
wholesale business and the entire shareholding in the subsidiary Telenergia S.r.l. – to FiberCop S.p.A., a company that
already managed the activities relating to the secondary fiber and copper network; concurrent with the transfer, TIM
S.p.A. sold its entire stake in the share capital of FiberCop S.p.A. to Optics Bidco S.p.A. (a subsidiary of Kohlberg Kravis
Roberts & Co. L.P. (“KKR”)) and, together with FiberCop S.p.A., entered into a Master Services Agreement regulating the
terms and conditions of the services provided between FiberCop S.p.A. and TIM S.p.A.. On that date, therefore, the
deconsolidation of the transferred entity occurred and the effects of the Transaction on the income statement and
financial position were recognized. The income statement figures for the transferred Business Unit transferred, for
Telenergia S.r.l. and for FiberCop S.p.A., falling under the TIM Group until the sale date, were classified as Discontinued
Operations, in accordance with IFRS 5;
On June 24, 2024, through its subsidiary Telsy S.p.A. (Domestic Business Unit), the TIM Group acquired control of QTI
S.r.l., bringing the Group’s stake in the company’s share capital from 49% to 80%. QTI S.r.l. is engaged in the
development, production and marketing of innovative hi-tech products and services.
The main changes in the scope of consolidation in 2023 were the following:
the acquisition on April 20, 2023, by Telsy S.p.A. of the entire share capital of TS-Way S.r.l., a company engaged in the
field of IT security (Domestic Business Unit);
the sale on August 4, 2023 by TIM S.p.A. of the entire share capital of TIM Servizi Digitali S.p.A. (Domestic Business Unit).
Furthermore, in November 2023 the TIM Group, through Olivetti S.p.A., had sold the Olivetti business unit dedicated to cash
systems for the retail sector to Buffetti (Dylog group).
PRELIMINARY TIM GROUP RESULTS FOR THE 2024 FINANCIAL YEAR
TIM Group’s total revenues (NetCo Discontinued Operations) in FY2024 amounted to 14,442 million euros, +0.9%
compared to FY2023 (14,311 million euros).
The breakdown of total revenues for the year 2024 by operating segment in comparison with 2023 is as follows:
(million euros)
% weight
% weight
Changes
absolute
like-for-like
Domestic
10,111
9,937
Brazil
4,366
4,412
(1.0)
Other Operations
Adjustments and eliminations
Consolidated Total
(0.2)
(0.2)
14,442
100.0
14,311
100.0
TIM Group like-for-like consolidated revenues are calculated as follows:
(million euros)
4th Quarter
4th Quarter
3,812
3,870
REVENUES
Foreign currency financial statements translation effect
% Change
% Change
(1.5)
14,442
14,311
(169)
ORGANIC REVENUES excluding non-recurring items
(323)
3,812
3,701
14,442
13,988
Master Service Agreement (MSA)
Other
3,812
3,733
14,493
14,062
Impacts deriving from:
Like-for-like ORGANIC REVENUES
TIM Group EBITDA (NetCo Discontinued Operations) in FY2024 is 4,825 million euros (4,645 million euros in FY2023, +3.9%).
EBITDA by operating segment for 2024, compared to 2023, was as follows:
(million euros)
Changes
% weight
% weight
absolute
like-for-like
Domestic
2,674
2,512
Brazil
2,155
2,141
(0.1)
(0.2)
Other Operations
Adjustments and eliminations
Consolidated Total
4,825
100.0
4,645
100.0
TIM Group like-for-like consolidated EBITDA is calculated as follows:
(million euros)
4th Quarter
4th Quarter
% Change
% Change
1,086
1,239
(12.3)
4,825
4,645
EBITDA
Foreign currency financial statements translation effect
Non-recurring expenses (income)
Effect of translating non-recurring expenses (income) in
currency EBITDA – excluding non-recurring items
ORGANIC
(157)
4,925
5,143
(1,814)
1,091
1,257
(13.2)
New Master Service Agreement (MSA)
(446)
(902)
Reversal of previous MSA between TIM and FiberCop
Other
(4.2)
Impacts deriving from:
Like-for-like ORGANIC EBITDA
1,089
1,017
4,339
4,006
The headcount of the TIM Group at December 31, 2024 was 26,887, of which 17,521 in Italy (47,180 at December 31, 2023, of
which 37,670 in Italy).
Capital expenditures and investments for mobile telephone licenses/spectrum of the TIM Group (NetCo Discontinued
Operations) for 2024, were 2,129 million euros (2,168 million euros in 2023).
Capex is broken down as follows by operating segment:
(million euros)
Domestic
% weight
% weight
Change
1,349
1,334
Other Operations
Adjustments and eliminations
2,129
100.0
2,168
100.0
Brazil
Consolidated Total
% of Revenues
(0.4)pp
Specifically:
the Domestic Business Unit (NetCo Discontinued Operations – Domestic ServCo) shows capital expenditures of 1,349
million euros, with a significant share aimed at Mobile and IT infrastructure development. The investment trend reflects
the increase in TIM Enterprise projects (Consip, PSN, Cloud) driven by the increased focus on ICT revenues;
the Brazil Business Unit posted capital expenditures in 2024 of 780 million euros (834 million euros for 2023). Excluding
the impact of changes in exchange rates (-61 million euros), investments increased by 7 million euros on 2023. The slight
increase is related to investments in Information Technology.
Adjusted net financial debt amounted to 10,126 million euros at December 31, 2024, a decrease of 15,530 million euros
compared to December 31, 2023 (25,656 million euros). This reduction was mainly due to the NetCo sale transaction finalized
on July 1, 2024, which resulted in a deleverage of 15.3 billion euros (including 1,960 million euros from the deconsolidation
of net financial debt for lease contracts recognized in application of IFRS16), in addition to the positive trend in operationalfinancial management.
For a better understanding of the information, the table below shows the various ways by which the Net Financial Debt can
be shown:
(million euros)
12/31/2024
12/31/2023
Change
(a-b)
10,237
25,776
(15,539)
(111)
(120)
Adjusted Net Financial Debt
10,126
25,656
(15,530)
Leases
(2,860)
(5,307)
2,447
7,266
20,349
(13,083)
Net financial debt carrying amount
Reversal of fair value measurement of derivatives and related
financial liabilities/assets
Adjusted Net Financial Debt – After Lease
Net financial debt carrying amount amounted to 10,237 million euros at December 31, 2024, a decrease of 15,539 million
euros compared to December 31, 2023 (25,776 million euros). The reversal of the fair value measurement of derivatives and
related financial liabilities/assets saw a positive change of 9 million euros due to the dynamics of the interest rate markets
and the liquidation of a substantial portion of the derivatives portfolio, with a corresponding reduction in underlying financial
liabilities, following the transfer of the bonds of TIM S.p.A., Telecom Italia Finance S.A. and Telecom Italia Capital S.A. to
Optics BidCo S.A.; this valuation adjusts the booked Net Financial Debt with no monetary effect.
Adjusted Net Financial Debt – After Lease (net of lease contracts) was equal to 7,266 million euros at December 31, 2024,
down by 13,083 million euros compared to December 31, 2023 (20,349 million euros).
In the fourth quarter of 2024, adjusted net financial debt decreased by 777 million euros compared to September 30, 2024
(10,903 million euros).
(million euros)
12/31/2024
9/30/2024
Change
(a-b)
10,237
10,904
(667)
(111)
(110)
Adjusted Net Financial Debt
10,126
10,903
(777)
Leases
(2,860)
(2,915)
7,266
7,988
(722)
Net financial debt carrying amount
Reversal of fair value measurement of derivatives and related
financial liabilities/assets
Adjusted Net Financial Debt – After Lease
As of December 31, 2024, the TIM Group’s available liquidity margin was equal to 8,364 million euros and calculated
considering:
“Cash and cash equivalents” and “Current securities other than investments” for a total of 4,364 million euros (4,695
million euros at December 31, 2023), also including 199 million euros in repurchase agreements expiring by January 2025;
Sustainability-linked Revolving Credit Facility amounting to 4,000 million euros, totally available.
This margin covers the Group’s non-current financial liabilities (including the portion of the medium/long-term loans due
within twelve months) maturing for at least the next 36 months.
For the purposes of determining the available liquidity margin, the “BTPs July 15, 2028” held by Telecom Italia Finance S.A.
and subject to a securities lending agreement with TIM S.p.A. signed on October 18, 2023 were not considered; in particular,
of the total nominal 131 million euros of securities subject to the loan, a part corresponding from time to time to a market
value of 99 million euros was pledged by TIM S.p.A. on October 25, 2023 against a guarantee bank issued on the same date
by MPS in favor of INPS, in support of the application of Art. 4 of Law no. 92 of June 28, 2012.
PRELIMINARY RESULTS OF THE BUSINESS UNITS
Domestic
Domestic Business Unit (NetCo Discontinued Operations – Domestic ServCo) revenues amounted to 10,111 million euros,
up 174 million euros compared to 2023 (+1.8%).
Domestic like-for-like revenues are calculated as follows:
(million euros)
4th Quarter
4th Quarter
2,758
2,704
Changes
10,111
9,937
Changes
REVENUES
Foreign currency financial statements translation effect
Non-recurring income/(expenses)
2,758
2,705
Master Service Agreement (MSA)
Other
2,758
2,737
10,162
10,011
ORGANIC REVENUES – excluding non-recurring items
10,111
9,937
Impacts deriving from:
Like-for-like ORGANIC REVENUES
“Like-for-like” service revenues amounted to 9,314 million euros (+185 million euros compared to 2023, +2.0%), thanks to
the growth in ICT and Multimedia revenues despite the impact of a competitive market on the customer base.
“Like-for-like” Handset and Bundle & Handset revenues, including the change in work in progress, totaled 848 million euros
in 2024, down 34 million euros from the previous year, due to a decline in both the TIM Enterprise and Wholesale
International Market segments.
Following the completion of the delayering operation, resulting in the sale of NetCo, the presentation of revenues has been
changed, so that the revenues shown below are divided between TIM Consumer, TIM Enterprise, and the Wholesale
International Market (TI Sparkle group), complete with the breakdown of the reference perimeter.
TIM Consumer. The reference perimeter is made up of the set of telephone and Internet services and products managed
and developed in Landline and Mobile for individuals and families (from public telephony, from caring activities and
administrative management of customers) and for customers of SMEs (Small and Medium Enterprises), SOHO (Small
Office Home Office) and other mobile operators (MVNOs); it includes the company TIM Retail, which coordinates the
activities of its stores).
The main Key Performance Indicators of TIM Consumer were as follows:
12/31/2024
12/31/2023
12/31/2022
Total Fixed accesses (thousands)
7,169
7,499
7,799
Of which active ultra-broadband accesses (thousands)
5,478
5,404
5,269
Fixed Consumer ARPU (€/month) (1)
Mobile lines at period end (thousands)
15,984
16,397
16,812
of which Human calling (thousands)
13,280
13,578
13,991
Mobile churn rate (%) (2)
Mobile Consumer Human calling ARPU (€/month) (3)
(1) Organic Consumer service revenues in proportion to the average number of Consumer accesses.
(2) Percentage of human lines discontinued in the period compared to the average human lines.
(3) Organic consumer service revenues (excluding visitors and MVNOs) in proportion to average human calling lines.
(million euros) – organic data
TIM Consumer revenues – like-forlike
Service
revenues
Handset and Bundle & Handset
revenues
4th Quarter
4th Quarter
1,551
1,524
6,078
1,375
1,393
5,546
% Change
(a-b)/b
(c-d)/d
6,040
5,538
(1.1)
TIM Consumer’s FY2024 revenues amounted to 6,078 million euros and were an improvement of 38 million euros compared
to FY2023, despite the impact of the challenging competitive environment.
Service revenues, which totaled 5,546 million euros, increased by 8 million euros compared to 2023 (+0.1%).
TIM Consumer’s Handset and Bundle & Handset revenues totaled 532 million euros, +30 million euros compared to the first
half of 2023: the change is mainly related to higher sales volumes of mobile terminals.
? TIM Enterprise. The reference perimeter consists of the set of connectivity services and products and ICT solutions
managed and developed for Top, Public Sector and Large Account customers. The following companies are included: Olivetti,
TI Trust Technologies, Telsy and Noovle.
(million euros) – organic data
TIM Enterprise revenues – like-forlike
Service revenues
Handset and Bundle & Handset
revenues
4th Quarter
4th Quarter
% Change
(a-b)/b
1,018
3,291
3,162
3,017
2,846
(9.6)
(13.3)
(c-d)/d
The segment’s revenues amounted to 3,291 million euros, up 129 million euros (+4.1%) from 2023, mainly due to the service
revenues component (+6.0%), driven by cloud and security services.
? Wholesale International Market. Includes the activities of the TI Sparkle group, which operates in the market for
international voice, data and Internet services for fixed and mobile telecommunications operators, ISPs/ASPs (Wholesale
market) and multinational companies through its own networks in the European, Mediterranean and South American markets.
Revenues for 2024 in the Wholesale International Market segment amounted to 971 million euros, down compared to 2023
(-50 million euros, -4.9%), due to the geopolitical situation that resulted in the postponement of several deals related to
fiber/spectrum sales and the rationalization of traditional voice revenues, partly offset by growth in revenues related to
mobile operator solutions.
Domestic Business Unit (NetCo Discontinued Operations – Domestic ServCo) EBITDA in 2024 amounted to 2,674 million
euros (+162 million euros compared to 2023, +6.4%).
Domestic like-for-like EBITDA is calculated as follows:
(million euros)
4th Quarter
4th Quarter
Changes
Changes
EBITDA
Foreign currency financial statements translation effect
Non-recurring expenses (income)
New Master Service Agreement (MSA)
Reversal of previous MSA between TIM and FiberCop
Other
ORGANIC EBITDA – excluding non-recurring items
(15.6)
2,674
2,512
2,774
3,160
(446)
(902)
(1,814)
2,190
2,023
(26.3)
(12.2)
Impacts deriving from:
Like-for-like ORGANIC EBITDA
Headcount at December 31, 2024 stood at 17,751 (37,901 as of December 31, 2023).
Brazil (average real/euro exchange rate 5.82877)
Revenues for 2024 of the Brazil Business Unit (TIM Brasil group) amounted to 25,448 million reais (23,834 million reais in
2023, +6.8%).
The growth was determined by service revenues (24,588 million reais vs 23,071 million reais for 2023, +6.6%) with mobile
telephony service revenues growing 6.8% in 2024 due to the continuous improvement of the post-paid segment. Revenues
from fixed services grew by 3.3% compared to 2023, driven above all by the growth rate of Ultrafibre.
Revenues from product sales totaled 860 million reais (763 million reais in 2023).
Revenues in the fourth quarter of 2024 totaled 6,631 million reais, increased by 5.7% on the fourth quarter of 2023 (6,275
million reais).
Mobile ARPU for 2024 was 31.4 reais (29.5 reais in 2023, +6.2%).
Total mobile lines at December 31, 2024 amounted to 62.1 million, +0.9 million lines compared to December 31, 2023 (61.2
million lines). Within this change, +2.6 million is attributable to the post-paid segment and -1.7 million to the pre-paid
segment. Post-paid customers represented 48.7% of the customer base as of December 31, 2024 (45.1% at December 31,
2023).
Broadband ARPU for 2024 was 97.2 reais (96.9 reais in 2023).
EBITDA in 2024 was 12,562 million reais (11,562 million reais in 2023, +8.6%) and the margin on revenues amounted to
49.4% (48.5% in 2023).
Organic EBITDA, net of the non-recurring items, increased by 8.3% and was calculated as follows:
(million Brazilian reais)
EBITDA
Changes
absolute
12,562
11,562
1,000
Non-recurring expenses (income)
ORGANIC EBITDA – excluding non-recurring items
12,562
11,604
The growth in EBITDA can mainly be attributed to the positive performance of revenues from services, partially offset by the
increase in operating costs.
The EBITDA margin stood at 49.4% in organic terms (48.7% in 2023).
EBITDA in the fourth quarter of 2024 totaled 3,325 million reais, +6.3% on the fourth quarter of 2023 (3,128 million reais).
In organic terms, as a percentage of revenues, the organic EBITDA margin for the fourth quarter of 2024 was 50.1% (49.9%
in the fourth quarter of 2023).
Headcount at December 31, 2024 stood at 9,123 (9,267 as of December 31, 2023).
TIM S.P.A. PRELIMINARY RESULTS
2024 revenues came to 9,218 million euros (8,967 million euros in 2023), with an increase of 251 million euros or +2.8%.
Like-for-like revenues are calculated as follows:
(million euros)
Change
REVENUES
Foreign currency financial statements translation effect
Non-recurring income/(expenses)
9,218
8,967
9,218
8,967
Master Service Agreement (MSA)
Other
9,285
9,101
ORGANIC REVENUES – excluding non-recurring items
Impacts deriving from:
Like-for-like ORGANIC REVENUES
“Like-for-like” service revenues amounted to 8,516 million euros (+194 million euros compared to 2023, +2.3%), thanks to the
growth in ICT and Multimedia revenues despite the impact of a competitive market on the customer base.
“Like-for-like” revenues from Handsets and Bundles & Handsets, including the change in work in progress, amounted to 769
million euros in 2024, down 10 million euros compared to 2023, mainly due to lower revenues in the Enterprise segment.
Following the completion of the delayering operation, resulting in the sale of NetCo, the presentation of revenues has been
changed, so that the revenues shown below are divided between Consumer & SMB and Enterprise, complete with the breakdown
of the reference perimeter.
Consumer + SMB The reference perimeter is made up of the set of telephone and Internet services and products managed
and developed in Landline and Mobile for individuals and families (from public telephony, from caring activities and
administrative management of customers) and for customers of SMEs (Small and Medium Enterprises), SOHO (Small Office
Home Office) and other mobile operators (MVNOs).
Consumer & SMB revenues – like-for-like
5,621
5,623
Service revenues
5,087
5,117
(0.6)
(million euros)
Handset and Bundle & Handset revenues
Change %
service revenues in the segment amounted to 5,087 million euros, down 30 million euros (-0.6%) compared to 2023, mainly
attributable to competitive dynamics and the contraction in revenues from incoming traffic for the progressive reduction of
interconnection tariffs;
Handset and Bundle & Handset revenues totaled 534 million euros, up 28 million euros compared to the first half of 2023;
the change is related to higher sales volumes of mobile terminals.
Enterprise. The reference perimeter consists of the set of connectivity services and products and ICT solutions managed and
developed for Top, Public Sector and Large Account customers.
(million euros)
Enterprise revenues – like-for-like
3,265
3,065
Service revenues
3,031
2,790
(14.9)
Handset and Bundle & Handset revenues
Change %
Specifically, revenues from Enterprise services totaled 3,031 million euros, an increase of 241 million euros (+8.6%) over
2023, due to growth in cloud and security services.
EBITDA for FY2024 is 2,330 million euros (+131 million euros over FY2023, +6.0%).
Like-for-like EBITDA is calculated as follows:
(million euros)
EBITDA
2,330
2,199
Change
Foreign currency financial statements translation effect
Non-recurring expenses (income)
2,427
2,832
ORGANIC EBITDA – excluding non-recurring items
(14.3)
Impacts deriving from:
New Master Service Agreement (MSA)
(902)
(1,814)
Reversal of previous MSA between TIM and FiberCop
Other
1,849
1,737
Like-for-like ORGANIC EBITDA
AFTER LEASE INDICATORS
TIM Group, in addition to the conventional financial performance measures established by the IFRS Accounting Standards, uses
certain alternative performance measures in order to present a better understanding of the trend of operations and financial
condition. Specifically, following the adoption of IFRS 16, the TIM Group presents the following additional alternative performance
measures:
LIKE-FOR-LIKE EBITDA AFTER LEASE – TIM GROUP
(million euros)
4th Quarter
4th Quarter
1,089
1,017
(162)
Like-for-like ORGANIC EBITDA
Lease payments
Like-for-like EBITDA After Lease (EBITDAAL)
Changes
4,339
4,006
Changes
absolute
absolute
(153)
(5.9)
(667)
(670)
3,672
3,336
Changes
absolute
2,190
2,023
LIKE-FOR-LIKE EBITDA AFTER LEASE – DOMESTIC
(million euros)
4th Quarter
4th Quarter
Changes
Like-for-like ORGANIC EBITDA
Lease payments
(176)
(166)
(6.0)
Like-for-like EBITDA After Lease (EBITDAAL)
2,014
1,857
absolute
EBITDA AFTER LEASE – BRAZIL
(million euros)
4th Quarter
4th Quarter
Changes
absolute
ORGANIC EBITDA – excluding non-recurring items
Lease payments (*)
EBITDA After Lease (EBITDA-AL)
Changes
absolute
2,155
1,991
(119)
(109)
(9.2)
(491)
(504)
1,664
1,487
(*) Does not include approximately 287 million reais in sanctions associated with the decommissioning plan following the acquisition of the Oi Group’s movable assets;
approximately 49 million euros in 2024 (approx. 238 million reais; approx. 44 million euros in 2023).
ADJUSTED NET FINANCIAL DEBT AFTER LEASE – TIM GROUP
(million euros)
12/31/2024
12/31/2023
Change
Adjusted Net Financial Debt
10,126
25,656
(15,530)
Leases
(2,860)
(5,307)
7,266
20,349
Adjusted Net Financial Debt – After Lease
2,447
(13,083)
TIM S.p.A. LIKE-FOR-LIKE EBITDA AFTER LEASE
(million euros)
Changes
absolute
Like-for-like ORGANIC EBITDA
1,849
1,737
Lease payments
(164)
(153)
Like-for-like EBITDA After Lease (EBITDA-AL)
1,685
1,584
ADJUSTED NET FINANCIAL DEBT AFTER LEASE TIM S.p.A.
(million euros)
12/31/2024
12/31/2023
Change
Adjusted Net Financial Debt
9,915
21,149
(11,234)
Leases
(835)
(3,103)
2,268
Adjusted Net Financial Debt – After Lease
9,080
18,046
(8,966)
EVENTS AFTER DECEMBER 31, 2024
In Brazil, TIM S.A. settles disputes with C6 group and monetizes its
interests
On February 11, 2024, TIM S.A. (“TIM” or the “Company”) – a Brazilian subsidiary of the TIM Group – and Banco C6 S.A. (“C6” or
the “Bank”), entered into an agreement (“Agreement”) that will end all disputes related to the partnership between the two
Companies (“Partnership”) and, as a result, resolve the four arbitration proceedings currently pending.
During the Partnership period, TIM obtained the right to a minority stake in the bank’s capital, and with the termination of the
Partnership, TIM will realize total gross income of approximately 280 million Brazilian reais.
The combination of financial services with mobile telephony has produced positive effects in other areas of TIM S.A.’s business,
such as increased customer loyalty, increased digitization in the purchase of top-ups and payment of bills.
The Agreement provides for the termination of the Partnership, as well as the transfer of all shares held by TIM in C6, as well as
all outstanding signing bonuses, in the amount of 520 million Brazilian reais (before taxes). The transfer of shares is subject to
the approval of the Cayman Islands Monetary Authority (CIMA). Once this approval is obtained, the Agreement and Partnership
will be concluded.
TIM: BoD approves MEF and Retelit’s bid for Sparkle
TIM’s Board of Directors, which met under the chairmanship of Alberta Figari on February 12, 2025, reviewed the binding offer
for the purchase of TIM’s 100% stake in Sparkle, received the previous day from the Italian Ministry of Economy and Finance
(MEF) and Retelit.
Following an extensive and thorough review, conducted with the assistance of leading financial and legal advisors, the Board
unanimously approved – with the favorable opinion of the Related Parties Committee – the offer submitted by the MEF and
Retelit, which values Sparkle at 700 million euros.
Contracts will be signed by April 11, 2025, and the sale is expected to be finalized by the first quarter of 2026, once preparatory
activities, including obtaining Antitrust and Golden Power approvals, have been completed.
The Executive responsible for preparing the corporate accounting documents, Adrian Calaza Noia, hereby declares, pursuant to