(AGENPARL) – Wed 07 May 2025 Press Release
Rome, May 7, 2025
TIM: REVENUES AND EARNINGS UP IN THE FIRST THREE
MONTHS OF 2025
Organic results Q1 20251:
GROUP TOTAL REVENUES RISE TO €3.3 BLN (+2.7% YoY)
GROUP EBITDA AFTER LEASE UP BY 5.4% YoY AT €0.8
NET DEBT AFTER LEASE AT €7.5 BLN
Operating highlights:
TIM DOMESTIC TOTAL REVENUES GROW TO €2.2 BLN (+1.6% YoY)
AND EBITDA AFTER LEASE UP BY 4.0% YoY TO €0.4 BLN
GROWTH IN TOTAL REVENUES FOR TIM CONSUMER (€1.5 BLN,
+0.3% YOY) AND FOR TIM ENTERPRISE (€0.8 BLN, +4.5% YoY)
TIM BRASIL TOTAL REVENUES UP TO €1 BLN (+4.9% YoY) AND
EBITDA AFTER LEASE OF €0.4 BLN (+6.5% YoY)
TIM’s Board of Directors met today under the chairmanship of Alberta Figari and
approved the Company’s Financial Information at March 31, 2025. The first quarter
of the year sees a continuation of the growth path undertaken by the Group, with
revenues and margins growing in line with expectations, thanks to strong
business performance in both the domestic and Brazilian markets.
The quarter was also marked by Poste Italiane becoming a shareholder in TIM,
followed by the announcement of an increase of its stake, expected to be finalised
soon, up to 24.81% of the ordinary shares.
In the financial and operating results of the TIM Group for the first quarter of 2025, the TI Sparkle
Group has been classified, pursuant to IFRS 5, as discontinued operation, as all the conditions
necessary for the completion of the disposal have been met. Therefore, the TIM Domestic perimeter
does not include TI Sparkle Group, unless otherwise indicated.
In order to provide a better understanding of the business performance, like-for-like organic data for
the first quarter of 2024 is presented. These figures consider TI Sparkle Group as a discontinued
operation as well as the NetCo transaction as if it had occurred at the beginning of the reference
period (January 1), simulating the impact of the relationship between TIM and NetCo/FiberCop,
regulated by the Master Service Agreement (MSA).
ORGANIC RESULTS Q1 2025
Group total revenues amounted to 3.3 billion euros, up by 2.7% year-on-year
(+1.6% in domestic to 2.2 billion euros, +4.9% in Brazil to 1.0 billion euros);
Group service revenues rose by 3.3% year-on-year to 3.1 billion euros (+2.1% in
domestic to 2.1 billion euros, +5.6% in Brazil to 1.0 billion euros);
Group EBITDA increased, up by 5.7% year-on-year to 1.0 billion euros (+4.1% in
domestic to 0.5 billion euros, +6.8% in Brazil to 0.5 billion euros);
Group EBITDA After Lease grew sharply, rising 5.4% year-on-year to 0.8 billion
euros (+4.0% in domestic to 0.4 billion euros, +6.5% in Brazil to 0.4 billion
euros);
TIM Consumer recorded total revenues slightly up (+0.3% year-on-year) to
1.5 billion euros. The process of revenue stabilization continues, with churn
down year-on-year and ARPU growing in the fixed segment and substantially
stable in mobile. For the first time in several years, the quarter saw a
substantially neutral balance of lines relating to mobile number portability
(“MNP”). Repricing activities for 2025 also began in the quarter, involving
approximately 1.1 million fixed lines and approximately 0.7 million consumer
mobile lines, whose effects will be reflected starting from the second quarter.
TIM Enterprise reported total revenues of 0.8 billion euros (+4.5% year-onyear), continuing to outperform the reference market. For the first time, Cloud
(service revenues +24% YoY) was TIM Enterprise’s main business line, also due
to the services offered by Polo Strategico Nazionale), whose contribution in
terms of revenues has doubled year-on-year.
TIM Brasil reported total revenues of 1.0 billion euros (+4.9% year-on-year) and
an EBITDA After Lease of 0.4 billion euros (+6.5% year-on-year), continuing the
growth trajectory of the last two years thanks to the mobile segment
momentum.
During the quarter, transformation actions aimed at increasing the level of
structural efficiency of the domestic perimeter also continued successfully,
benefiting the period’s EBITDA AL – CAPEX by approximately 40 million euro.
Group capital expenditures amounted to 0.5 billion euros, equal to 13.9% of
revenues.
The Group’s adjusted Net Financial Debt After Lease as of March 31, 2025 was
7.5 billion euros2 compared to about 7.3 billion euros at the end of 2024 with a
trend linked to the seasonality of working capital, which has seen a higher
absorption due to the significant investments made in the last quarter of 2024.
With a ratio between adjusted Net Financial Debt After Lease and Organic
EBITDA After Lease below 2.1x, the TIM Group confirms its position as the listed
telecommunications operator with the most solid financial structure in Europe.
In the first three months of 2025, the Group also optimised the structure of the
Revolving Credit Facility, reducing its maximum amount to 3 billion euros and
extending its maturity to 2030, optimising the related charges.
The liquidity margin covers financial maturities until 2028.
Including debt related to TI Sparkle Group.
Based on the results as of March 31, 2025, the Group confirms all guidance for the
year in progress.
TIM Press Office
https://www.gruppotim.it/media
X: @GruppoTIM
TIM Investor Relations
https://www.gruppotim.it/investor_relations
The TIM Group’s results as of March 31, 2025 will be presented to the financial community via
webcast on May 8, 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.
INTRODUCTION
TIM voluntarily prepares and publishes periodic financial information for the first and third quarters of each
financial year as part of the Company’s policy to regular report its financial and operating performance to the
market and investors in line with best market practices.
In this Financial Report at March 31, 2025, the Sparkle Group – which develops fiber optic networks for international
wholesale customers – is classified as an Asset Held for Sale under IFRS 5, as all conditions necessary for the full
sale of the investment held in TI Sparkle and the exit of the Sparkle Group from the scope of consolidation of the
TIM Group (Domestic). For comparison purposes only, data already published in financial reporting as of March 31,
2024 have been reclassified consistently, as required by IFRS 5.
In addition, it should be noted that on July 1, 2024 assets pertaining to the domestic fixed network component (the
primary network and wholesale business of TIM S.p.A.) were sold to FiberCop S.p.A. and Telenergia S.r.l. (“NetCo
Transaction”). To enable a better understanding of the performance of that business, a section has been inserted
below containing organic economic and financial information relating to the operating performance in the first
quarter of 2024, reworked to provide like-for-like information. Such organic 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 TIM Group perimeter, as it had occurred at the start of the reference period (January 1).
Therefore, for all organic data the like-for-like definition is used to highlight both organic information (Brazil
Business Unit) and organic information as reconstructed above (TIM S.p.A, Domestic Business Unit, TIM Group),
simulating for the first quarter of 2024, the impact of the relationship between TIM and NetCo/FiberCop, regulated
by the Master Service Agreement (MSA).
The consolidated data included in the TIM Group’s periodic financial information as at March 31, 2025 have been
prepared in accordance with the IFRS standards issued by the International Accounting Standard Board and
endorsed by the European Union. The measurement criteria and consolidation methods are consistent with those
adopted
preparation
Consolidated
Financial
Statements
year ended December 31, 2024 (to which reference should be made for a more extensive discussion), except as
regards the amendments to accounting standards issued by the IASB and effective from January 1, 2025. These
figures have not been audited.
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 nonrecurring 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 (“EBITDA-AL”), 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.
Finally, it should be noted that the section “Business Outlook for the year 2025” contains forward-looking
statements regarding the Group’s intentions, beliefs and current expectations in relation to the Group’s financial
results and other aspects of the Group’s activities and strategies. Readers of this publication should not place
undue reliance on such forward-looking statements, as the actual results could differ materially from those
contained in the forecasts as a result of risks and uncertainties arising from a variety of factors, most of which are
beyond the Group’s control. For further details, please refer to the “Main risks and uncertainties” chapter, as well
as the Annual Financial Report at December 31, 2024, which details the main risks relating to the TIM Group’s
business activities which could affect, including considerably, the ability to achieve the objectives set.
The main financial results of the TIM Group, in which the Telecom Italia Sparkle Group is classified as
Discontinued Operations, were as follows: “TIM Group (Sparkle Discontinued Operations)”. In particular, the
economic and financial results relating to the Telecom Italia Sparkle Group have been classified under “Assets
sold/Available-for-Sale Assets” pursuant to IFRS 5.
TIM Group (Sparkle Discontinued Operations) financial highlights
(million euros) – reported data
1st Quarter 2025 1st Quarter 2024
Revenues
% Change
(a-b)
(13.0)
3,276
3,764
EBITDA
1,400
(32.8)
EBITDA Margin
28.7%
37.2%
(8.5) pp
(4.6)
EBIT Margin
0.6 pp
(124)
(400)
3/31/2025
12/31/2024
(49.9)
Change Amount
Profit (loss) for the period attributable to owners of the Parent
Capital Expenditures & spectrum
(a-b)
Adjusted Net Financial Debt
10,446
10,126
Adjusted Net Financial Debt – After Lease
7,519
7,266
1st Quarter 2025 1st Quarter 2024
Change Amount
(million euros) – reported data
(a-b)
(790)
(198)
(973)
Adjusted Net Financial Debt (2)
10,446
26,644
(16,198)
Adjusted Net Financial Debt – After Lease(2)
7,519
21,370
(13,851)
Equity Free Cash Flow
Equity Free Cash Flow After Lease
(1) For details, please refer to the annex.
(2) The change in the fair value of derivatives and related financial liabilities/assets is adjusted by the booked Net Financial Debt with no monetary
effect.
The following are the main financial results of the like-for-like TIM Group in which the organic economic and
financial information relating to the operating performance for the first quarter of 2024 have been reworked, for
comparison purposes only, 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) TIM Group perimeter, as if it had occurred at the start of the reference
period (January 1). The Sparkle Group is classified as Discontinued Operations, pursuant to IFRS 5.
Like-for-like TIM Group results
(million euros) – organic data (*)
1st Quarter 2025 1st Quarter 2024
% Change
Revenues
3,276
3,189
TIM Domestic
2,245
2,209
1,485
1,481
of which TIM Consumer
TIM Brasil
of which TIM Enterprise
1,038
Service revenues
3,069
2,970
TIM Domestic
2,063
2,020
1,356
1,357
(0.1)
of which TIM Consumer
TIM Brasil
of which TIM Enterprise
1,013
EBITDA
TIM Domestic
TIM Brasil
EBITDA AL
TIM Domestic
TIM Brasil
CAPEX (net of telecommunications licenses)
(5.8)
TIM Domestic
(9.4)
TIM Brasil
(1.2)
EBITDA AL-CAPEX (net of telecommunications licenses)
TIM Domestic
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.
TIM GROUP’S ESG PERFORMANCE
The main ESG-related actions and their impacts during the first quarter of 2025 were as follows.
ACTIONS IMPACTING THE ENVIRONMENT AND CIRCULAR ECONOMY
Sparkle has signed an agreement with Oceanic Environmental Cables (OEC) to recover and recycle more
than 22,000 km of disused submarine telecommunications cables (telegraph, coaxial and fiber optic). This
partnership is expected to lead to estimated savings of approximately 35,000 tons of CO₂ as the reuse of
recycled materials reduces the need to extract new resources and, consequently, promotes the adoption of
circular models in the submarine telecommunications sector.
ACTIONS WITH SOCIAL IMPACTS
TIM Enterprise has partnered with GETEC, the European leader in energy efficiency and renewable energy
services. Together, they have developed an innovative project that will enable the recovery of the heat
generated by the TIM Data Center’s co-generator to power the district heating system serving over 5,000
homes in the ALER district of Rozzano, Milan. The scheme promotes a local-integration based approach,
aimed at more closely entwining technological infrastructure with the urban environment. Instead of heat
being dispersed during the electricity production process, it is reused locally for the benefit of the residents.
TIM has joined the ELIS Consortium’s “Include to Grow” (Includere per Crescere) project. The scheme
promotes the workplace inclusion of those who are unemployed, underemployed or in precarious social
circumstances. The initiative includes training courses, career coaching and job placements for women who
have interrupted their careers, people with disabilities, over 55s, migrants, and individuals with criminal
records. TIM’s participation underlines the Company’s commitment to promoting a more inclusive, socially
aware workplace.
MAIN CHANGES IN THE SCOPE OF
CONSOLIDATION OF THE TIM GROUP
There were no significant changes in the scope of consolidation during the first quarter of 2025 and the first
quarter of 2024.
TIM GROUP RESULTS FOR Q1 2025
TIM Group’s total revenues (Sparkle Discontinued Operations) in the first quarter of 2025 amounted to 3,276
million euros, -13.0% compared to the first quarter of 2024 (3,764 million euros).
The breakdown of total revenues for the first quarter of 2025 by operating segment in comparison with the first
quarter of 2024 is as follows:
(million euros)
1st Quarter 2025
1st Quarter 2024
Variations
% weight
% weight
absolute
like-for-like
Domestic
2,245
2,639
(394)
(14.9)
Brazil
1,038
1,134
(8.5)
(13.0)
Other Operations
Adjustments and eliminations
(0.2)
(0.2)
3,276
100.0
3,764
100.0
(488)
Consolidated Total
TIM Group like-for-like consolidated revenues are calculated as follows:
(million euros)
% Change
REVENUES
3,276
3,764
(13.0)
Foreign currency financial statements translation effect
(144)
Effect of change in the scope of consolidation (*)
ORGANIC REVENUES excluding non-recurring items
(464)
3,276
3,156
3,276
3,189
Impacts deriving from:
Master Service Agreement (MSA)
Like-for-like ORGANIC REVENUES
(*) Refers to 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”).
TIM Group’s EBITDA (Sparkle Discontinued Operations) in the first quarter of 2025 was 941 million euros (1,400
million euros in the first quarter of 2024, -32.8%).
EBITDA by operating segment for the first quarter of 2025, compared to the first quarter of 2024, was as follows:
(million euros)
1st Quarter 2025
1st Quarter 2024
Variations
% weight
% weight
absolute
like-for-like
Domestic
(422)
(48.7)
Brazil
(7.5)
Other Operations
(0.2)
(0.1)
Adjustments and eliminations
100.0
1,400
100.0
(459)
(32.8)
Consolidated Total
TIM Group like-for-like consolidated EBITDA is calculated as follows:
1st Quarter 2025 1st Quarter 2024
(million euros)
EBITDA
% Change
1,400
Foreign currency financial statements translation effect
(32.8)
Effect of change in the scope of consolidation (*)
(188)
Non-recurring expenses (income)
ORGANIC EBITDA – excluding non-recurring items
1,211
(19.1)
Impacts deriving from:
New Master Service Agreement (MSA)
(453)
Reversal of previous MSA between TIM and FiberCop
Like-for-like ORGANIC EBITDA
(*) Refers to 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 and includes non-recurring costs of 12 million euros.
TIM Group’s EBIT (Sparkle Discontinued Operations) in the first quarter of 2025 was 209 million euros (219
million euros in the first quarter of 2024).
The net result for Q1 2025, attributable to the Owners of the Parent, recorded a loss of 124 million euros (-400
million euros in Q1 2024), including a net loss for discontinued operations/assets held for sale (Discontinued
Operations and Related Charges), for a total of -21 million euros (-17 million euros in Q1 2024).
The TIM Group headcount at March 31, 2025 was 26,282, including 17,045 in Italy (26,887 at December 31, 2024,
including 17,521 in Italy).
Capital expenditures and investments for mobile telephone licenses/spectrum of the TIM Group (Sparkle
Discontinued Operations) for the first quarter of 2025, were 457 million euros (913 million euros for the first
quarter of 2024).
Capex is broken down as follows by operating segment:
(million euros)
1st Quarter 2025
1st Quarter 2024
% weight
Change
% weight
Domestic
(421)
Brazil
Other Operations
Adjustments and eliminations
Consolidated Total
100.0
100.0
(456)
% of Revenues
(10.4) pp
Specifically:
the Domestic Business Unit (Sparkle Discontinued Operations) presents capital expenditures of 240 million
euros, with a significant share aimed at the development of Mobile and IT infrastructure;
the Brazil Business Unit recorded capital expenditure of 217 million euros in Q1 2025 (252 million euros in
Q1 2024). Excluding the effects of exchange rate fluctuations (-32 million euros), the Business Unit’s capital
expenditures were in line with the same period of 2024.
The Group’s Operating Free Cash Flow (OFCF, calculated by applying IFRS 16) for the first quarter of 2025
was positive and amounted to 144 million euros (positive for 30 million euros for the first quarter of 2024).
Equity Free Cash Flow (calculated by applying IFRS 16) for the first quarter of 2025 amounted to negative 89
million euros (negative for 790 million euros for the first quarter of 2024). This financial measure represents
the free cash flow available for the remuneration of own capital, to repay debt and to cover any financial
investments and payments of licenses and frequencies.
Net financial debt carrying amount amounted to 10,555 million euros at March 31, 2025, an increase of 318
million euros compared to December 31, 2024 (10,237 million euros). This increase is mainly due to the dynamics
of operational-financial management and to higher lease payables.
Adjusted net financial debt (including IFRS 16 net debt) amounted to 10,446 million euros at March 31, 2025, an
increase of 320 million euros compared to December 31, 2024 (10,126 million euros). The reversal of the fair value
measurement of derivatives and related financial liabilities/assets reports a positive change of 2 million euros;
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 7,519 million euros at March 31,
2025, up by 253 million euros compared to December 31, 2024 (7,266 million euros).
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)
3/31/2025
12/31/2024
Change
(a-b)
10,555
10,237
(109)
(111)
Adjusted Net Financial Debt
10,446
10,126
Leases
(2,902)
(2,860)
7,519
7,266
Net financial debt carrying amount
Reversal of fair value measurement of derivatives and related
financial liabilities/assets
Leasing – Discontinued operations/Non-current assets held for
Adjusted Net Financial Debt – After Lease
As of March 31, 2025, the TIM Group’s available liquidity margin was equal to 6,686 million euros and calculated
considering:
“Cash and cash equivalents” and “Current securities other than investments” for a total of 3,785 million
euros (4,364 million euros at December 31, 2024). 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.@@Revolving Credit Facility amounting to 3,000 million euros, totally available.@@ On March 31, 2025,
TIM signed an agreement to amend the existing Revolving Credit Facility, effective April 4, 2025, extending
its maturity to April 4, 2030 and reducing its amount from 4 to 3 billion euros.
This margin allows coverage of the Group’s non-current financial liabilities (including the medium-long term
portion maturing within twelve months) maturing for at least the next 24 months.
It should be noted that the sale of non-recourse trade receivables to factoring companies completed in Q1 2025
had a positive effect of 773 million euros on net financial debt at March 31, 2025 (1,134 million euros at December
31, 2024).
RESULTS OF THE BUSINESS UNITS
Domestic
Revenues
Domestic Business Unit (Sparkle Discontinued Operations) revenues amounted to 2,245 million euros, down
394 million euros compared to the first quarter of 2024 (-14.9%).
Domestic like-for-like revenues are calculated as follows:
1st Quarter 2025 1st Quarter 2024
(million euros)
Change
REVENUES
Effect of change in the scope of consolidation (*)
ORGANIC REVENUES – excluding non-recurring items
2,245
2,639
(463)
2,245
2,176
(14.9)
Impacts deriving from:
Master Service Agreement (MSA)
Like-for-like ORGANIC REVENUES
2,245
2,209
(*) Refers to 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”).
“Like-for-like” service revenues amounted to 2,063 million euros (+43 million euros compared to the first
quarter of 2024, +2.1%), thanks to growth in ICT revenues despite the impact of the competitive environment on
the customer base.
“Like-for-like” Handset and Bundle & Handset revenues, including the change in work in progress, amounted
to 182 million euros in the first quarter of 2025, down 7 million euros compared with the first quarter of 2024,
reflecting the decline in the TIM Enterprise segment.
Following the completion of the delayering operation, resulting in the sale of NetCo, the revenues split
between TIM Consumer and TIM Enterprise are set out below, complete with an analytical description 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:
3/31/2025
7,111
12/31/2024
7,169
3/31/2024
7,414
Of which active ultra-broadband accesses (thousands)
5,512
5,478
5,438
Fixed Consumer ARPU (€/month) (1)
Mobile lines at period end (thousands)
15,873
15,984
16,245
of which Human calling (thousands)
13,502
Total Fixed accesses (thousands)
13,233
13,280
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. The figures for financial year 2024 have been
recognised proforma at the same perimeter as for financial year 2025.
(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 lines calling.
(million euros) – organic data
TIM Consumer revenues – like-forlike
Service
revenues
Handset and Bundle & Handset
revenues
1st Quarter
1st Quarter
Change %
(a-b)/b
1,485
1,481
1,356
1,357
(0.1)
TIM Consumer’s revenues the first quarter of 2025 amounted to 1,485 million euros and were an improvement
of 4 million euros compared to the first quarter of the previous year, despite the impact of the challenging
competitive environment.
Service revenues, which amounted to 1,356 million euros, remained in line with the first quarter of 2024.
TIM Consumer’s Handset and Bundle & Handset revenues totalled 129 million euros, +5 million euros compared
to the first quarter of 2024.
TIM Enterprise. This segment comprises the connectivity services and products and the 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
1st Quarter
1st Quarter
Change %
(a-b)/b
TIM Enterprise revenues – like-forlike
Service
revenues
Handset and Bundle & Handset
revenues
(17.2)
The segment’s revenues amounted to 760 million euros, up 33 million euros (+4.5%) compared to the first
quarter of 2024, mainly thanks to the services revenue component (+6.6%), driven by IT cloud services.
EBITDA
The EBITDA for the first quarter of 2025 of the Domestic Business Unit (Sparkle Discontinued Operations)
amounted to 445 million euros (-422 million euros compared to the first quarter of 2024, -48.7%).
Domestic like-for-like EBITDA is calculated as follows:
(million euros)
1st Quarter 2025 1st Quarter 2024
Change
EBITDA
Effect of change in the scope of consolidation (*)
(188)
Non-recurring expenses (income)
ORGANIC EBITDA – excluding non-recurring items
New Master Service Agreement (MSA)
(453)
Reversal of previous MSA between TIM and FiberCop
Like-for-like ORGANIC EBITDA
(48.7)
(35.5)
Impacts deriving from:
(*) Refers to 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 and includes non-recurring costs of 12 million euros.
Domestic Business Unit (Sparkle Discontinued Operations) EBIT for the first quarter of 2025 was negative for 5
million euros (-15 million euros compared to the first quarter of 2024).
Headcount at March 31, 2025 stood at 17,087 (17,751 at December 31, 2024).
Brazil (average real/euro exchange rate 6.15925)
Revenues of the Brazil Business Unit (TIM Brasil group) in Q1 2025 were 6,394 million reais (6,096 million reais
in Q1 2024, +4.9%).
The growth was determined by service revenues (6,241 million reais vs 5,910 million reais for the first quarter of
2024, +5.6%) with mobile telephony service revenues growing 6.2% in the first quarter of 2025 due to the
continuous improvement of the post-paid segment. Revenues from fixed telephony services decreased by 4.0%
compared to the first quarter of 2024, mainly due to the trend in the Ultrafibre offering.
Revenues from product sales totaled 153 million reais (186 million reais in Q1 2024).
Mobile ARPU in Q1 2025 totaled 31.9 reais (30.4 reais in Q1 2024, +5.0%).
Total mobile lines at March 31, 2025 amounted to 62.0 million, unchanged compared to December 31, 2024.
The positive performance of the post-paid segment was offset by the reduction of lines in the pre-paid segment.
Post-paid customers represented 49.6% of the customer base as of March 31, 2025 (48.7% as of December 31,
2024).
Broadband ARPU in Q1 2025 totaled 93.2 reais (95.8 reais in Q1 2024).
EBITDA in Q1 2025 was 3,052 million reais (2,876 million reais in Q1 2024, +6.1%) and the margin on revenues
amounted to 47.7% (47.2% in Q1 2024).
Organic EBITDA, net of the non-recurring items, increased by 6.8% and was calculated as follows:
(million Brazilian reais)
1st Quarter
1st Quarter
Non-recurring expenses (income)
3,052
ORGANIC EBITDA – excluding non-recurring items
3,071
EBITDA
Variations
absolute
2,876
2,876
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 48.0% in organic terms (47.2% for the first quarter of 2024).
EBIT for Q1 2025 came to 1,318 million reais (1,135 million reais in Q1 2024, +16.1%).
Organic EBIT – net of the non-recurring items in Q1 2025 amounted to 1,337 million reais (1,135 million euros in
Q1 2024), with an EBITDA margin of 20.9% (18.6% in Q1 2024).
Organic EBIT, net of the non-recurring items, was calculated as follows:
(million Brazilian reais)
Non-recurring expenses (income)
ORGANIC EBIT – excluding non-recurring items
1st Quarter
1st Quarter
Variations
1,318
1,135
1,337
1,135
absolute
Headcount at March 31, 2025 stood at 9,182 (9,123 at December 31, 2024).
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)
1st Quarter
1st Quarter
Variations
absolute
Like-for-like ORGANIC EBITDA
Lease payments
(165)
(154)
(7.1)
Like-for-like EBITDA After Lease (EBITDA-AL)
1st Quarter
1st Quarter
LIKE-FOR-LIKE EBITDA AFTER LEASE – DOMESTIC
(million euros)
Variations
absolute
Like-for-like ORGANIC EBITDA
Lease payments
(4.8)
Like-for-like EBITDA After Lease (EBITDA-AL)
1st Quarter
1st Quarter
ORGANIC EBITDA – excluding non-recurring items
Lease payments (*)
(121)
EBITDA After Lease (EBITDA-AL)
EBITDA AFTER LEASE – BRAZIL
(million euros)
Variations
absolute
(112)
(8.0)
(*) Does not include approximately 31 million reais in sanctions associated with the decommissioning plan following the acquisition of the Oi Group’s movable assets;
approximately 5 million euros for the first quarter of 2025 (approx. 27 million reais; approx. 5 million euros for the first quarter of 2024).
ADJUSTED NET FINANCIAL DEBT AFTER LEASE – TIM GROUP
(million euros)
3/31/2025
12/31/2024
Change
Adjusted Net Financial Debt
10,446
10,126
Leases
(2,927)
(2,860)
Adjusted Net Financial Debt – After Lease
7,519
7,266
1st Quarter 2025
1st Quarter 2024
Change
Equity Free Cash Flow
(790)
Lease contract payments (principal share)
(109)
(183)
Equity Free Cash Flow After Lease
(198)
(973)
EQUITY FREE CASH FLOW AFTER LEASE – TIM GROUP
(million euros)
BUSINESS OUTLOOK FOR THE YEAR 2025
In light of the performance of the main business segments in the first three months of 2025. The guidance previously
communicated with the approval of the TIM 2025-2027 “Free to Run” Business Plan is confirmed.
EVENTS AFTER MARCH 31, 2025
TIM: signed an agreement with MEF and Retelit to sell Sparkle
See the press release issued on April 14, 2025.
MAIN RISKS AND UNCERTAINTIES
Risk management is a strategic value-creation tool for the TIM Group, which has adopted an Enterprise Risk Management
model, which is continuously being improved and aligned with international regulations and standards and enables risks to
be identified, assessed and managed in a homogenous way within the Group, highlighting potential synergies between the
players involved in the assessment of the Internal Control and Risk Management System.
The Enterprise Risk Management process is integrated with strategic and operational planning processes and is designed to
identify potential events that may affect the company’s business so that these risks can be managed within acceptable
limits (i.e. keeping risks at a level that does not compromise the TIM Group’s financial, operational and reputational stability),
providing a reference framework to support the achievement of its Business Plan.
In addition, the TIM Group, which has always been attentive to sustainability issues, recognizes and integrates risks
considered material by internal and external stakeholders, and/or inferred from the dual materiality analysis, based on
financial materiality, which influences the company’s income and financial performance, and impact materiality, which
highlights how the company’s activities may affect the environment, society and stakeholders, contributing to a more
comprehensive and sustainable risk management.
The Enterprise Risk Management model adopted by the TIM Group:
identifies and updates, in cooperation with the Risk Owners, the overall portfolio of risks to which the Group is exposed
through analysis of the Business Plan and the most significant investment projects;
monitors the reference context (i.e., macroeconomic and regulatory) in order to update specific analyses of the risks to
which the company’s assets may be exposed in order to intercept any changes and/or new risk scenarios, periodically
updating the Group’s risk profile;
quantitatively assesses risks both individually and from a portfolio perspective, taking possible correlations into account;
supports management in defining risk appetite and related tolerances that are preliminarily validated by the Control and
Risk Committee (CRC) and subsequently approved by the Board of Directors (BoD);
supports management in defining and monitoring risk mitigation plans and also periodically updates the CRC on the
level of risk detected, again with respect to approved tolerances, and this documentation is then submitted for final
approval to the Board of Directors;
manages the flow of information to top management and the bodies responsible for evaluating the Internal Control and
Risk Management System (ICRMS) periodically or at the express request of the Control Bodies;
periodically convenes the ERM Steering Committee for the purpose of documenting and communicating to the
respective Risk Owners the risk profile with respect to the approved tolerances, in order to promptly intervene with
appropriate remedial actions when necessary and/or as indicated by management.
For further details, please refer to the “Main risks and uncertainties” chapter of the Annual Financial Report at December 31,
2024, which details the main risks relating to the TIM Group’s business activities which could affect, including considerably,
the ability to achieve the objectives set.
The Executive responsible for preparing the corporate financial reports, Adrian Calaza Noia, hereby declares, pursuant to