(AGENPARL) - Roma, 24 Febbraio 2026 - (AGENPARL) – Tue 24 February 2026 Press Release
Rome, February 24, 2026
TIM: REVENUES AND EBITDA GROWTH, STRONG CASH GENERATION IN 2025
ALL TARGETS ACHIEVED FOR THE FOURTH CONSECUTIVE YEAR
Organic results 20251:
REVENUES INCREASE TO €13.7 BLN (+2.7% YoY)
EBITDA AFTER LEASE UP BY 6.5% YoY AT €3.7 BLN
SIGNIFICANT REDUCTION OF NET DEBT AFTER LEASE TO €6.9 BILLION,
LEVERAGE BELOW 1.9x
POST-SPARKLE SHAREHOLDERS’ REMUNERATION
REMUNERATION POLICY CONFIRMED
POLICY
BOD TO PROPOSE AT THE NEXT SHAREDHOLDERS’ MEETING €400 MILLION
SHARE BUYBACK PLAN, SUBORDINATED TO SPARKLE CLOSING, AND A
REVERSE STOCK SPLIT
2026 BUDGET AND GUIDANCE APPROVED
TIM’s Board of Directors met today under the chairmanship of Alberta Figari and examined the preliminary
results at December 31, 2025. The Board will meet to approve the annual report and the consolidated
financial statements on the coming March 11.
2025 represents the Group’s first full financial year within its new industrial and financial structure,
characterized by a simplified structure, lower capital intensity and a strong focus on sustainable cash
generation. For the fourth consecutive year, the Group has met its announced targets.
STATEMENT BY PIETRO LABRIOLA, GROUP CHIEF EXECUTIVE OFFICER:
“2025 confirms the completion of the transformation that began in 2022. TIM now features a stronger financial
structure, greater profitability and sustainable cash generation. This enables us to structure a remuneration
policy that is disciplined and consistent with our long-term objectives. Furthermore, the results of the fourth
quarter of the year confirm the growth path undertaken, with an increase in revenues and margins in line with
expectations, thanks to strong business performance in both the Domestic and Brazilian markets”.
ORGANIC RESULTS 2025
▪ Group total revenues amounted to 13.7 billion euros, up by 2.7% year-on-year (+1.9% in domestic to 9.5
billion euros, +4.6% in Brazil to 4.2 billion euros); Group service revenues rose by 3.5% year-on-year to 12.9
billion euros (+2.7% in domestic to 8.8 billion euros, +5.2% in Brazil to 4.1 billion euros);
1 In the preliminary financial and operating results of the TIM Group at December 31, 2025, Sparkle has been classified, pursuant to IFRS 5, as held for
sale. Therefore, the TIM Domestic perimeter does not include Sparkle, unless otherwise indicated.
In order to provide a better understanding of the business performance, like-for-like organic data is presented. These figures consider Sparkle as an
asset held for sale and the NetCo transaction as if it had occurred at the beginning of the reference period (January 1, 2024), therefore simulating, for
the first six months of 2024, the impact of the relationship between TIM and NetCo/FiberCop, regulated by the Master Service Agreement (MSA).
Group EBITDA increased, up by 6.4% year-on-year to 4.4 billion euros (+5.2% in domestic to 2.2 billion
euros, +7.7% in Brazil to 2.1 billion euros);
Group EBITDA After Lease also grew significantly, rising to 26.9% of revenues, to 3.7 billion euros, up 6.5%
year-on-year (+5.1% in the domestic market to 2.0 billion euros, +8.5% in Brazil to 1.7 billion euros);
TIM Consumer recorded a slight decline in total revenues (-0.9% year-on-year) to 6 billion euros, while
service revenues remained essentially stable at 5.5 billion euros (-0.6% year-on-year). TIM Consumer’s
performance is characterized by a stable retail business and a decline in MVNO business linked to the
gradual phasing of large wholesale customers between 2025 and 2026, which will lead to a normalization
of volumes during the financial year. The main KPIs showed improvement: ARPU grew strongly in the
fixed segment (+5.1% year-on-year) and rose slightly in the mobile segment (+0.4% year-on-year), thanks
in part to repricing activities carried out since the beginning of 2025, which affected approximately 4.1
million fixed lines and approximately 4.2 million mobile lines. The impact on churn was lower than
expected, remaining stable, with the net balance of lines linked to mobile number portability (MNP)
confirmed as neutral. The implementation of the Customer Platform strategy continues successfully, with
a 4.6% increase in TimVision’s service revenues and the positive market reception of the TIM Energia
service powered by Poste Italiane.
TIM Enterprise recorded total revenues of 3.5 billion euros (+7.0% year-on-year) and service revenues of
3.3 billion euros (+8.6% year-on-year), continuing to outperform the reference market, with a growth
trend that reached the fourteenth consecutive quarter. The Cloud segment remained the main and
fastest-growing business line, with service revenues up 24% YoY, also driven by the National Strategic
Hub, whose contribution doubles year on year. IoT and Security are growing, while connectivity is slightly
decreasing. The percentage of service revenues related to ICT rises to 68% (+4 percentage points yearon-year). The value of the order book is growing to over 4.0 billion euros.
TIM Brasil recorded total revenues of 4.2 billion euros (+4.6% year-on-year) and service revenues of 4.1
billion euros (+5.2% year-on-year). EBITDA After-Lease amounted to 1.7 billion euros (+8.5% year-onyear), with a growth trend for eleven consecutive quarters thanks to the boost from the mobile segment
and cost efficiency.
Group investments amounted to 1.9 billion euros, equal to 13.9% of revenues.
Strong cash generation, with an Equity Free Cash Flow After Lease of over 0.7 billion euros in the fourth
quarter2, led to a reduction in the Group’s adjusted Net Financial Debt After Lease at December 31, 2025
below the 6.9 billion euros mark3.
The ruling of the Supreme Court dated December 19, 2025, confirming the refund of the 1998 license fee,
resulting in a compensation to the TIM Group of about 1 billion euros, and the recognition of non-recurring
income in the income statement, with no effect on the net financial position in 2025. The positive impact on
the net financial position is expected in 2026.
The consolidated financial statements of the TIM Group – Domestic Business Unit as of December 31, 2025,
also take into account the new forward-looking assessment of the recognition in the income statement of
deferred contract costs of the fixed network, which has been reduced from 8 to 4 years, resulting in the
recognition of higher costs (among non-recurring items) at December 31, 2025, a non-recurring item of
approximately 0.6 billion euros, mainly in “Other operating costs”, with no impact on financial indicators.
The Board of Directors approved the updated budget and guidance for 2026, which confirms the growth
trends forecast in the targets already presented to the market for the financial year.
2 Including the contribution related to Sparkle. The final ruling of the Supreme Court in favour of the TIM Group regarding the 1998 license fee had
no impact on the NFP as of December 31, 2025.
3 Including the net debt of Sparkle. The final ruling of the Supreme Court in favour of the TIM Group regarding the 1998 license fee had no impact on
the NFP as of December 31, 2025.
Below are the financial targets4:
Group revenues up between 2 and 3% from 13.7 billion euros in 2025; TIM Domestic revenues up between
1 and 2% from 9.5 billion euros in 2025.
Group EBITDA After Lease up between 5 and 6% from 3.7 billion euros in 2025; for TIM Domestic EBITDA
After Lease up by approximately 4% from 2 billion euros in 2025.
Group Capex below 14% of revenues in 2026; for TIM Domestic Capex equal to approximately 12% of
revenues.
Equity Free Cash Flow After Lease equal to approximately 1.8 billion euros in 2026, including the
compensation relating to the 1998 license fee.
Organic reduction of Group debt, with a Net Debt After Lease/EBITDA After Lease ratio below 1.7x in 20266,
which represents a ‘best in class’ level among European peers.
During the financial year, TIM intends to pay shareholders, through buybacks, a remuneration equal to
approximately 50% of the expected proceeds from the sale of Sparkle, subject to the closing which is
expected in the second quarter of the year, and to the completion of the voluntary reduction of share capital
and of the conversion of savings shares, already approved by the Shareholders’ Meetings on January 28. In
particular, the Board of Directors decided to propose to the Shareholders’ Meeting of April 15 a buyback
program up to a maximum of 400 million euros and for a maximum of 700,000,000 ordinary shares7,
corresponding to approximately 3.3% of the share capital. The buyback shall be partially used to service the
remuneration and share-based incentive plans.
It is to be noted as well that saving shareholders also guaranteed, for the current financial year, the
remuneration deriving from the cash component linked to the voluntary or mandatory conversion of savings
shares into ordinary shares, as approved by the Shareholders’ Meetings on January 28.
Furthermore, the BoD decided to propose to Shareholders’ Meetings of April 15 a reverse stock split of TIM
ordinary shares in the ratio of 1 new ordinary share for every 10 existing ordinary shares, which is subject to
the completion of the voluntary reduction of share capital and of the conversion of savings shares, as already
stated. The reverse stock split will reduce stock volatility, also by attracting new investor classes, and,
together with the conversion of savings shares, will result in a leaner and more efficient capital structure.
For 2026 financial year, the Group confirms the remuneration guidance to its shareholders with an amount
equal to approximately 70% of the generated Equity Free Cash Flow After Lease, net of the impact of the
compensation of the 1998 license fee and the dividends pertaining to TIM Brasil’s minority interests, to be
distributed following the Annual General Meeting scheduled for spring 2027.
TIM, during the second half of the year, will organize a Capital Markets Day to illustrate to the market the
new industrial plan which it intends to adopt following the conversion of savings shares and in light of the
main industrial dossiers currently underway, including the definition of the scope of synergies with Poste
Italiane.
TIM Press
Office
TIM Investor Relations
https://www.gruppotim.it/investor_relations
4 Excluding non-recurring items, changes in the scope of consolidation, and exchange rate fluctuations. Group income statement data at the average
exchange rate of R$6.31/€.
5 TIM Brasil cash flow based on the annual exchange rate published by Bloomberg Survey and based on projections of leading banks (average
exchange rate 2026 of R$6.54/€).
6 The exact amount will depend on the percentage of savings shareholders who opt for the optional conversion of savings shares into ordinary shares.
7 To be understood as reduced, following the share reverse stock split, to a maximum of 70,000,000 ordinary shares in total.
https://www.gruppotim.it/media
The TIM Group’s preliminary results as of December 31, 2025 will be presented to the financial community in a webcast on February
25, 2026. 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
The economic and financial results of the TIM Group and TIM S.p.A. for the 2025 financial year and the previous year presented for
comparison have been prepared in accordance with the IFRS accounting standards issued by the International Accounting Standards
Board and endorsed by the European Union (referred to as “IFRS”). The accounting criteria and consolidation principles adopted are
consistent with those used in the consolidated financial statements of the TIM Group and the separate financial statements of TIM
S.p.A. as of December 31, 2024, except for the amendments to accounting principles issued by the IASB and effective from January
1, 2025.
The operating performance of the TIM Group is affected by non-recurring income and expenses related to events and transactions
that, by their nature, do not occur continuously in normal operating activities and are highlighted because they are significant in
amount. These non-recurring items include, among others, any goodwill impairment changes, charges associated with corporate
reorganization/restructuring, provisions for regulatory disputes and potential liabilities related to them, liabilities with customers
and/or suppliers, provisions for onerous contracts and prior-year adjustments.
As of December 31, 2025 (as already indicated starting from the first quarter of 2025), the Sparkle group is classified, in accordance
with IFRS 5, as an asset available for sale. For comparative purposes only, the consolidated income statement data and consolidated
statement of cash flows data already published as of December 31, 2024 have been consistently reclassified. The shareholding in
Sparkle S.p.A. is held by the Parent Company TIM S.p.A.; the Sparkle group is active in the development of fibre-optic networks for
international wholesale customers.
Furthermore, following the sale, on July 1, 2024, of the entire equity investment held by TIM S.p.A. in FiberCop S.p.A., subsequent to
the transfer by TIM S.p.A. to FiberCop S.p.A. of a business unit consisting of activities related to the primary network, the so-called
“Wholesale” activity, and the entire equity investment in the subsidiary Telenergia S.r.l. (the “NetCo Transaction”), and in order to
provide a better understanding of business performance, organic economic and financial information has been included relating to
the performance for the first twelve months of 2024, restated on the basis of management 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, 2024). 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 (Domestic Business Unit, TIM Group), simulating for the first six months of 2024, the impact of the relationship
between TIM and NetCo/FiberCop, regulated by the Master Service Agreement (MSA) and recording, as from July 1, 2024 (date of
disposal), the actual accounting impact of the MSA and the Transitional Services Agreement (TSA).
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 and 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; Capital expenditures (net of TLC licenses); Operating free cash flow and Operating free cash flow (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.
LIKE-FOR-LIKE RESULTS IN 2025
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).
TIM Group preliminary like-for-like results (Sparkle Discontinued Operations)
(million euros) – organic data (*)
% Change
Revenues
13,734
13,368
TIM Domestic
9,543
9,369
6,023
6,078
(0.9)
of which TIM Consumer
3,520
3,291
TIM Brasil
of which TIM Enterprise
4,220
4,034
Service revenues
12,860
12,426
8,791
8,563
5,515
5,546
(0.6)
TIM Domestic
of which TIM Consumer
3,276
3,017
TIM Brasil
of which TIM Enterprise
4,098
3,898
EBITDA
4,353
4,092
TIM Domestic
2,217
2,107
TIM Brasil
2,143
1,991
EBITDA AL
3,689
3,463
TIM Domestic
2,029
1,931
TIM Brasil
1,667
1,538
CAPEX (net of telecommunications
licenses)
1,903
1,935
(1.7)
TIM Domestic
1,183
1,214
(2.6)
(0.2)
TIM Brasil
EBITDA AL-CAPEX (net of
telecommunications licenses)
1,786
1,528
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.
MAIN CHANGES IN THE SCOPE OF CONSOLIDATION OF THE
TIM GROUP
During fiscal year 2025, there were no significant changes in the scope of consolidation.
During fiscal year 2024, the main changes in the scope of consolidation were as follows:
the disposal, on July 1, 2024, of the entire interest held by TIM S.p.A. in FiberCop S.p.A. following the transfer by TIM S.p.A. to
FiberCop S.p.A. of a business unit consisting of the activities relating to the Primary Network, the so-called “Wholesale” business
and the entire interest in the subsidiary Telenergia S.r.l. (“NetCo Operation”). On that date, therefore, the deconsolidation of the
transferred business occurred and the effects of the Transaction on the income statement and financial position were recognized
and classified in accordance with IFRS 5, among Discontinued Operations;
the acquisition of control, through the subsidiary Telsy S.p.A. (Domestic Business Unit), of QTI S.r.l., a company operating in the
development, production and marketing of innovative products and services with high technological value.
PRELIMINARY RESULTS FOR THE TIM GROUP FOR THE 2025
FINANCIAL YEAR
The total revenues of the TIM Group (Sparkle Discontinued Operations) for the 2025 financial year amounted to 13,734 million
euros, +0.6% compared to the 2024 financial year (13,653 million euros).
The breakdown of total revenues for the year 2025 by operating segment in comparison with 2024 is as follows:
(million euros)
% weight
% weight
Changes
absolute
like-for-like
Domestic
9,543
9,318
Brazil
4,220
4,366
(146)
(3.3)
Other operations
Adjustments and eliminations
(0.2)
(0.2)
13,734
100.0
13,653
100.0
Consolidated Total
TIM Group like-for-like consolidated revenues are calculated as follows:
(million euros)
% Change
REVENUES
13,734
13,653
Foreign currency financial statements translation effect
(332)
ORGANIC REVENUES excluding non-recurring items
13,734
13,321
Impacts deriving from:
Master Service Agreement (MSA)
Other
Like-for-like ORGANIC REVENUES
13,734
13,368
The EBITDA of the TIM Group (Sparkle Discontinued Operations) for FY2025 amounts to 4,566 million euros (4,744 million
euros in FY2024, -3.8%).
EBITDA by operating segment for 2025, compared to 2024, was as follows:
(million euros)
Changes
% weight
% weight
absolute
like-for-like
Domestic
2,437
2,593
(156)
(6.0)
Brazil
2,136
2,155
(0.9)
(0.2)
(0.1)
(3.8)
Other operations
Adjustments and eliminations
Consolidated Total
4,566
100.0
4,744
100.0
(178)
TIM Group like-for-like consolidated EBITDA is calculated as follows:
(million euros)
% Change
EBITDA
4,566
4,744
(3.8)
Foreign currency financial statements translation effect
Non-recurring expenses (income)
(164)
(213)
4,353
4,677
Effect of translating non-recurring expenses (income) in currency
ORGANIC EBITDA excluding non-recurring items
(6.9)
Impacts deriving from:
New Master Service Agreement (MSA)
(902)
Reversal of previous MSA between TIM and FiberCop
Other
Like-for-like ORGANIC EBITDA
4,353
4,092
EBITDA for the year 2025 includes non-recurring net income for a total of 213 million euros (non-recurring net charges of 97 million
euros in the year 2024):
(million euros)
1998 License fee – compensation for damages
(973)
Other
Deferred contract costs of the fixed network – transition from 8 years to 4 years of the recognition
period in the income statement
Other costs and charges
Non-recurring expenses/ (Income) with an impact on EBITDA
Other income
Acquisition of goods and services and Change in inventories
Employee benefits expenses
Deferred contract costs of the fixed network – transition from 8 years to 4 years of the recognition
period in the income statement
Charges connected to corporate reorganization/restructuring and other costs
(213)
Other operating expenses
Sundry expenses and provisions
Impact on EBITDA
In particular, the preliminary figures for 2025 include the following non-recurring expenses/(income):
operating income of 973 million euros, relating to compensation for total damages in relation to the license fee for the exercise
of telecommunications activities, paid by the TIM Group with reference to the 1998 financial year, definitively confirmed by
Judgment no. 33241 of December 19, 2025 of the Supreme Court, which upheld the decision of the Court of Appeal of Rome of
April 2024. Further details are included in the annex;
other income of 16 million euros mainly resulting from the release of commercial risk provisions;
operating expenses of 628 million euros (589 million euros recorded in acquisition of goods and services and 39 million euros
recorded in personnel expenses) related to the change, within the Domestic Business Unit, in the duration from 8 to 4 years of
the recognition in the income statement of deferred contract costs of fixed network. Further details are included in the annex;
other costs for acquisition of goods and services amounting to 46 million euros, mainly relating to consulting and professional
services connected with corporate transactions and the development of non-recurring projects;
other employee benefits expenses of 84 million euros mainly related to individual redundancy plans and disputes with staff;
other operating expenses of 18 million euros mainly relating to provisions for related disputes, regulatory sanctions and potential
liabilities.
The TIM Group headcount at December 31, 2025 was 25,602, (26,298 including the Sparkle group, Discontinued Operations),
including 16,847 in Italy (26,887 at December 31, 2024, including 9,366 in Italy).
In 2025, industrial investments and investments in mobile telephony/spectrum licenses of the TIM Group (Sparkle
Discontinued Operations) amounted to 1,903 million euros (2,032 million euros in 2024).
CapEx is broken down as follows by operating segment:
(million euros)
% weight
Domestic
Change
% weight
1,183
1,252
Brazil
Other operations
Adjustments and eliminations
1,903
100.0
2,032
100.0
(129)
Consolidated Total
% of Revenues
(1.0)pp
In particular:
the Domestic Business Unit (Sparkle Discontinued Operations) presents industrial investments of 1,183 million euros, with a
significant share aimed at the development of Mobile, IT and cloud infrastructure;
the Brazil Business Unit recorded industrial investments in 2025 of 720 million euros (780 million euros in 2024). Excluding the
unfavorable exchange rate dynamics (-59 million euros), the Business Unit’s capital expenditures are substantially stable
compared to 2024.
The Group’s Operating Free Cash Flow (OFCF, calculated by applying IFRS 16) in 2025 was positive and amounted to 1.9 billion
euros (positive for 2.6 billion euros in 2024).
Equity Free Cash Flow (calculated by applying IFRS 16) for the year 2025 amounts to 1.1 billion euros (0.2 billion euros in the 2024
financial year).
Equity Free Cash Flow After Lease for the year 2025 amounts to 0.7 billion euros (negative for 0.3 billion euros in the 2024 financial
year).
Net financial debt carrying amount amounted to 9,875 million euros at December 31, 2025, a decrease of 362 million euros
compared to December 31, 2024 (10,237 million euros). This reduction is mainly due to the positive dynamics of operational and
financial management, net of the payment of dividends and the share buyback program by the Brazil Business Unit.
Adjusted net financial debt (including IFRS 16 net debt) amounts to 9,778 million euros at September 30, 2025, up 291 million
euros compared to December 31, 2024 (10,126 million euros). The reversal of the fair value measurement of derivatives and related
financial liabilities/financial assets recorded a positive change of 14 million euros; this valuation adjusts the booked Net Financial
Debt with no monetary effect.
Adjusted Net Financial Debt – After Lease (net of lease contracts) as of December 31, 2025 amounted to 6,854 million euros,
down by 412 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)
Net financial debt carrying amount
Reversal of fair value measurement of derivatives and related
financial liabilities/assets
12/31/2024
Change
(a-b)
9,875
10,237
(362)
(111)
Adjusted Net Financial Debt
9,778
10,126
(348)
Leasing
(2,913)
(2,860)
6,854
7,266
(412)
Leasing – Discontinued operations/Non-current assets held for
Adjusted Net Financial Debt – After Lease
In the fourth quarter of 2025, adjusted net financial debt decreased by 1,125 million euros compared to September 30, 2025.
(million euros)
9/30/2025
Change
(a-b)
9,875
10,652
(777)
(118)
Adjusted Net Financial Debt
9,778
10,534
(756)
Leasing
(2,913)
(2,966)
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
6,854
7,545
(691)
It should be noted that, since July 2025, cash and cash equivalents has been buoyed by the collection of 995.4 million euros, following
the assignment to a pool of leading banks of the entire receivable relating to the refund of the 1998 License Fee (amount including
statutory interest accrued up to the date of the sale). The assignment had no impact on Net financial debt.
As of December 31, 2025, the TIM Group’s available liquidity margin was equal to 7,153 million euros and calculated considering:
“Cash and cash equivalents” and “Current securities other than investments” for a total of 3,418 million euros (4,364 million
euros at December 31, 2024), also including 334 million euros (nominal) in repurchase agreements expiring by February 2026;
Revolving Credit Facility amounting to 3,000 million euros, totally available;
the new Term Credit Facility entered into on July 22, 2025 by TIM with a pool of leading national and international banks for an
amount of 750 million euros, partially guaranteed by SACE (pursuant to Law December 30, 2023, no. 213 and subsequent
amendments), drawn for 15 million euros as of December 31, 2025.
This margin allows coverage of the Group’s non-current financial liabilities (including the portion of medium/long-term liabilities
maturing within twelve months) falling due for at least the next 48 months.
PRELIMINARY RESULTS OF THE BUSINESS UNITS
Domestic
Domestic Business Unit (Sparkle Discontinued Operations) revenues amounted to 9,543 million euros, up 225 million euros
compared to 2024 (+2.4%).
Domestic like-for-like revenues are calculated as follows:
(million euros)
Changes
REVENUES
Foreign currency financial statements translation effect
Non-recurring income/(expenses)
ORGANIC REVENUES – excluding non-recurring items
9,543
9,318
9,543
9,318
Impacts deriving from:
Master Service Agreement (MSA)
Other
Like-for-like ORGANIC REVENUES
9,543
9,369
“Like-for-like” service revenues amounted to 8,791 million euros (+228 million euros compared to 2024, +2.7%), thanks to growth
in ICT revenues despite the impact of the competitive environment on the customer base.
Handset and Bundle & Handset “like-for-like” revenues, including the change in work in progress, amounted to 752 million euros
in 2025, down 54 million euros compared to the same period of the previous year, due to a contraction in both the TIM Enterprise
and TIM Consumer segments.
TIM Consumer. The reference perimeter is made up of the set of voice 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:
6,904
12/31/2024
7,169
Of which active ultra-broadband accesses (thousands)
5,556
5,478
Fixed Consumer ARPU (€/month) (1)
Mobile lines at period end (thousands)
15,173
15,984
of which Human calling (thousands)
13,048
13,280
Total Fixed accesses (thousands)
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 2024 have been proformated to the same perimeter
as for 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 calling lines.
(million euros) – organic data
% Change
(a-b)/b
TIM Consumer revenues – like-for-like
6,023
6,078
(0.9)
Service revenues
5,515
5,546
(0.6)
Handset and Bundle & Handset revenues
(4.5)
TIM Consumer revenues for the first nine months of 2025 amounted to 6,023 million euros. The reduction of 55 million euros
compared to the same period of the previous year is due to lower revenues from mobile services and lower product sales.
Service revenues, which totaled 5,515 million euros, decreased by 31 million euros compared to 2024.
Handset and Bundle & Handset revenues for TIM Consumer are equal to 508 million euros, down by 24 million euros compared to
fiscal year 2024: the change is mainly related to lower sales volumes of fixed-line products.
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
% Change
(a-b)/b
TIM Enterprise revenues – like-for-like
3,520
3,291
Service revenues
3,276
3,017
Handset and Bundle & Handset revenues
(10.9)
TIM Enterprise’s revenues amounted to 3,520 million euros, up by 229 million euros (+7.0%) compared to the 2024 financial year,
thanks to the service revenue component (+259 million euros, +8.6%), driven by IT cloud services.
EBITDA for the year 2025 of the domestic business unit (Sparkle Discontinued Operations) amounted to 2,437 million euros (156 million euros compared to 2024).
Domestic “like-for-like” EBITDA is calculated as follows:
(million euros)
EBITDA
Changes
absolute
(6.0)
2,437
2,593
(156)
Foreign currency financial statements translation effect
Non-recurring expenses (income)
(220)
(317)
ORGANIC EBITDA excluding non-recurring items
2,217
2,690
(473)
(17.6)
Impacts deriving from:
New Master Service Agreement (MSA)
(902)
Reversal of previous MSA between TIM and FiberCop
(341)
Other
Like-for-like ORGANIC EBITDA
2,217
2,107
Headcount as of December 31, 2025 was 16,887 (17,751 as of December 31, 2024).
Brazil (average real/euro exchange rate 6.29416)
Revenues for 2025 of the Brazil Business Unit (TIM Brasil group) amount to 26,625 million reais (25,448 million reais in 2024,
+4.6%).
Growth was driven by service revenues (25,856 million reais compared to 24,588 million reais in fiscal year 2024, +5.2%) with mobile
service revenues growing by 5.4% in fiscal year 2025 thanks to continued improvement in the post-paid segment. Fixed-line service
revenues showed a slight increase of 0.4% compared to the 2024 financial year. Ultrafibra’s results for the fourth quarter of 2025
show a return to growth, reflecting the company’s efforts throughout the year to improve its operations.
Revenues from product sales totaled 769 million reais (860 million reais in the 2024 financial year).
The mobile ARPU in the 2025 financial year was 32.8 reais (31.4 reais in the first quarter of 2024, +4.6%).
Total mobile lines as of December 31, 2025, amounted to approximately 62 million, substantially in line with the total mobile lines
as of December 31, 2024 (62.1 million). The positive performance of the post-paid segment was offset by the reduction of lines in the
pre-paid segment. As of December 31, 2025, post-paid customers represent 52.8% of the customer base (48.7% as of December 31,
2024).
Broadband ARPU for fiscal year 2025 was 94.8 reais (97.2 reais in fiscal year 2024).
EBITDA for 2025 amounts to 13,477 million reais (12,562 million reais in 2024, +7.3%) and the margin on revenues is 50.6% (49.4% in
2024).
Organic EBITDA, net of the non-recurring component, increased by 7.7% and was calculated as follows:
(million Brazilian reais)
EBITDA
Changes
absolute
13,477
12,562
Non-recurring expenses (income)
ORGANIC EBITDA excluding non-recurring items
13,524
12,562
The growth in EBITDA is mainly attributable to the positive performance of service revenues, partially offset by the increase in
operating expenses.
The incidence of EBITDA on revenues stood, in organic terms, at 50.8% (49.4% in 2024).
Headcount as of December 31, 2025 was 8,702 units (9,123 units as of December 31, 2024).
PRELIMINARY RESULTS OF TIM S.p.A.
2025 revenues came to 9,446 million euros (9,218 million euros in 2024), with an increase of 228 million euros, equal to +2.5%.
Like-for-like revenues are calculated as follows:
(million euros)
Changes
REVENUES
9,446
Foreign currency financial statements translation effect
9,218
Non-recurring income/(expenses)
ORGANIC REVENUES – excluding non-recurring items
9,446
9,218
Impacts deriving from:
Master Service Agreement (MSA)
Other
Like-for-like ORGANIC REVENUES
9,446
9,285
8,736
8,516
(7.7)
Broken down as follows:
Like-for-like service revenues
Like-for-like Handset and Bundle & Handset revenues
Consumer + SMB. The reference perimeter is made up of the set of voice 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) and SOHO (Small Office Home Office).
(million euros)
% Change
Consumer & SMB revenues – like-for-like
5,635
5,621
Service revenues
5,112
5,087
Handset and Bundle & Handset revenues
(2.1)
In particular, the service revenues of the segment amounted to 5,112 million euros and recorded an increase of 25 million euros
(+0.5%) compared to financial year 2024, despite the competitive environment on the customer base.
Handset and Bundle & Handset revenues for the segment amounted to 523 million euros, down by 11 million euros compared
to 2024 (-2.1%); the change is connected to the lower sales of products in the fixed segment.
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)
% Change
Enterprise revenues – like-for-like
3,478
3,265
Service revenues
3,281
3,031
(15.8)
Handset and Bundle & Handset revenues
Specifically, revenues from Enterprise services totaled 3,281 million euros, an increase of 250 million euros (+8.2%) over 2024, due
to growth in cloud and security services.
TIM S.p.A.’s EBITDA for FY2025 is 2,069 million euros (-261 million euros compared to FY2024, -11.2%).
Like-for-like EBITDA is calculated as follows:
(million euros)
Changes
EBITDA
Foreign currency financial statements translation effect
2,069
2,330
(11.2)
Non-recurring expenses (income)
(141)
ORGANIC EBITDA excluding non-recurring items
1,928
2,427
(20.6)
Impacts deriving from:
New Master Service Agreement (MSA)
(902)
Reversal of previous MSA between TIM and FiberCop
Other
Like-for-like ORGANIC EBITDA
1,928
1,849
EBITDA for the year 2025 of TIM S.p.A. includes non-recurring net income for a total of 141 million euros (non-recurring net charges
for 97 million euros in the year 2024), broken down as follows:
(million euros)
Non-recurring expenses/ (Income) with an impact on EBITDA
Other income
1998 License fee – compensation for damages
(973)
Other
Deferred contract costs of the fixed network – transition from 8 years to 4 years of the recognition
period in the income statement
Expenses related to agreements and the development of non-recurring projects and other
charges
Acquisition of goods and services and Change in inventories
Employee benefits expenses
Deferred contract costs of the fixed network – transition from 8 years to 4 years of the recognition
period in the income statement
Charges connected to corporate reorganization/restructuring and other costs
(141)
Other operating expenses
Other expenses and provisions
Impact on 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)
Like-for-like ORGANIC EBITDA
4,353
4,092
Changes
absolute
Lease payments
(664)
(629)
(5.6)
Like-for-like EBITDA After Lease (EBITDA-AL)
3,689
3,463
LIKE-FOR-LIKE EBITDA AFTER LEASE – DOMESTIC
(million euros)
Like-for-like ORGANIC EBITDA
2,217
Changes
absolute
2,107
Lease payments
(188)
(176)
(6.8)
Like-for-like EBITDA After Lease (EBITDA-AL)
2,029
1,931
EBITDA AFTER LEASE – BRAZIL
(million euros)
ORGANIC EBITDA excluding non-recurring items
2,143
1,991
Changes
absolute
Lease payments (*)
(476)
(453)
(5.1)
EBITDA After Lease (EBITDA-AL)
1,667
1,538
(*) Does not include penalties associated with the decommissioning plan following the acquisition of the Oi Group’s mobile assets amounting to approximately 37 million
reais; approximately 6 million euros in 2025 (approximately 287 million reais; approximately 45 million euros in the 2024 financial year).
ADJUSTED NET FINANCIAL DEBT AFTER LEASE – TIM GROUP
(million euros)
12/31/2024
Change
Adjusted Net Financial Debt
9,778
10,126
(348)
Leasing
(2,924)
(2,860)
Adjusted Net Financial Debt – After Lease
6,854
7,266
(412)
EBITDA AFTER LEASE TIM S.p.A. LIKE-FOR-LIKE
(million euros)
Changes
absolute
Like-for-like ORGANIC EBITDA
1,928
1,849
Lease payments
(170)
(164)
Like-for-like EBITDA After Lease (EBITDA-AL)
1,758
1,685
12/31/2024
Change
ADJUSTED NET FINANCIAL DEBT AFTER LEASE TIM S.p.A.
(million euros)
Adjusted Net Financial Debt
10,407
9,915
Leasing
(746)
(835)
Adjusted Net Financial Debt – After Lease
9,661
9,080
EVENTS AFTER DECEMBER 31, 2025
TIM S.A. (Brazil Business Unit): TIM S.A. strengthens its B2B strategy with the
acquisition of V8.Tech
On November 26, 2025, the Board of Directors of TIM S.A. (Brazil Business Unit) approved the signing of a share purchase contract
(“Contract”) for the acquisition of 100% of the share capital of V8 Consulting S.A. (“V8.Tech”), for a consideration of 140 million reais
(amount subject to the usual adjustments for this type of transaction, as provided for in the Contract) to be paid at closing. This
amount may be increased by further payments (earn-out) up to a limit of 140 million reais, subject to the fulfilment of certain
conditions, within a period of six years (“Transaction”).
Founded in 2014, V8.Tech is a technology company specializing in the integration of digital solutions and managed services, with a
strong presence in digital transformation, in cloud computing (multicloud, private and hybrid) and in artificial intelligence. The
company currently employs approximately 380 professionals and posted net revenues of approximately 235 million reais in the last
12 months (through September 2025), with a compound annual growth rate (CAGR) of 17% between 2021 and 2024. Additionally, it
serves more than 100 customers active in various sectors of the economy.
The transaction strengthens TIM S.A.’s B2B strategy, significantly expanding the Company’s ability to provide comprehensive digital
transformation solutions. The integration of cloud and digital services into TIM S.A.’s portfolio will enable the delivery of end-to-end
projects, supported by highly specialized teams recognized for their industry know-how.
The closing of the Transaction was subject to the approval of the Conselho Administrativo de Defesa Econômica (CADE) as well as
the fulfilment of other customary conditions for transactions of this type.
On January 30, 2026, TIM S.A. announced that it had completed, once all applicable conditions precedent had been satisfied, the
acquisition of the entire share capital of V8 Consulting S.A., according to the terms and conditions described above.
TIM S.A. (Brazil Business Unit): Acquisition of all shares of I-Systems
On February 11, 2026, TIM S.A. (Brazil Business Unit) announced that the Company’s Board of Directors has approved the execution
of a Share Purchase Agreement with IHS Fiber Brasil – Cessão de Infraestruturas Ltda., which sets forth the terms and conditions for
the acquisition, by the Company, of 51% of the total share capital of I-Systems Soluções de Infraestrutura S.A. (“I-Systems”) currently
held by IHS Brasil, for an amount of 950 million reais, to be paid on the date of the closing of the Transaction.
Should the Transaction be completed, the Company – which already owns 49% of I-Systems’ share capital – will hold all of its shares,
making I-Systems its wholly-owned subsidiary.
I-Systems operates in the neutral optical fiber network sector in the Brazilian market, offering independent infrastructures for the
wholesale segment. The company operates in the states of São Paulo, Minas Gerais, Rio de Janeiro, Goiás, Paraná, Bahia,
Pernambuco, and Amazonas, with a total of approximately 9 million home passed.
The closing of the Transaction is subject to the satisfaction of certain customary conditions precedent for this type of transaction,
including, among others, obtaining the necessary approvals from the Conselho Administrativo de Defesa Econômica (CADE) and the
Agência Nacional de Telecomunicações (ANATEL), as well as applicable corporate approvals.
The Executive responsible for preparing the corporate accounting documents, Piergiorgio Peluso, hereby declares, pursuant to