Tim hits 2025 targets and launches 400 million buy-back

Tim is fulfilling its promises for the fourth year running. And this time the stock market is taking notice, as the share price has risen 140% in the past year, closing yesterday at 65 cents (+0.40% from the day before). The board, which met yesterday under the chairmanship of Alberta Figari, approved the preliminary results for the 2025 financial year, which recorded revenues up 2.7% to EUR 13.7 billion, of which EUR 9.5 billion (+1.9%) were generated in the domestic market and EUR 4.2 billion (+4.6%) in Brazil. Ebitda increased by 6.4% to EUR 4.4 billion, with an almost equal contribution from the domestic market (+5.2% to EUR 2.2 billion) and Brazil (+7.7% to EUR 2.1 billion). The after-lease Ebitda margin rose to 26.9%.

In terms of business areas, Tim consumer reported revenues of EUR 6 billion (down 0.9%), with service revenues of EUR 5.5 billion (-0.6%). Tim Enterprise revenues grew 7% to 3.5 billion, with service revenues at 3.3 billion (+8.6%), better than the reference market. In this area, the cloud is confirmed as the main line of business and growing with a 24% increase in revenues from services, "also thanks to the National Strategic Pole, whose contribution doubles year on year", underlines a note.

Capital expenditure amounted to EUR 1.9 billion or 13.9% of revenue. At the end of the year, adjusted net debt after lease fell below EUR 6.9 billion, benefiting in particular from an equity free cash-flow after lease of more than EUR 0.7 billion in the fourth quarter. The figure still includes the debt of Sparkle, whose transition to Mef-Retelit is expected to be completed by mid-year. The repayment, in the amount of one billion, of the concession fee paid in 1998, which the Supreme Court of Cassation also confirmed as not due last 19 December, will have a positive impact on the net financial position in the current year: the amount was the subject of a factoring transaction and the related debt will be reversed in this year's accounts.

On the other hand, the return of the licence fee will have a positive impact on the balance of the income statement, but the financial year 2025 is still expected to close in the red, albeit slightly, also taking into account the negative effect of EUR 0.6 billion related to the recognition of costs related to the fixed network.

In any case, Tim's board of directors already resolved yesterday to propose to the shareholders' meeting on 15 April a share buy-back programme of up to a maximum of EUR 400 million, amounting to a maximum of 3.3% of capital. Part of the buy-back may be used to service management's remuneration and share incentive plans. At the Annual General Meeting, the regrouping of ordinary shares in the ratio of one new share for every ten old ones will also be proposed.