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Tim: revenues up, red line reduced. 2025 targets confirmed

First quarter turnover of EUR 3.3 billion, up 2.7%. Net loss of EUR 124 million

by Finance Review

7 May 2025

3' min read

Key points

The Business Insight

3' min read

In the first quarter, the Tim group reported revenues of €3.3 billion, up 2.7% year-on-year (+1.6% in the domestic to €2.2 billion, +4.9% in Brazil to €1 billion), and ebitda up 5.7% to €1 billion (+4.1% in the domestic to €0.5 billion, +6.8% in Brazil to €0.5 billion). After-lease Ebitda was also up, rising 5.4% to EUR 0.8 billion (+4% in domestic to EUR 0.4 billion, +6.5% in Brazil to EUR 0.4 billion). Service revenues were up 3.3% to EUR 3.1 billion (+2.1% in the domestic to EUR 2.1 billion, +5.6% in Brazil to EUR 1 billion).

Adjusted net debt After Lease as of 31 March 2025 was EUR 7.5 billion, up, as expected by analysts, by about EUR 200 million compared to about EUR 7.3 billion at the end of 2024, 'with the trend related to the seasonality of working capital and seeing a higher absorption due to the large investments made in the last quarter of 2024'.

In the first quarter, the group posted a net loss of EUR 124 million, compared to a net loss of EUR 400 million in the first quarter of 2024. A result, the note explained, including a net loss from discontinued operations and related expenses, essentially the Sparkle sale transaction, ed.), totalling EUR -21 million (EUR -17 million in Q1 2024).

Based on the results as at 31 March 2025, the group confirms all guidance for the current financial year.

The quarter, the note recalls, was also characterised by the entry of Poste Italiane into Tim's shareholding structure and the subsequent announcement of the increase of the stake, which is expected to be finalised shortly, up to 24.81% of the ordinary shares.

The Business Cross-Section

Looking at the various businesses, Tim Consumer reported total revenues up slightly (+0.3%) to EUR 1.5 billion. Revenues continued to stabilise, with churn down year-on-year and Arpu up in fixed and substantially stable in mobile. For the first time in several years, the quarter saw a substantially neutral net balance of lines related to mobile number portability. Repricing activities for 2025 have also begun, which have affected around 1.1 million fixed lines and around 0.7 million mobile consumer lines, and will begin to take effect from the second quarter.

Tim Enterprise recorded revenues of EUR 0.8 billion (+4.5%), continuing to outperform the reference market. For the first time, the Cloud (revenues from services +24% year-on-year) represented the main business line of Tim Enterprise, also thanks to the services offered to the National Strategic Pole, whose contribution in terms of revenues doubled year-on-year.

Tim Brasil, whose figures were released yesterday, recorded total revenues of EUR 1 billion (+4.9% year-on-year), and an Ebitda after Lease of EUR 0.4 billion (+6.5% year-on-year), continuing on the growth path undertaken in the last two years thanks to the boost of the mobile segment.

With a ratio of adjusted after-lease net debt to organic after-lease EBITDA of less than 2.1 times, the Tim group, the note points out, is confirmed as the listed telecommunications operator with the strongest 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 EUR 3 billion and extending its maturity to 2030.

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