Telecom Italia (TIM) announced its preliminary 2024 financial results, reporting €14.5 billion in revenue (+3.1% YoY) and a 10.1% increase in EBITDA After Lease to €3.7 billion. The company successfully met its financial guidance for the third consecutive year, driven by growth in its domestic and Brazilian operations. Net debt after lease fell below €7.3 billion, achieving a leverage ratio below 2x following the sale of its NetCo business to KKR, significantly reducing financial liabilities.
TIM’s domestic revenues reached €10.2 billion (+1.5% YoY), with TIM Consumer contributing €6.1 billion (+0.6%) and TIM Enterprise at €3.3 billion (+4.1%). TIM Brasil continued its strong performance, reporting €4.4 billion in revenue (+6.8%) and €1.7 billion EBITDA After Lease (+11.9%). The company maintained tight cost controls, achieving 115% of its €200 million cost-cutting target for 2024.
The company reported continued improvements in network performance and infrastructure investments. TIM’s fiber network coverage expanded further, with over 5.5 million active ultra-broadband fixed-line connections, accounting for a growing percentage of its 7.2 million total fixed accesses. The company’s fixed-line ARPU increased to €30.2 per month, reflecting improved customer retention and higher-value bundled services. TIM’s mobile segment maintained 16 million lines, with 13.3 million human calling subscribers. The company’s mobile churn rate remained stable at 19.4%, while mobile ARPU stood at €10.6 per month.
TIM Brasil also saw strong customer growth and data usage expansion. The Brazilian unit ended 2024 with 62.1 million mobile lines, up by 900,000 compared to 2023, primarily due to gains in the postpaid segment, which now represents 48.7% of the total customer base. Mobile ARPU grew by 6.2% to R$31.4, while broadband ARPU reached R$97.2. The company continued its 5G network rollout, enhancing coverage and capacity, and further solidifying its market position as a leading mobile and fixed broadband provider in Brazil.
Looking ahead, TIM’s 2025-2027 strategic plan focuses on accelerating cash generation, reducing leverage, and resuming shareholder remuneration by 2026. The company plans €6 billion in strategic investments across 5G, AI, IoT, and data centers, projecting a 3% annual revenue growth and 6-7% EBITDA growth. TIM aims to reduce its debt ratio below 1.7x by 2027, ensuring financial flexibility while committing to shareholder returns.
• 2024 Financial Results: €14.5 billion in revenue (+3.1%), €3.7 billion EBITDA After Lease (+10.1%), net debt below €7.3 billion.
• Domestic Growth: TIM Consumer €6.1 billion (+0.6%), TIM Enterprise €3.3 billion (+4.1%).
• Brazil Expansion: €4.4 billion in revenue (+6.8%), €1.7 billion EBITDA After Lease (+11.9%).
• Fixed Network Metrics: 5.5 million active ultra-broadband connections, fixed ARPU at €30.2, 7.2 million total fixed accesses.
• Mobile Network Metrics: 16 million total lines, 13.3 million human calling subscribers, mobile ARPU at €10.6, churn rate at 19.4%.
• TIM Brasil Performance: 62.1 million mobile lines, postpaid share at 48.7%, mobile ARPU at R$31.4, broadband ARPU at R$97.2.
• Cost Reduction: Achieved 115% of 2024 cost-cutting targets (€200 million+ savings).
• Strategic Plan 2025-2027: €6 billion investments in 5G, AI, and cloud; target 3% revenue CAGR and 6-7% EBITDA growth.
• Debt Reduction: Aiming for leverage below 1.7x by 2027, with €2.5 billion equity free cash flow over the period.
• Shareholder Returns: Plans to resume dividends by 2026, targeting a 70% payout of cash flow in 2027-2028.
