TIM updates strategic initiative, Q3 revenue dips 5% yoy

TIM Group reported Q3 revenue of 11.7 billion euros, a drop of 5% YoY, but a 5% improvement compared to the second quarter despite the persistence of the COVID-19 emergency. EBITDA amounted to 5.3 billion euros for the first nine months, -7.3% YoY. ( Q3 stable compared to the previous quarter in Italy), increasing in Brazil (+3.2% YoY).

TIM provided the following updates on its strategic initiatives:

Fibre network: Work is continuing on the launch of FiberCop’s operations, which is scheduled to take place in the first quarter of 2021 once the required authorisations have been obtained. At the same time, work is continuing on the creation of a Single Network (AccessCo), through constant dialogue with the Government and Cassa Depositi e Prestiti.
Sale of mobile towers: payment collected in October for the sale to Ardian Infrastructure of a minority stake in the holding company which holds TIM’s joint controlling share in INWIT. The total value of the transaction will amount to 1.6 billion euros in the fourth quarter of 2020.
Data Centers and partnership for Cloud services: the Board of Directors approved the creation of the Newco dedicated to managing the Group’s Data Centers, which will operate as of the first quarter of 2021, once the necessary authorisations have been obtained. 2020 proforma turnover is expected to be in the order of approximately 500 million euros, with an expected growth of over 20% per year. Thanks to the partnership with Google Cloud in the first nine months of the year major clients were won for the provision of joint services to business clients.
In Brazil, TIM S.A., together with Vivo and Claro, submitted a binding offer of 16.5 billion Reais (2.7 billion euros) for the mobile business of the Oi Group. The consortium was admitted as a “stalking horse” (entitled to raise its bid in the event of higher bids being made by competitors) at the auction scheduled to take place by mid-December 2020.
Capital expenditure was 2,006 million euros in the first nine months of 2020 (2,276 million euros in the first nine months of 2019).
The TIM Group headcount as of 30 September 2020 was 52,480, including 42,827 in Italy (55,198 as of 31 December 2019, including 45,266 in Italy) down by 2,718 compared to 31 December 2019, including -2,439 in Italy. Compared to 30 September 2019, the reduction was 3,568.