Growth accounts for TIM in 2024which represented a year of profound transformation for the Telecomuncunciation group, marked by the completion of the path started from 2022, with the improvement of the sale of Netco to Kkr and the consequent reduction of financial indebtedness. On the financial front, Tim closed 2024 reaching or exceeding, for the third consecutive year, the group guidance provided to the market.
For this the board has Approved the update of the Strategic Plan 2025-2027which aims to position the group as the best and largest digital platform and Telco in Italy and as the most efficient TLC operator in Brazil. Thanks to the generation of cash provided by the plan, the lever will be further reduced and the remuneration of shareholders will be resumed, while maintaining financial flexibility and a solid structure of the capital.
The results of 2024
Tim closed the 2024 with Total revenues group equal to 14.5 billion euros, growing by 3.1% year on year ( +1.5% in the domestic at 10.2 billion euros, +6.8% in Brazil at 4.4 billion euro); the Revenues from services Group are growing by 3.4% year on year at 13.5 billion euros ( +2.0% in the domestic at 9.3 billion euros, +6.6% in Brazil at 4.2 billion euros ).
The growth is growingEbitda group, which increases by 8.3% year on year to 4.3 billion euros ( +8.3% in the servant at 2.2 billion euros, +8.3% in Brazil at 2.2 billion euro); TheEbitda after lease Group, which rises 10.1% year on year at 3.7 billion euros ( +8.5% in the servant for 2 billion euros, +11.9% in Brazil for 1.7 billion euros).
TIM Consumer He recorded total growing revenues (+0.6% year on year) at 6.1 billion euros. Tim Enterprise He recorded total revenues of 3.3 billion euros (+4.1% year on year). Tim Brasil recorded revenues of 4.4 billion euros (+6.8% year on year), and an Ebitda after lease of 1.7 billion euros (+11.9% year on year).
THE’Rectified DEFTER LEA that of the group as of 31 December 2024, it fell under 7.3 billion euros, decreasing of 0.8 billion euros compared to the value immediately following the improvement of the sale of Netco, thanks to the organic cash generation of the second half of the semester and the sale of the Residual participation in Inwit, perfected in November. The group therefore achieved the goal of Deleverage indicated, with a relationship Between the rectified Detter Lease Net Financial District and the ORBITDA ORGANIC AFTER Lease3 of less than 2x.
The new plan
THE financial targets of the TIM group are:
- Group revenues growing about 3% annual medium in Piano (Cagr 2024-2027) of 13.7 billion euros pro-form in 2024;
- Ebitda after lease group growing between 6 and 7% annual average during the plan (Cagr 2024-2027) from 3.6 billion euros pro-form of 2024;
- Group capex equal to about 14% of the revenues in 2025 and under a reduction to about 13% in 2027;
- Equity Free Cash Flow After Lease5 of approximately 0.5 billion euros in 20256, around 0.9 billion euros in 2026 and approximately 1.1 billion euros in 2027, for a total of approximately 2.5 billion euros cumulated in the plan;
- Organic reduction in group indebtedness, with an after lease/Ebitda Lease debt debt ratio of less than 1.9x in 2025.
The group provides, for the two-year period 2026-2027, a debt still downwith a potential lever of 1.1x. Tim can grasp all the possibilities guaranteed by the evolution of his financial position, confirming the commitment to maintain, at the end of 2027, a lever less than 1.7x, which represents a ‘best in class’ level among the European peers.
TIM, for the 2026 and 2027 exercises, aims at remunerate their shareholders With an amount equal to about 70% of the L’Aquity Free Cash Flow After Lease generated, net of the dividends for the minorities of Tim Brasil, for a remuneration of about 0.5 billion euros in 2027 and about 0.6 billion Euro in 2028 The remuneration of shareholders will be subject to the availability of distributable reserves, to the approval of the Board of Directors and the Assembly.
The comment of the AD
“2024 was a year of great transformation for our group, marked by the completion of the sale of Netco and by the strengthening of our position in the reference markets – said theTo Pietro Labriola – For the third consecutive year we have hit all the set goalstransforming the company into a more solid and focused group. We completed the last piece of the plan presented in 2022, approving Sparkle’s sale to the MEF and Retelit. Also thanks to the collection relating to this offer, we aim to restore remuneration for shareholders since 2026 and we provide, for the next two -year period, a payout equal to 70% of the generated case. On the objectives front, the plan provides for an average annual growth of 3% of revenues and between 6 and 7% for the margins, supported by the improvement of domestic activities and the expansion in Brazil. We are ready to consolidate our leadership, investing six billion euros in technology and innovation to continue to create value for all our stakeholders “.
