Tim reduces loss in the first quarter but the stock goes down on the stock market

Positive results and in line with expectations Tim in the 1st quarter of the year, before the unbundling of the network which will take effect in the second half of the year. In fact, the former TLC monopolist closed the period with one reduced loss and growing results, especially in the services business (ServCo), which will be what will remain after the spin-off of the network (NetCo). However, the market today did not welcome these numbers, especially the indication of a rising debtand punishes the stock, which is among the worst on the stock market today.

Group numbers improving

THE total revenues of the Tim Group stood at 3.9 billion eurosup 1.2% year on year, recording a -1.3% in the domestic sector (2.8 billion) and a +8.1% in Brazil (1.1 billion euros).

Revenue from services amount to 3.7 billion euros (+3.2%)benefiting from the significant contribution of Brazil (+8.1% to 1.1 billion euros) and the domestic market for the second consecutive quarter (+1.3% to 2.6 billion euros).

EBITDAequal to 1.5 billion euros, is growing for the sixth consecutive quarter (+1.6%). The dynamics as of March 31st was influenced by the decline in the domestic market (-3.4%) and benefited from the good performance of Brazil (+11.8%). EBITDA After Lease grew for the fifth consecutive quarter, reaching 1.2 billion euros or (+3%).

Net Financial Debt adjusted After Lease of the Group as a going concern at 31 March 2024 amounted to 21.4 billion eurosup by 1 billion euros compared to 31 December 2023 and takes into account the “non-recurring” effects of the decree preventive seizure by the GIP at the Court of Milan issued last February 28 for an amount of 249 million euros and canceled at the end of April, which was returned to the Company on 24 April. Net of the aforementioned non-recurring effects, the Group's debt trend is in line with the guidance for 2024.

TIM, based on the results as of March 31, 2024, confirms all guidance provided to the market for the current year: revenue growth of 5-7% and EBITDA of 7-9% for the current financial year.

ServCo's growing numbers

Tim wanted to provide information on the progress of the business ServCo, providing data that simulates the effects of the spin-off of NetCo starting from 1 January 2022. The information also considers the effects deriving from the commercial relationships with NetCo, which will derive from the Master Service Agreement and the contextual reorganization of domestic activities in the Tim Consumer and Tim areas Enterprise.

THE revenues amount to 3.5 billion euros, up by 2.8% (+0.5% in the domestic sector to 2.4 billion euros, +8.1% in Brazil to 1.1 billion euros), while revenues from services are growing by 3.4% to 3.3 billion euros (+1.3% in the domestic sector to 2.2 billion euros, +8.1% in Brazil to 1.1 billion euros).

Strongly growing the EBITDAwhich increases by 11.6% to 1 billion euros, and EBITDA After Lease, which rose by 16.6% to 0.8 billion

Tim Consumer recorded total revenues essentially stable at 1.5 billion euros and revenues from services equal to 1.4 billion euros (+0.8%). Tim Enterprise recorded total revenues of 0.7 billion euros (+2.4%) and revenues from services of 0.7 billion euros (+4.3%). Tim Brazil recorded revenues of 1.1 billion euros (+8.1%) and an EBITDA of 0.5 billion euros (+11.8%).

The market does not reward

Despite improving results, the market does not reward the Tim titlewhich this morning loses 5.6% on the stock market at 0.2315 euros per share. This is the worst performance today in the FTSE MIB basket and brings the change from the beginning of the year at -21.4%.