Telecom Italia Reports 2.7% Q1 Core Profit Drop, TIM Brasil Leads Revenue Growth
Q1 2024 Financial Results Overview
Core Profit Performance
May 6 (Reuters) - Telecom Italia (TIM) posted a steeper than expected 2.7% drop in its core profit on Wednesday, partly due to issues related to the transition of some contracts with its virtual network operators.
Revenue Drivers and Segment Analysis
TIM Brasil and Domestic Enterprise Growth
TIM Brasil and TIM Domestic enterprise were the main driver of growth, recording revenues up respectively 6.4% and 3.2% from the previous year, while domestic consumer revenues were down 3%.
State-Owned Poste Italiane Offer
State-owned Poste Italiane made a 10.8 billion euro ($12.7 billion) cash-and-share offer to bring TIM back into state hands on late March.
Key Financial Metrics
EBITDA and Revenue Figures
• Q1 group EBITDA after lease was 794 million euros, below the company-provided consensus of 802 million euros
• Q1 group revenues totalled 3.32 billion euros, in line with a consensus provided by the company
Debt Position
• Adjusted net debt after lease at March-end stood at 7.29 billion euros
Strategic Investments and Future Plans
Infrastructure and Digital Sovereignty Investments
• Company to invest around 500 million euros in infrastructure and assets related to digital sovereignty between 2026 and 2028
Premium Mobile Service Launch
• Telecom Italia confirmed its plan to launch in 2026 a premium-priced on-demand mobile service for high‑performance connectivity including at big events
Reporting Credits
(Reporting by Anna Uras; Editing by Matt Scuffham)
