TIM's Business Plan - The Journey
Key points

The current macroeconomic scenario is characterised by rising raw material and energy costs, a slowdown in economic growth with a very high rate of inflation, and rising interest rates. The European telecommunications sector also faces a new phase of technological innovation with investments in 5G, fibre optics, and innovative infrastructure (data centres, cloud technologies, etc.). In Italy, there has been strong price pressure, driven also by particularly stringent regulations. 

In this context, the growing interest on TIM's high debt burden, accrued as a result of historical corporate events, has weighed increasingly heavily on the company’s profitability.

The 2024-2026 Business Plan rests on two pillars. The first is debt reduction, which, through the sale of the fixed access network, will decrease by €14.2 billion, increased by potential earn-outs of approximately €2.9 billion, the sale of Sparkle, and the recovery of the 1998 concession fee. The second pillar is the recovery of competitiveness of services, partly thanks to the easing of regulatory restrictions. Over the past two years, the conditions have been created for the effective implementation of the Plan, focusing specifically on maximising efficiencies, creating the ecosystem for the sale of the fixed network (after 12 years of attempts), ensuring the fulfilment of promises to the market (guidance), and returning profitability to services.

The strategy of the new TIM

The new TIM maintains the breadth of the offer portfolio (which includes all fixed network and mobile services) and benefits from a sustainable financial structure that will enable it to develop innovative services, generate value, and play an active role in the expected market consolidation. 

To learn more about the 2024-2026 Business Plan watch the presentation and consult the relative documents.