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risultati 3Q gruppoTIM-Jacobs

Third Quarter 2022 Results

11/18/2022 - 10:00 AM

The TIM Group continues on the path towards stability and a strong relaunch of its social role towards the community. In Italy and Brazil, it serves the people and the production system by favouring digital transformation with a focus on territory, inclusion, and, well-being.

On 10 November, the Group's third quarter results were presented to the market, further confirming that it is on the right path. Business now appears to be more stable, more predictable, and healthier than it was at the beginning of the year. We achieved all of our set targets and, in some cases, we even exceeded our forecasts, thanks to the continued stabilisation and the relaunch of the domestic business, where cost containment actions helped us reach 90% of the target for all of 2022 and led to TIM Brasil’s accelerated development.

On the strategic initiatives front, we continued to strengthen our competitive position following the plan presented in July, which aims to overcome vertical integration by separating fixed network infrastructure assets (NetCo) from services (ServiceCo with TIM Consumer, TIM Enterprise, and TIM Brasil) and reducing debt by transferring and enhancing certain assets.

Breaking down the results, at Group level, total revenues grew by 1.1% year-on-year to €4.0 billion (-1.4% year-on-year in Q2 and -4.5% year-on-year in Q1), and service revenues increased for the second consecutive quarter (+3.0% year-on-year to €3.7 billion, +1.0% year-on-year in Q2, and -2.5% year-on-year in Q1) thanks to the positive contribution from the domestic business and Brazil.

In Italy, the Value vs. Volume premium positioning strategy continued, which has contributed to greater rationality in the fixed and mobile markets. It is in this framework that TIM Consumer launched a new offer portfolio, including the first 10 gbps connection on the Italian market, and initiated the selective repricing of the fixed and mobile customer base. In addition, a mechanism for indexing prices to inflation will be introduced in the new contracts by the end of the year.

Earnings for TIM Enterprise continue to outpace the market, particularly thanks to increases in the cloud (+56% year-on-year), IoT (+7% year-on-year), and security (+35% year-on-year). Further contributions to TIM Enterprise's growth will come from the activities of the National Strategic Hub, the recent awarding of the Scuole Connesse/Sanità Connessa (Connected Schools/Connected Health) tenders, and contracts with public administrations currently being activated.

In Brazil, the integration of Oi's assets and the organic growth strategy in fixed assets continued.

Group Organic EBITDA as at 30 September was €4.5 billion and showed an improving trend in the third quarter. Domestic EBITDA was €3,215 million (-16.9%), and Brazil EBITDA was €1,332 million (+16.2).

The Group's net debt after lease as at 30 September 2022 stood at €20.1 billion, up €2.5 billion from 31 December 2021, after the payment of the last instalment of the 5G spectrum in Italy for €1.7 billion.

At the beginning of the year, we also set challenging goals on the ESG front, strengthening our environmental, social and governance commitments, and during the third quarter, we continued our work to make energy consumption more efficient by decommissioning less efficient plants and procuring green energy.

The performance indicators are improving every quarter, proof that our business plan is effective. A plan that also envisages the spin-off of TIM Enterprise, which we launched when we presented the results for the quarter.

We will continue on this path, with the aim of returning to growth in 2023.