After a stock market session in which, in contrast to the Italian market, the stock gained 0,4%, Telecom Italia's preliminary 2025 financial statements were released this evening and examined by the Board of Directors, which will meet to approve the draft financial statements and the consolidated financial statements on March 11th. 2025 represented Tim's first full financial year in the new industrial and financial perimeter, characterized by a simplified structure, lower capital intensity, and a strong focus on sustainable cash generation. For the fourth consecutive year, the company led by Pietro Labriola has achieved all its announced objectives.
CEO Pietro Labriola: "Good performance both in Italy and Brazil."
"2025," the CEO commented, "confirms the completion of the transformation begun in 2022. TIM today presents a strengthened financial structure, increased profitability, and sustainable cash generation. This allows us to define a disciplined remuneration policy consistent with long-term objectives. Furthermore, the fourth quarter results confirm the growth path we have embarked on, with an increase in revenues and margins in line with expectations thanks to a good business performance both on the domestic and Brazilian markets".
Group revenues and EBITDA show significant growth
In the detail of the quarterly report, therefore, Total group revenues amount to 13,7 billion euros, growing by 2,7% year-on-year (+1,9% in the domestic market to 9,5 billion euros, +4,6% in Brazil to 4,2 billion euros), while group service revenues are expected to grow by 3,5% year-on-year in 2025 to 12,9 billion euros (+2,7% in the domestic market to 8,8 billion euros, +5,2% in Brazil to 4,1 billion euros). Group EBITDA also grew, increasing by 6,4%. year-on-year at 4,4 billion euros (+5,2% in the domestic market to 2,2 billion euros, +7,7% in Brazil to 2,1 billion euros), just as the group's EBITDA After Lease is clearly increasing, rising to 26,9% of revenues, at 3,7 billion euros, up 6,5% year-on-year (+5,1% in the domestic market to 2,0 billion euros, +8,5% in Brazil to 1,7 billion euros).
Retail business stable after repricing
Tim Consumer recorded total revenues slightly down (-0,9% year-on-year) to 6 billion euros, while revenues from services were substantially stable at 5,5 billion euros (-0,6% year-on-year). The performance of TIM Consumer is characterised by a stable retail business and a decline in MVNO business related to the gradual turnover of large wholesale customers between 2025 and 2026, which will lead to a normalization of volumes over the course of the year. Key KPIs are improving: ARPU is significantly up in fixed lines (+5,1% year-over-year) and slightly up in mobile lines (+0,4% year-over-year), thanks in part to the repricing activities implemented, which, since the beginning of 2025, have affected approximately 4,1 million fixed lines and approximately 4,2 million mobile lines. The impact on churn is lower than expected, remaining stable, with a net balance of lines linked to mobile number portability remaining neutral.
TimVision's success continues, with the Energy service with Poste receiving a warm welcome.
The implementation of the TimVision platform, which Telecom is firmly focused on, continues to be successful, at least according to published data, with a 4,6% increase in revenue. The electricity and gas service offered by Tim Energia in collaboration with Poste Italiane has also been well received by the market. Tim Enterprise recorded total revenues of 3,5 billion euros (+7,0% year-over-year) and service revenues of €3,3 billion (+8,6% year-over-year), continuing to outperform the reference market and with a growth trend that has reached its fourteenth consecutive quarter. Cloud remains the main business line and the fastest-growing, with service revenues increasing 24% year-over-year, thanks in part to the National Strategic Hub, whose contribution doubled year-over-year. IoT and Security are growing, while connectivity is slightly declining.
Tim Brasil's performance was excellent
Tim Brasil recorded total revenues of €4,2 billion (+4,6% year-over-year) and service revenues of €4,1 billion (+5,2% year-over-year). EBITDA after leases was €1,7 billion (+8,5% year-over-year). trend growth for 11 consecutive quarters thanks to the push of the mobile segment and cost efficiency.
Shareholders' reward through a 50% buyback of Sparkle
During the financial year, Tim also intends to recognize to the shareholders, through buyback, a remuneration equal to approximately 50% of the expected value from the sale of Sparkle, subject to the closing, expected in the second quarter of 2026, as well as the effectiveness of the voluntary reduction in share capital and the conversion of savings shares, already approved by the Shareholders' Meetings on January 28. Specifically, the Board of Directors has decided to propose to the Shareholders' Meeting on April 15 a share buyback program of up to €400 million and a maximum of 700.000.000 ordinary shares, corresponding to approximately 3,3% of the share capital. The buyback may be partially used to service the remuneration and stock-based incentive plans.
