Team archive the 2024 with USEFULL in growth and prepare the dividend return. The revenues Total increased by 3,1%, reaching 14,5 billion euros, thanks above all to the contribution of Team Brazil, which gave a significant boost to the overall results. Also theebitda of the group marks a +8,3%, reaching 4,3 billion euros, with a positive performance both in Italy and Brazil (2,2 billion in both markets). But the big news comes precisely on the front of shareholder remuneration: according to the forecasts of CEO Pietro Labriola, Tim aims to restore the dividend from 2026, with a payout equal to 70% of the cash generated in the following two years. In 2027 and 2028, a distribution of approximately 500 million euros is expected in 2027 and 600 million in 2028, with the aim of returning value to shareholders and consolidating the financial solidity of the group.
At Piazza Affari, the title is in the spotlight after the rally of the last few days, fueled by rumors about a possible strategic reorganization. The rumors about a possible exchange of shares between Poste Italiane and Cdp, in addition to the interest of Iliad. Meanwhile yesterday the Board of Directors unanimously approved binding offer for Sparkle of the Tesoro-Reteliet (Asterion) consortium.
Tim's 2024 accounts
I total revenues of the group reached 14,5 billion euros, up 3,1% compared to the previous year, driven by a good international performance, especially in Brazil. Meanwhile, in Italy the increase was more contained (+1,5%) for a total of 10,2 billion euros. Good revenues from services, up 3,4% to 13,5 billion, of which 9,3 billion from the domestic market (+2%).
THEGroup EBITDA grew by 8,3% reaching 4,3 billion, with the same increase for both Italy and Brazil (2,2 billion). Even better was theebitda after lease, which rose 10,1% to 3,7 billion, thanks to a robust +8,5% on the domestic market (2 billion).
On the front of the debt, Tim has reduced the net financial debt adjusted after lease less than 7,3 billion euros, thanks to FiberCop sale and the residual share in Inwit. Leverage has dropped to 2 and the target is to bring it to 1,1 in the next three years.
Business unit performance
In detail of the individual units, Tim Consumer closed the year with slightly increased revenues (+0,6%) to 6,1 billion euros, thanks to the repricing of offers and the containment of churn. The customer service platform benefited from the combined connectivity and entertainment offers and the growth of ICT services for SMEs (+7%).
Team Enterprise confirms itself as the growth engine in Italy, with revenues of 3,3 billion euros (+4,1%). The contracts signed also increased, reaching 4,1 billion (+500 million compared to 2023), thanks above all to the National Strategic Hub, which went from 300 to 520 million. The cost reduction strategy led to savings of 200 million euros.
Tim Brasil: Another Year of Growth
Team Brazil continues its unstoppable growth, marking the seventh consecutive quarter of positive performance. In 2024, it recorded revenues up 6,6% to 25 billion reais (around 4,3 billion euros), with an EBITDA up 8% to 12,6 billion reais. TheNet income jumped 17,1% to 3,16 billion reais (about 530 million euros).
I revenues from services rose 6,4% to 24,58 billion reais, with mobile leading the way (23,2 billion), while the fixed sector contributed 1,33 billion reais. business plan 2025-2027 It expects average annual revenue growth of 5% and EBITDA to increase between 6% and 8%. Operating cash generation should improve from a range of 11-14% to 14-16%.
Between 2025 and 2027, the Brazilian subsidiary plans to remunerate its shareholders with 13,5-14 billion reais (about 2,3 billion euros). “We have achieved our objectives and closed another year of growth, contributing to the development of the country,” said the CEO of Tim Brasil, Alberto Griselli, underlining the success of the strategy based on innovation and quality.
The 2025-2027 business plan
Tim has updated his financial goals (excluding Sparkle), forecasting an average annual growth of 3% for revenues, starting from 13,7 billion in 2024, with Tim Domestic increasing by 2-3% annually. For 2025, a growth of 2-3% overall and 1-2% for Tim Domestic is expected.
THEebitda after lease is expected to grow by 6-7% annually, with Tim Domestic increasing by 5-6%. For 2025, the expected growth is 7% for the group and 5-6% for Tim Domestic. Theequity free cash flow after lease is estimated at 500 million in 2025, 900 million in 2026 and 1,1 billion in 2027, for a total of approximately 2,5 billion cumulated in the three-year period.
The strategic plan 2025-2027 includes total investments of approximately 6 billion euros, focusing on advanced technologies such as 5G, data centers, IoT and artificial intelligence. The goal is to strengthen competitiveness and support organic growth, but also create the basis for future shareholder remuneration.
Labriola: “We aim to restore members’ remuneration from 2026”
“2024 was a year of great transformation for our group, marked by the completion of the sale of NetCo and the strengthening of our position in the reference markets – said Peter Labriola, CEO of Tim –. For the third consecutive year, we have achieved all the objectives set, transforming the company into a more solid and focused group. Today we have completed the last piece of the plan presented in 2022, approving the sale of Sparkle to the Mef and Retelit. Also thanks to the proceeds from this offer, we aim to restore the remuneration for shareholders from 2026 and we expect, for the following two years, a payout equal to 70% of the cash generated. In terms of objectives, the plan foresees an average annual growth of 3% in revenues and between 6 and 7% for margins, supported by the improvement of domestic activities and expansion in Brazil. We are ready to consolidate our leadership, investing six billion euros in technology and innovation to continue creating value for all our stakeholders”.
Labriola: “Poste or Iliad? No preferences”
For consolidation “we have always said that the only two possible objectives are Iliad o Post, we have been saying it since 2022. I have no specific preferences" what matters "is to continue to give results without being distracted by something that happens outside", he then said labriola answering analysts' questions in the 2024 financial statement presentation call. "Is it more convenient to invest in order to focus on consolidation by purchasing a company at a fair price or to buy back our shares given that our stock is currently very cheap?", asked Labriola, for whom, however, "clearly the Consolidation of the Italian market is essential to fix the current market“. Labriola reiterated that he had no discussions with Iliad or Poste.
Tim-Poste
Meanwhile, according to rumours, the Tim dossier could end up on the board of directors' table Post over the weekend even though no formal summons have yet arrived. At the same time, another board of directors could occupy the directors of Cassa Depositi e Prestiti. In fact, the hypothesis of a "share swap" could be at stake: the company led by Matthew Del Fante would acquire the 9,8% stake in Tim, currently held by CDP, and in exchange CDP would take 3,78% of Poste Italiane nexi.
Tim Vivendi
As for Vivendi, Labriola continued at the conference, “the current relations are positive and professional and I hope for a greater dialogue between the company's shareholders to allow the improvement of the numbers and the company's operations". The CEO then underlined that the French are an "extremely rational" shareholder. Looking at the progress of the discussions since my appointment, the attitudes have always been serious and professional, with the utmost respect for both their role as shareholder and their correct needs to protect their shareholders".
In the next few days, however, "we will resume contact. Before - he explained - we could not do disclosure of the plan but now they will have further information to make assessments and therefore I think it is right and normal that I consult with them".
Tim, possible capital reduction in the next meeting
“We have to stop being a penny stocks” and for this “we must reduce the share capital“, therefore, “when the board of directors deems it appropriate, we will put it on the agenda of a meeting for its approval, it could be as early as the next shareholders' meeting, but it is a decision that is up to the board of directors”, said the CEO of Tim.
Tim, here's what Giorgetti said
“With reference to Tim, I would like to remind you that the ministry welcomes those who ask to speak and present their projects, which is what the ministry will do and what it will always do in any game in the telecommunications sector and in any sector covered by the golden power, will be that of protect the national interest through the permitted golden power instruments". Thus the Minister of Economy Giancarlo Giorgetti at question time in the Senate.
“Il Sparkle Control – continued the minister – will be of the ministry, which will hold a share of 70% of the capital, will retain the right to appoint the majority of the Board of Directors and will have broad governance and strategic direction powers".
“On the question relating to Sparkle and the involvement of a Spanish background with a minority shareholding – added the Minister of Economy and Finance – I would like to highlight that the operation foresees a partnership that has a purely industrial nature and does not in any way prejudice the strategic direction prerogatives of the State on the asset. In particular, the involvement of Retelit allows to activate important industrial synergies for Sparkle, as Retelit operates in the same sector and is able to contribute to the development of investments in the network and to the efficiency of management”.
