Tim is "meeting on his goals" for 2022 and likely, with the new plan, it will improve the targets of the next two years. The CEO of the company said that, Peter Labriola speaking a meeting with over 1.000 group managers gathered face-to-face in the offices of Rome, Bologna, Milan and Naples which was also attended by the president of Tim, Salvatore Rossi.
Labriola: "Tim is healthy, we will respect the targets"
“If in addition to achieving the results of 2022 we also achieve those of 2023, then it will be the first time in 12 years that our company also respects those of the second year”, underlined Labriola, according to whom Tim is “an industrially sound company“, which is working “to definitively resolve a problem called debt”.
I “operating and financial” trends Tim's businesses are improving, the CEO explained again, emphasizing how it is necessary to “believe in our ability to make things happen”.
"There are enormous opportunities that we can exploit", he added, noting how the "churn", or the switch to other telephone operators, is "close to historic lows" and how revenue per customer is “starting to climb”. "The performance indicators are improving quarter after quarter - he added - We must not look at what is said outside, our only words are the results".
Labriola: "The new Netco could be called Telecom Italia"
“I wish I could call our netco (or the network company, ed) Telecom Italia”, said Pietro Labriola to the managers of the assembled group, inviting them to “change the company”, focusing on some key managerial behaviours, “such as asking ourselves how much what we do is worth, having the courage to choose. understand the problem in order to solve it”.
As for the delayering plan (separation), he concluded, is moving forward, but, he specified, throughout 2023 "I assure you that Tim will still be a single company and, together, we must all row in the same direction", concluded Labriola.
Rossi: "Proud to be a technological frontier"
Tim is an “alla” company frontier of technology and progress” and the people who are part of the group must feel “the responsibility for what they do and the pride of this responsibility”, said the president of the group, Salvatore Rossi.
“My hope is that we all learn to be more responsible and feel proud of it. In this way we will ensure that the company can dispose of the legacy of the past, which makes the new prevail over the old ”, she added. “Predicting the future has become prohibitive, less so for those who are in the dark advanced frontier of technological change, like Tim,” concluded Rossi.
Title Tim under pressure in Piazza Affari for the downgrade of Fitch
After last week's rally, the stock continues to remain under pressure in Piazza Affari and mid-afternoon yields 2,88% at 0,226 euros per share.
While investors are wondering about the government's moves, the announcement came last night Fitch downgrade on the company's debt. The rating company revised the rating downwards (from BB to BB-), confirming the negative outlook.
Fitch's experts have pointed their finger at the lack of decisive debt relief in 2022 by the company, as well as on the impact of the deterioration of the macroeconomic context. According to experts, it also doesn't help the uncertainty about the future of the network. Fitch also highlighted the lower liquidity available to the telecommunications company to meet the upcoming debt maturities of 3,4 billion in 2023 and 4,5 billion in 2024. In the report, the rating agency assumed that the domestic turnover of Tim in 2022 will drop by -5,7% and in 2023 by 3%, before stabilizing in 2024. The Ebitda margin will settle at 38,5% this year, at 38,6% next year and at 2024 at 38,9%. Greater cash cost efficiencies and rising prices for inflation will be offset by increased competition and inflationary cost pressures. The ratio between net debt and ebitda at the end of the year should be 4,3 times. Fitch also takes into account that in the period 2022-2024 the company will not distribute any dividends not even on savings.
