Tim closes the half year with improved prospects for 2022, with revenues from services substantially stable compared to the first half of last year and in line with the analysts' expectations. This allowed the group to revise its guidance on Ebitda upwards and to present itself at the meeting with analysts on Thursday after collecting the expected agreement with Dazn. The trading day closed positively for the group with an increase of 3,8% to 0,22 euro also due to the reassurances received from the CEO of Cdp Equity Pierpaolo Di Stefano on the strategic value of the single network: "It will be done - said Di Stefano in an interview with the Press – no obstacles from the shareholders. Joining forces in a single fiber network is essential for everyone”.
Tim, semester with stable revenues from services and upward guidance
Tim recorded revenues from services of 7,6 billion in the first half of 2022, against 7,54 last year (+0,2%). In the second quarter revenues rise to 3,9 billion against 3,8 in 2021). L'Reported EBITDA is down by 3,5% to 2,6 billion from 2,7 but down by 10,8% in organic terms, discounting 290 million in net non-recurring expenses, “mainly connected to personnel costs, reorganization and development processes of non-recurring projects” specifies the note released by Tim at the end of the Board meeting. Well Tim Enterprise: revenues from services in the business segment increased by approximately 9% year on year, thanks to the growth of the Cloud business (+62% year on year).
The transformation plan announced by the group continues, aiming, through the separation of activities, to increase the level of structural efficiency of TIM. In the first semester, the cost reduction operational compared to an inertial trend was equal to approximately 200 million euros, approximately 70% of the target set for 2022.
In light of these data and first-half operating trends, Tim revises guidance upwards for FY 2022 as a whole: Group organic Ebitda is reduced to a single-digit percentage reduction (“high single-digit decrease”) from a double-digit reduction (“low teens decrease”). Ebitda after lease, on the other hand, passes into double figures in the low range between 10 and 20% rather than in the medium-high range (“low teens decrease” from “mid to high teens decrease”).
Tim, semester closes with a loss but continues to cut costs
The half-year closed with a loss of -483 million, down on the -149 million of last year, but excluding the impact of non-recurring items – the Tim press release continues – the loss is reduced to 196 million against a positive result 195 million in the first half of 2021.
Adjusted net financial debt amounted to 24,6 billion euro as at 30 June 2022 against 22,1 billion euro as at 31 December 2021. Net financial debt after lease as at 30 June 2022 amounted to 19,3 billion euro, after discounting the acquisition in Brazil of the mobile activities of the Oi group for a total of 1 billion. Tim specifies that the purchase of new frequencies in Brazil and Italy also had an impact of 7 million in addition to the impact of renegotiations of IFRS469 lease contracts. Finally, on July 16, the financing of 2 billion supported by the Sace guarantee.
Cost containment in Italy TIM confirms its premium positioning strategy, “Value vs. Volume" also in the second quarter, "limiting promotional activities both in the fixed and mobile segments, despite the difficult competitive context and the absence of the voucher plan for Consumer customers which had a positive impact on performance in the same period of the Last year".
Tim, still growing in Brazil
TIM Brasil recorded revenues from services up 15,2% and EBITDA up 11,8% in the first half. In the second quarter there was in particular a strong acceleration in the growth of revenues from services (+21,9% YoY), EBITDA (+18,2% YoY) and operating cash generation (EBITDA-Capex, + 19,9% YoY) thanks to a solid organic performance and the contribution, starting from May, of Oi's mobile assets.
Tim Appointments: Siragusa leaves, Romano takes his place
“Stefano Siragusa, Deputy to the General Manager and Chief Network Operations & Wholesale Officer, will consensually leave the group to pursue new professional opportunities”. Thus the company's press release followed by the Board announces the exit, preceded by a tam tam of indiscretions in recent days. In her place, she was appointed Chief Network Operations & Wholesale Office Elizabeth Romano. The manager has been the CEO of Sparkle since August 2020 and will retain her role. Romano holds 354.367 TIM ordinary shares.
Last updated on Thursday, August 4, 2022 at 08:35am
