The new" Team lifts the veil on the accounts: revenues e margini in growth in the first half of 2024. In the new ServiceCo configuration after the transfer of the network to the consortium led by KKR and Mef, the group led by Pietro Labriola recorded a turnover of 7,1 billion euros, up 3,5% compared to the same period of the previous year. This growth was driven by both domestic market, which saw an increase of 1,6% bringing revenues to 4,9 billion euros, both from Brazilian market, where revenues rose by 7,8% to reach 2,3 billion euros. Liabilities drop to 8,1 billion. Tim's top management confirmed all forecasts for the entire 2024 financial year.
I revenues from services recorded growth of 4%, reaching 6,7 billion euros. Also in this case, the domestic market contributed with a growth of 2,2% (4,5 billion euros), while the Brazilian market saw an increase of 7,6% (2,2 billion euros).
Also margini are growing. L'Ebitda of Tim increased by 9,4% compared to the previous year, reaching 2,1 billion euros. This increase was supported by growth of 8,5% in the domestic market (1 billion euros) and 9,9% in Brazil (1,1 billion euros).
THEEbitda After Lease showed an even more marked improvement, growing by 13% and reaching 1,8 billion euros. In Italy, Ebitda After Lease increased by 8,8% (1 billion euros), while in Brazil it grew by 17,8% (0,8 billion euros).
Performance of Consumer, Enterprise and Brazil
All three areas of Tim show positive signs. Tim Consumer recorded total revenues stable at 3 billion euros, with revenues from services increasing slightly (+0,5%) to 2,7 billion euros. Tim Vision's repricing actions and increase in ARPU contributed to these results. Furthermore, Tim continued its cost containment actions, saving over 0,1 billion euros in Ebitda Al – Capex in the half-year.
Team Enterprise saw total revenue growth of 4,9%, reaching €1,5 billion, with service revenues increasing by 6,4% to €1,4 billion. This success was driven by the growth of the ICT sector, which now represents 61% of the total, with significant increases in the cloud (+19%), security (+100%) and the Internet of Things (+49%).
Finally, the Brazil continues to be an important source of income for the group, with total revenues of 2,3 billion euros (+7,8%) and revenues from services of 2,2 billion euros (+7,6%). Ebitda in Brazil increased by 9,9%, reaching 1,1 billion euros, with a profit of over 100 million euros in the second quarter alone.
Debt reduction and rating improvement
Il net debt adjusted after lease of the group at 30 June 2024 was 21,5 billion euros, stable compared to the previous quarter. However, thanks to the sale of the network which took place on July XNUMXst, the debt fell to 8,1 billion of Euro. A positive net cash flow of around 0,6 billion euros is expected, which could further reduce debt to around 7,5 billion euros by the end of the year.
It is no coincidence that all the major ones rating agencies have increased credit rating of the group. On the eve of the accounts, Fitch improved Tim's rating to BB with a stable outlook, in line with the positive assessments of Moody's and S&P. The group previously had a BB- rating with a negative outlook.
The sale of NetCo not only significantly reduced the debt, but also changed the cost structure by Tim ServCo Domestic. Comparing the new domestic perimeter with the previous one, i cash costs (sum of opex and capex) are around 800 million lower in the first half of the year, with a different mix of costs: the Opex have increased by approximately 100 million, while i Capex they fell by around 900 million.
