Tim file the 2019 budget with a Group net profit of 1,3 billion euros and go back to dividend after 6 years. The board of directors will propose to the meeting a coupon of one euro cent for ordinary shares need 2,75 cents for savings.
Going back to last year's accounts, net financial debt as at 31 December 2019 it amounted to €23,8 billion, down by €1,4 billion compared to the end of 2018 and by €473 million compared to 30 September 2019.
As for the turnover, stopped at 18 billion, down 4,9% year on year. In particular, revenues from group services, net of Sparkle, amounted to 15,6 billion (-2,6%). The net result of the parent company, on the other hand, amounted to one billion euro (negative by 1,4 billion in 2018).
THEoperating cash flow reached 3,1 billion euros (+1 billion on 2018), while theequity free cash flow it stood at 1,7 billion euro, up by over 1,1 billion on the year.
Also, Tim announced that he has conceded a period of exclusivity at the Kkr fund as a financial partner for the development of fiber network in Italy, "following the presentation of a non-binding offer for the purchase of approximately 40% of Tim's secondary fibre/copper network and in view of the desired integration with Open Fiber", reads the note.
The group also presented the new three-year plan: by 2022, Tim aims to achieve a cumulative cash flow between 4,5 and 5 billion (taking into account the deconsolidation of Inwit and the new IFRS 16 After Lease accounting standards). An objective to be "further increased through non-organic actions currently not included - writes the company - With the same perimeter and accounting principles, the objective would have been 5-5.5 billion".
The plan also includes a debt reduction of the After Lease group "below 20 billion euros by 2021" before considering the expected proceeds from the sale of 12.4% of Inwit (about 1 billion euros). In 2022 the debt should remain stable for the payment of the last tranche of the 5G license.
On the front of the i revenues, the group expects a reduction of between 1% and 3% at the organic level in 2020, which will be followed by a recovery in the two-year period 2021-2022. The same trend is also expected for the ebitda After Lease group workforce.
The plan also mentions a cost cutting equal to 10% in the three-year period, against the previous 8%.
Finally, a word on the emergency coronavirus: "We are going through a period of extraordinary and unprecedented health emergency worldwide - concludes Tim in the note - The impact on the trend of world and Italian GDP, and consequently on the Tim plan, it is not currently quantifiable and it will be a function of the duration, intensity and effectiveness of the containment".
