Half Year 2025 Telecom Italia SpA Earnings Call Transcript
Key Points
- Telecom Italia SpA (TIIAY) delivered a solid operational and financial performance in Q2, both in Italy and Brazil, aligning with their budget and on track to meet full-year guidance.
- Total revenues grew by 2.7% year-on-year, with service revenues increasing by 3.3%, and EBITDA after lease rising by 5%.
- The company successfully refinanced and extended the size of the 2023 bond for TIM Brazil, lowering its cost of funding.
- Telecom Italia SpA (TIIAY) maintained a stable competitive environment in the Consumer segment in Italy, with improvements in mobile number portability dynamics and resilience in the Wireline business.
- The Enterprise segment showed robust growth, with cloud services revenue up 25%, reinforcing Telecom Italia SpA (TIIAY)'s position as a leading ICT player in Italy.
- Equity free cash flow was slightly negative in the first half at around EUR0.1 billion, reflecting the usual seasonal impact of working capital.
- The resignation of Chief Financial Officer Adrian Calaza may lead to transitional challenges, although a successor has been appointed.
- EBITDA after lease is slightly below expectations, although the company anticipates an acceleration in the second half.
- The company faces a potential risk related to the 98-concession fee, pending a final court ruling, which could impact financial stability if unfavorable.
- There is a deliberate portfolio reshaping in the Enterprise segment, leading to a 5% decline in revenues from other IT services.
Ladies and gentlemen, good morning, and welcome to TIM first-half 2025 results presentation. Paolo Lesbo, Head of Investor Relations, will introduce the event.
Ladies and gentlemen, good morning, and welcome to TIM first-half 2025 results presentation. I am pleased to be here with the CEO, Pietro Labriola; the CFO, Adrian Calaza, and the rest of the management team.
Today, we will walk you through the highlights of the period and review the main operating and financial results. As usual, we will close with the Q&A session. Before we begin, a quick reminder. As was the case in Q1, Sparkle is classified as a discontinued operation in line with the guidance provided last February.
It is therefore excluded from the perimeter of these results unless otherwise specified. This treatment will remain consistent in the coming quarters. Please also refer to the safe harbor statement in the appendix for further details on the scope of reporting.
And with that, I will now hand over
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