Q3 2025 Telecom Italia SpA Earnings Call Transcript
Key Points
- Telecom Italia SpA (TIIAY) delivered a solid operational and financial performance in Q3, both in Italy and Brazil, with results in line with the budget and full-year guidance.
- The company strengthened its partnership with Poste Italiane, signing an MVNO contract and launching TIM Energia powered by Poste, expanding its presence into new markets.
- In Brazil, Telecom Italia SpA (TIIAY) issued a EUR500 million bond with the lowest spread in 15 years, receiving strong investor demand.
- The enterprise segment posted robust growth driven by cloud services, with a 13th consecutive quarter of growth and a focus on high-value ICT services.
- Telecom Italia SpA (TIIAY) maintained a stable net debt after lease at around EUR7.5 billion, with a leverage ratio below 2.1 times, indicating financial stability.
- The consumer segment faced challenges with service revenues slightly negative at minus 0.5% year-on-year, mainly due to a lower contribution from MVNOs.
- Equity free cash flow after lease was positive but lower than last year due to one-off effects, indicating potential cash flow volatility.
- The company experienced a higher absorption of working capital in Q3, mainly due to a reduction in days payable outstanding.
- There is uncertainty regarding the concession fee case, with no formal updates, potentially impacting financial outcomes.
- The market environment remains competitive, with ongoing challenges in maintaining ARPU stability amidst price adjustments and market dynamics.
Ladies and gentlemen, good morning, and welcome to TIM nine months 2025 Results Presentation. Paolo Lesbo, Head of Investor Relations, will introduce the event.
Ladies and gentlemen, good morning, and welcome to TIM nine month 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 guide you through the highlights and review the main operating and financial results. As usual, we will close with the Q&A session. Before we begin, a brief reminder. As in previous quarters, Sparkle continues to be reported as discontinued operation, in line with the guidance provided last February. It is therefore excluded from the scope of these results, unless otherwise stated. Please also refer to the safe harbor statement in the appendix for additional details regarding the reporting perimeter.
With that, I now hand over to Pietro to start the presentation. Pietro, the floor is yours.
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