Telecom Italia S.P.A. ((TIIAY)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Telecom Italia S.P.A. (TIM) recently held its earnings call, which conveyed a generally positive sentiment. The company showcased strong financial performance and strategic advancements, especially in Brazil and through collaborations with Poste Italiane. Despite facing challenges such as declining MVNO revenue and stagnant mobile ARPU, TIM remains on track to meet its full-year targets.
Strong Financial Performance in Q3 2025
TIM reported a robust operational and financial performance in the third quarter of 2025. The company achieved a year-on-year revenue increase of 2% to 3%, with service revenue growing by 3%. Additionally, EBITDA after lease rose by 5% to 3%, and there was a marked improvement in equity free cash flow compared to the previous year.
Successful Bond Issuance
In September, TIM successfully issued a EUR 500 million bond, marking the lowest spread in 15 years for the company. The bond issuance was met with demand six times the offer, reflecting strong investor confidence in TIM’s financial health and strategic direction.
Robust Growth in Brazil
TIM Brazil continued to deliver impressive results, with consistent growth and enhanced cash generation. The company maintained its leadership in 5G coverage, now reaching over 1,000 cities, further solidifying its position in the Brazilian market.
Progress in Strategic Partnerships
TIM has strengthened its partnership with Poste Italiane by launching TIM Energia powered by Poste and signing a letter of intent to establish a joint venture focused on cloud and AI. These initiatives position TIM and Poste as leaders in Italy’s digital transformation landscape.
MVNO Revenue Decline
The earnings call highlighted a slight decline in service revenues in the consumer segment, down by 0.5% year-on-year. This decrease was primarily due to a lower contribution from MVNOs, a trend that was anticipated in the company’s strategic plan.
Stagnant Mobile ARPU
Despite efforts to reprice services, mobile ARPU remained stable. This was due to a balance between price increases and ARPU dilution caused by the difference between front book and back book pricing.
Forward-Looking Guidance
TIM confirmed its full-year guidance, projecting a 2% to 3% year-on-year increase in total revenues and a 3% growth in service revenue. The company expects EBITDA after lease to rise by 5% to 3%, with CapEx at EUR 1.2 billion, representing 12% of total revenues. Equity free cash flow after lease is anticipated to reach EUR 500 million for the full year, while net debt after lease is expected to remain stable around EUR 7.5 billion.
In conclusion, Telecom Italia S.P.A.’s earnings call painted a positive picture of the company’s current performance and future prospects. With strong financial results, successful strategic partnerships, and a clear path towards achieving its full-year targets, TIM is well-positioned to continue its growth trajectory despite facing some challenges.