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TIM Group (TIIAY)
:TIIAY
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TIM Group
(OTC:TIIAY)
Rating:68Neutral
Price Target:
$5.50
▲(16.77% Upside)
TIM Group (TIIAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.58B
Dividend YieldN/A
Average Volume (3M)738.00
Price to Earnings (P/E)―
Beta (1Y)0.42
Revenue Growth-16.62%
EPS Growth87.40%
CountryUS
Employees26,282
SectorCommunication Services
Sector Strength80
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.00
Shares Outstanding1,532,946,700
10 Day Avg. Volume88
30 Day Avg. Volume738
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.14
Enterprise Value/Revenue1.64
Enterprise Value/Gross Profit3.85
Enterprise Value/Ebitda5.31
Forecast
1Y Price Target
$5.00Price Target Upside6.16% Upside
Rating ConsensusHold
Number of Analyst Covering0
TIM Group Business Overview & Revenue Model
Company DescriptionTIM Group (TIIAY), also known as Telecom Italia, is a leading telecommunications company based in Italy. The company operates primarily in the telecommunications sector, offering a wide range of services, including fixed-line and mobile telephony, internet services, and digital solutions. TIM Group serves both consumer and business markets, providing communications infrastructure and services to millions of customers across Italy and Brazil. The company is known for its investment in cutting-edge technologies and infrastructure, aiming to enhance connectivity and digital transformation.
How the Company Makes MoneyTIM Group makes money through a diversified revenue model primarily centered around telecommunications services. The company's key revenue streams include subscription fees from mobile and fixed-line services, broadband internet services, and digital solutions for both individual consumers and enterprises. In addition to direct customer subscriptions, TIM Group earns revenue from interconnection fees charged to other operators for accessing its network. The company also capitalizes on its investments in digital transformation and ICT services, offering advanced solutions to businesses. TIM Group's earnings are further supported by strategic partnerships and collaborations, particularly in expanding its fiber-optic network and enhancing 5G capabilities, which drive consumer adoption and increase usage of their services.
TIM Group Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: -1.67%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
Overall, the earnings call indicates a stable and positive outlook for TIM, with significant achievements in revenue growth, strong enterprise performance, and successful price adjustments. However, challenges in connectivity and the resignation of key executives present potential risks.Q2-2025 Updates
Positive Updates
Solid Operational and Financial Performance
TIM delivered a solid operational and financial performance in Q2 2025 in both Italy and Brazil, with results in line with budget and on track to meet full-year guidance.
Revenue and EBITDA Growth
Total revenues grew by 2.7% year-on-year, service revenues by 3.3%, and EBITDA after lease increased by 5%. CapEx stood at EUR 0.8 billion, around 13% of total revenues.
Enterprise Segment Growth
TIM Enterprise delivered a strong 6% compound annual growth rate, with cloud service revenue up 25%, reinforcing TIM's position as a leading ICT player in Italy.
Positive Cash Flow Dynamics
Equity free cash flow turned positive in Q2, slightly higher than planned, confirming structural improvement versus last year.
Stable Net Debt
Net debt after lease remains stable at EUR 7.5 billion with a leverage ratio below 2.1x.
Successful Price Adjustments
Price adjustments across both Wireline and mobile customer bases continued during Q2, with a lower-than-expected impact on churn.
Negative Updates
Equity Free Cash Flow Slightly Negative
Equity free cash flow was slightly negative in the first half at around EUR 0.1 billion due to the usual seasonal impact of working capital.
Challenges in Connectivity
Revenues from other IT declined by 5% due to a deliberate portfolio reshaping, and connectivity showed an expected slight decline.
Resignation of Key Executives
The CFO, Adrian Calaza, and Chief Public Affairs Security and International Business Officer, Eugenio Santagata, resigned, indicating potential instability in leadership.
Company Guidance
During the call, TIM provided detailed guidance for its financial and operational performance in the first half of 2025, emphasizing steady progress towards achieving full-year targets. The company reported a 2.7% year-on-year increase in total revenues and a 3.3% rise in service revenues, with EBITDA after lease increasing by 5%. Capital expenditures (CapEx) were EUR 0.8 billion, representing 13% of total revenues, and EBITDA after lease minus CapEx grew by 12% to EUR 0.9 billion. Despite a slightly negative equity free cash flow of EUR 0.1 billion in the first half due to seasonal working capital impacts, cash flow turned positive in Q2, exceeding expectations. Net debt after lease remained stable at EUR 7.5 billion, with a leverage ratio below 2.1x. TIM's domestic performance was solid, with total revenues up 1.6% and service revenues increasing by 2.2%. The company highlighted continued stability in the consumer segment and robust growth in its enterprise division, particularly in cloud services, which saw a 25% increase in service revenue. TIM also outlined its strategy to accelerate domestic EBITDA in the second half, driven by price increases, seasonal business effects, and operational efficiencies. The company confirmed its guidance for the full year, anticipating an acceleration in EBITDA growth in Q4.TIM Group Financial Statement Overview
Summary
TIM Group shows mixed financial performance. While revenue is declining and net losses persist, there's improvement in cash flow and net income. High leverage is concerning, but stable equity and effective cash management suggest potential recovery.Income Statement
The income statement shows declining revenue, with a TTM decrease of 4.5% from the last annual report. Gross profit margins have decreased to 42.54% in TTM from 46.63% in the previous year. Notably, the company continues to operate at a net loss, though net income has improved from -610 million to -334 million. The EBIT margin has remained stable at around 11.22% in the TTM. Overall, the company faces profitability challenges, but there are signs of improvement in net income.60
Neutral
Balance Sheet
The balance sheet shows a relatively stable financial position with a debt-to-equity ratio of 1.27 in TTM, slightly up from 1.24 in the last annual report. The equity ratio has improved to 31.54% from 31.74%. Although the company is leveraged, equity stability indicates resilience. However, the debt level remains a concern, requiring careful management to ensure long-term stability.67
Positive
Cash Flow
The cash flow statement indicates positive trends, with a significant increase in free cash flow to 927 million in TTM, up from 402 million in the last annual report. The operating cash flow to net income ratio is robust, demonstrating efficient cash conversion. This improvement suggests better cash management and operational efficiency despite ongoing net losses.72
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.44B | 16.30B | 15.79B | 15.32B | 15.80B |
| Gross Profit | 6.73B | 8.08B | 9.13B | 9.25B | 10.13B |
| EBITDA | 4.80B | 5.71B | 5.51B | 1.16B | 7.25B |
| Net Income | -610.00M | -1.44B | -2.92B | -8.65B | 7.22B |
Balance Sheet | |||||
| Total Assets | 37.66B | 62.16B | 62.03B | 69.19B | 73.23B |
| Cash, Cash Equivalents and Short-Term Investments | 4.46B | 4.97B | 5.00B | 9.15B | 5.92B |
| Total Debt | 14.72B | 31.55B | 31.19B | 32.10B | 29.95B |
| Total Liabilities | 24.30B | 44.65B | 43.30B | 47.15B | 44.39B |
| Stockholders Equity | 11.96B | 13.65B | 15.06B | 17.41B | 26.21B |
Cash Flow | |||||
| Free Cash Flow | 402.00M | -25.00M | -1.41B | 323.00M | 1.85B |
| Operating Cash Flow | 3.25B | 3.94B | 4.89B | 4.34B | 6.55B |
| Investing Cash Flow | 4.94B | -4.15B | -5.33B | -5.12B | -3.08B |
| Financing Cash Flow | -7.41B | -456.00M | -2.87B | 3.16B | -2.01B |
TIM Group Technical Analysis
Positive
4.71
Price Trends
4.64
Positive
4.18
Positive
3.43
Positive
Market Momentum
0.05
Negative
67.08
Neutral
99.50
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TIIAY, the sentiment is Positive. The current price of 4.71 is below the 20-day moving average (MA) of 4.74, above the 50-day MA of 4.64, and above the 200-day MA of 3.43, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 67.08 is Neutral, neither overbought nor oversold. The STOCH value of 99.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TIIAY.
TIM Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $9.49B | 15.01 | 13.78% | 5.87% | -7.99% | 2.16% | |
69 Neutral | $8.65B | 12.80 | 11.08% | 4.43% | -4.13% | 4.96% | |
68 Neutral | $10.58B | ― | 1.08% | ― | -16.62% | 87.40% | |
65 Neutral | $9.73B | 22.58 | 3.81% | 3.66% | -4.85% | -43.88% | |
64 Neutral | $4.12B | 20.66 | 3.99% | 2.07% | -12.77% | 40.80% | |
61 Neutral | $41.49B | -3.35 | -10.67% | 4.00% | 2.69% | -42.23% | |
48 Neutral | $9.16B | ― | -7.82% | ― | 4.15% | -311.82% |
* Communication Services Sector Average
Performance Comparison
TIIAY
TIM Group
4.97
2.60
109.70%
KT
KT
20.15
5.95
41.90%
SKM
Sk Telecom
22.40
0.04
0.18%
TEO
Telecom Argentina
9.86
3.29
50.08%
TIMB
TIM
20.31
6.05
42.43%
FYBR
Frontier Communications Parent
36.67
8.73
31.25%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.