Telecom Italia (TIT) H1 2024 earnings summary

Executive summary

• Q2 2024 revenues reached €4.02bn, up 1.6% year-over-year, with service revenues at €3.76bn, up 3.1% year-over-year.

• Board approved the Half-Year Financial Report at June 30, 2024, with NetCo classified as discontinued operations after its sale to KKR.

• ServCo's like-for-like preliminary H1 2024 results: revenues €7.1bn (+3.5% YoY), EBITDA €2.1bn (+9.4% YoY), EBITDA After Lease €1.8bn (+13% YoY).

• Net loss for H1 2024 was €503m; net loss attributable to owners was €646m, an improvement from €813m loss in H1 2023.

• Net financial debt after lease reduced to €8.1bn post-NetCo sale.

Financial highlights

• Group revenues (NetCo Discontinued Operations) reached €7,061m (+3.0% YoY); like-for-like organic revenues €7,112m (+3.5% YoY).

• EBITDA was €2,640m (+23.5% YoY); like-for-like organic EBITDA €2,139m (+9.4% YoY).

• EBIT rose to €993m from €485m YoY; EBIT margin improved to 14.1% from 7.1%.

• Capex was €1,001m, stable YoY; operating free cash flow was €1,305m (+24.8% YoY).

• Equity free cash flow was negative at €-681m (vs. €-167m YoY).

Outlook and guidance

• Full-year 2024 guidance confirmed: Group revenues to grow 3–4%, EBITDA After Lease up 8–9%, and net financial debt after lease to be ≤2x EBITDA After Lease or ~€7.5bn.

• Management continues to focus on organic growth, cost discipline, and deleveraging.

• Ongoing separation of fixed network (NetCo) and ServCo perimeter is expected to impact future reporting.

• Business outlook for 2024 remains in line with the "Free to Run" plan.