Telecom Italia (TIT) Q1 2025 earnings summary

Executive summary

• Poste Italiane agreed to acquire up to 24.81% of ordinary shares, becoming the largest shareholder and supporting long-term consolidation and governance alignment.

• Q1 2025 results were in line with expectations, with revenues and margins growing in both domestic and Brazilian markets, and operational delivery remaining solid.

• Sparkle Group classified as discontinued operation/Asset Held for Sale, with sale agreement signed and disposal expected to close in Q4 2025.

• NetCo transaction completed, redefining group perimeter and impacting reporting.

• Guidance for 2025 confirmed, with cash flow evolution on track and deleveraging progress.

Financial highlights

• Group revenues rose 2.7% year-over-year to €3.3 billion; EBITDA After Lease up 5.4% to €0.8 billion; group EBITDA margin at 28.7%.

• Capital expenditures were €0.5 billion (13.9%–14% of revenues); domestic at €0.4 billion, Brazil at €0.2 billion.

• Adjusted net financial debt after lease at €7.5 billion, leverage at 2.05x, up from year-end 2024.

• Equity Free Cash Flow after lease improved to -€198 million from -€973 million year-over-year.

• Operating Free Cash Flow positive at €144 million, up from €30 million in Q1 2024.

Outlook and guidance

• Full-year 2025 operational and financial guidance confirmed, in line with the business plan.

• Group revenues expected to grow 2–3%, EBITDA After Lease 1–2%, CAPEX 12–13% of revenues, and leverage below 2.0x.

• Sparkle disposal expected to close in Q4 2025, reducing leverage by 0.2x.

• Equity Free Cash Flow expected to be broadly neutral in Q2 and clearly positive in the second half.