Telecom Italia (TIT) Q2 2025 earnings summary

Executive summary

• H1 2025 revenues reached €6,597m, up 2.7% year-over-year on an organic basis, with EBITDA margin improving to 30.3% and net profit from continuing operations at €4m; Sparkle classified as discontinued operations.

• Group and domestic results are on track, supported by stable competitive dynamics in Italy and rational market behavior in Brazil.

• Management changes and enhanced credit rating profile noted, with smooth transition planned.

• Monetization of €1.0bn from the 1998 Concession Fee and R$5.0bn bonds issued in Brazil improved liquidity and funding terms.

• Net loss for the period was €38m, a significant improvement from a €503m loss in the prior year.

Financial highlights

• Group H1 2025 revenues were €6.6bn, up 2.7% year-over-year; service revenues grew 3.3%.

• EBITDA After Lease (AL) for H1 2025 was €1,697m, up from €1,573m in H1 2024; CAPEX at €874m (12.6% of revenues).

• Equity Free Cash Flow After Lease at €0.5bn, up 9.9% year-over-year; Net Debt After Lease at €7.5bn, leverage 2.06x.

• Domestic revenues at €4,547m (+1.6% YoY), EBITDA AL at €815m, CAPEX €0.8bn (12.6% of revenues).

• Brazil revenues at €2.1bn (+4.8% YoY), EBITDA AL at €0.8bn (+6.1% YoY), CAPEX €0.4bn (17.1% of revenues).

Outlook and guidance

• Full-year 2025 guidance confirmed, with expected acceleration in Q4 driven by price increases and business seasonality.

• 2025–2027 guidance: Group revenues to grow 2–3% CAGR, EBITDA AL 1–2% CAGR, CAPEX to remain ~13% of revenues.

• Equity Free Cash Flow After Lease expected to grow 5–6% CAGR through 2027; leverage targeted below 2.0x.