Telecom Italia (TIT) Q2 2025 earnings summary

Executive summary

• Group revenues reached €6.6 billion in H1 2025, up 2.7% year-over-year, with growth in both domestic and Brazilian markets.

• EBITDA after lease increased by 5.0% year-over-year to €1.7 billion, and all financial guidance for 2025 was confirmed.

• Net loss attributable to owners improved to €38 million in H1 2025 from a €503 million loss in the prior year, with further improvement to €132 million compared to €646 million in H1 2024.

• Monetization of €1.0bn from the 1998 Concession Fee and completion of the FiberCop sale reshaped the group perimeter.

• Management changes included CFO and Chief Public Affairs Officer resignations, with smooth transitions planned.

Financial highlights

• Group service revenues grew 3.3% year-over-year to €6.2 billion.

• Group EBITDA After Lease (EBITDA-AL) grew 5.0% to €1.7 billion; group investments totaled €834 million, 12.6% of revenues.

• Equity free cash flow after lease turned positive at €77 million in H1 2025, with positive €0.1 billion in Q2.

• Adjusted net financial debt after lease stood at €7.5 billion, with a leverage ratio below 2.1x.

• Domestic revenues up 1.6% to €4.5 billion, Brazil revenues up 4.8% to €2.1 billion, and TIM Enterprise revenues up 4.7% to €1.6 billion.

Outlook and guidance

• Full-year 2025 guidance is confirmed, with expectations of accelerated growth in H2 2025 and positive cash generation.

• 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.

• Most EBITDA growth is expected in Q4 due to easier comparison and seasonality.