Telecom Italia (TIT) Q3 2025 earnings summary

Executive summary

• Group revenues rose to €10 billion in the first nine months of 2025, up 2.3% year-over-year, with growth in both domestic and Brazilian markets.

• EBITDA after lease increased 5.3% year-over-year to €2.7 billion, with all full-year guidance confirmed.

• Strategic partnership with Poste Italiane advanced, including MVNO contract, launch of TIM Energia, and joint cloud and AI initiatives.

• Sparkle classified as a discontinued operation or held for sale, with sale conditions met.

• Management transition: Adrian Calaza resigned as CFO, succeeded by Piergiorgio Peluso.

Financial highlights

• Group service revenues reached €9.4 billion, up 3.0% year-over-year.

• Group EBITDA After Lease rose 5.3% to €2.7 billion; domestic EBITDA AL up 4.1%.

• Group investments totaled €1.2 billion, representing 12.1% of revenues.

• Equity Free Cash Flow After Lease at €1.5 billion for 9M, up 9.9%; Q3 positive at €0.1 billion.

• Adjusted net financial debt after lease stood at €7.5 billion as of September 30, 2025.

Outlook and guidance

• All previously communicated guidance for 2025 is confirmed, with expectations of accelerated growth in Q4.

• Group revenues to grow 2-3%, EBITDA AL 5-6%, CAPEX ~14% of revenues, leverage below 1.9x (excluding Sparkle).

• Equity Free Cash Flow After Lease expected to reach ~€0.5bn for FY 2025.

• Cash generation for the last quarter is expected to align with full-year guidance.