Telecom Italia (TIT) Q4 2024 earnings summary

Executive summary

• 2024 marked a transformational year with the completion of NetCo and Sparkle disposals, the largest EU liability management operation, and a new strategic plan focused on digital leadership in Italy and efficiency in Brazil.

• Achieved full-year 2024 guidance for the third consecutive year, with strong operational and financial performance across all segments.

• Operational improvements led to a leaner cost structure, higher cash generation, and restored financial flexibility.

• Positioned as a leader in Italy and an efficient operator in Brazil, with renewed shareholder remuneration and future investments enabled.

Financial highlights

• Group revenues reached €14.5 billion, up 3.1% year-over-year; domestic revenues rose 1.5% to €10.2 billion, and TIM Brasil revenues increased 6.8% to €4.4 billion.

• Group EBITDA after lease grew 10.1% year-over-year to €3.7 billion; domestic EBITDA after lease rose 8.5% to €2.0 billion, and TIM Brasil EBITDA after lease increased 11.9% to €1.7 billion.

• CapEx at €2.1 billion (14% of revenue); domestic CapEx/revenue at 12.9%.

• Net debt after lease reduced from over €20 billion to €7.3 billion; leverage below 2x.

• Organic cash generation of €0.6 billion contributed to net debt reduction.

Outlook and guidance

• 2025–2027 plan targets average annual group revenue growth of 2–3% and EBITDA after lease growth of 6–7%.

• CapEx/revenue to decline to 13% by 2027; leverage targeted below 1.7x, potentially reaching 1.1x with concession fee.

• Equity free cash flow after lease projected at €2.5 billion over 2025–2027; group investments of €6 billion focused on 5G, data centers, IoT, and AI.

• Shareholder remuneration reinstated from 2026, with ordinary and extraordinary dividends planned, including 70% payout of cash generation in 2027–2028 and 50% of Sparkle proceeds.