TIM Posts Strong Earnings After NetCo Sale, EBITDA Up 11.1%

TIM has delivered a significant financial boost in the first nine months following its divestment of NetCo, with group EBITDA after leases rising 11.1% year-on-year to €2.7 billion. The domestic market saw an 8.3% increase over the same period. In the third quarter alone, EBITDAaL climbed 7.6% to €1.1 billion, helped by 7.9% growth in Italy.

Revenue gains are spreading across TIM's geographies. Overall revenues rose 3.4% to €10.7 billion, bolstered by strong performance in Brazil. In Italy, revenues grew by 1.8% to €7.4 billion, with service revenues up 2.7% year-on-year.

Key to the domestic turnaround has been a strong showing from the Enterprise division, where TIM saw a 5.8% revenue increase to €2.3 billion. Cloud services were one of the standout contributors, growing by 22%, aided by TIM's role in Italy's Polo Strategico Nazionale (National Strategic Hub). Security and IoT service lines also posted healthy gains.

While Consumer revenue growth was more muted — flat at €4.5 billion for the nine months, with service revenues up just 0.2% — there were signs of improvement. TIM mentioned ARPU (average revenue per user) increases for fixed-consumer lines and gains via TIMVision, MVNOs and roaming. Domestic mobile ARPU slipped slightly by €0.20 to about €10.60 but fixed lines helped offset this pressure.

On the profitability front, the company remains in net loss overall, but that loss more than halved to €509 million in the first nine months. Share price reaction was modest but positive following the results, reflecting investor confidence in TIM's strategic pivot after the NetCo sale.

TIM's strategy aims for 2% domestic revenue CAGR through 2023-2026. The recent results show it is close to that target, driven by enterprise, cloud, and infrastructure opportunities — though consumer market pressures remain.