Telecom Italia (TIT) investor relations material

Executive summary

• Achieved solid operational and financial performance in Q2 and H1 2026, with capital structure optimization, shareholder value creation, and a return to net profit in Q2.

• Guidance for 2026 and 2027 confirmed, reflecting confidence in business trajectory, strategic execution, and ongoing transformation.

• Completed first tranche of share buyback, capital structure actions (reverse stock split, share conversion), and received €1 billion concession fee reimbursement.

• Progressed on Sparkle disposal, pending final regulatory approvals.

• Board positively evaluated Poste Italiane's offer, but standalone plan remains robust and credible.

Financial highlights

• Group revenues grew 2.0% year-on-year to €6.83 billion, with acceleration from Q1 to Q2 and Brazil segment up 6% organically.

• Group EBITDA After Lease was €1.79 billion (+1.2% year-on-year); domestic EBITDA After Lease declined 2.5%, Brazil rose 5.5%.

• Net debt after lease at €7.3 billion, leverage ratio 1.94x.

• Equity Free Cash Flow After Lease for H1 was €650 million, a significant improvement from -€121 million in H1 2025.

• CapEx at €863 million (12.6% of revenues), with €482 million in Domestic and €381 million in Brazil.

Outlook and guidance

• Full-year 2026 and 2027 guidance confirmed: Group revenues expected to grow 2-3%, EBITDA After Lease 5-6%, CapEx intensity below 14% of revenues.

• Equity-free cash flow after lease projected at ~€1.1–1.8 billion for 2026–2027, leverage to remain below 1.7x.

• Guidance based on prudent, realistic assumptions, not factoring in external upsides.