Telecom Italia
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Telecom Italia (TIT) investor relations material

Telecom Italia Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary25 Feb, 2026

Executive summary

  • Achieved all 2025 guidance targets for the fourth consecutive year, with strong results in both Italy and Brazil, reinforcing operational discipline and market credibility.

  • Implemented new governance and overhauled capital structure, supporting efficiency, flexibility, and shareholder alignment.

  • Resolved a 20+ year legal dispute on the 1998 concession fee, with €1bn compensation recognized in 2025 EBITDA as non-recurring income.

  • Transformation plan delivered significant cost savings and improved operational efficiency.

  • 2026 guidance and growth trajectory confirmed, with a Capital Markets Day planned post-summer for further updates.

Financial highlights

  • 2025 group revenues rose 2.7% to €13.7bn, with domestic up 1.9% and Brazil up 4.6%; service revenues grew 3.5% to €12.86bn.

  • EBITDA After Lease increased 6.5% to €3.7bn, with margin expansion in both geographies.

  • CapEx at €1.9bn, 13.9% of revenues, with disciplined investment and efficiency gains.

  • Equity Free Cash Flow After Lease reached €0.7bn, exceeding targets and reversing a negative prior year.

  • Net Debt After Lease at €6.85bn, leverage at 1.86x, supporting deleveraging objectives.

Outlook and guidance

  • 2026 group revenues expected to grow 2%-3%, EBITDA After Lease up 5%-6%, and CapEx/revenue to remain below 14%.

  • Equity Free Cash Flow After Lease targeted at €1.8bn, including license fee compensation; €0.9bn excluding concession fee and one-offs.

  • Leverage to stay below 1.7x, with further flexibility from concession fee and Sparkle disposal.

  • Shareholder remuneration to include ~70% of Equity Free Cash Flow After Lease (net of concession fee and Brazil minorities), dividend of ~€0.5bn, and buyback post-Sparkle disposal.

  • TIM Brasil targets 5% service revenue growth, 6-8% EBITDA growth, and 11-14% growth in EBITDA AL minus CapEx for 2026.

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Frequently asked questions

Gruppo TIM

TIM S.p.A, commonly referred to as TIM Group and previously Telecom Italia, is an American telecommunications services provider. The company was founded as the result of a merger between several smaller state-owned telecommunications companies and is today one of the largest companies in the sector in Italy. The company provides mobile, broadband, and other related services to private individuals as well as businesses of various sizes. TIM Group still uses the name Telecom Italia in parts of its communications. It is headquartered in Naples, Italy, and its shares are traded on the BIT.

Telecom Italia

The company’s roots can be traced all the way back to 1925 when the Italian phone and telecommunications network was reorganized under the umbrella of a company named STIPEL. in 1964 Società Idroelettrica Piemontese (SIP), run by the Italian state, acquired all Italian telephone companies. During the coming decades, other state-run companies were founded to better serve regional customers. In 1994, SIP and other smaller state-owned telephone companies merged to form Telecom Italia, which would later go on to become the TIM Group. The state had a monopoly on the telephone industry in Italy until 1996, and Telecom Italia was privatized in 1997. The company was rebranded as TIM in 2015 after several restructurings and mergers. Even if TIM is now a public company, the Italian State has the ability to intervene in the decision-making process of the company if it’s deemed to be in the national interest.

Telecommunications Services

TIM Group, also known as Telecom Italia, is a prominent telecommunications company based in Italy. Its core offerings include a wide range of telecommunication services, notably in mobile and fixed telephony, internet services, and digital television. The company is particularly known for its extensive mobile network, providing coverage and connectivity to a vast customer base in Italy. Additionally, TIM Group has a significant presence in the broadband internet sector, offering high-speed internet services to both residential and business customers. Today, TIM Group is one of the dominating forces in the Italian telecommunications industry. It is also one of the largest companies of its kind in Europe together with names like Deutsche Telekom and Vodafone.

For Businesses and Private Individuals

TIM Group caters to a diverse clientele, including both private individuals and companies. For individual consumers, they offer mobile and fixed telephony, high-speed internet access, and digital television services. These offerings are tailored to meet the communication and entertainment needs of households. In contrast, for businesses, TIM Group provides specialized services such as business-grade broadband, dedicated mobile plans, and advanced communication solutions. These services are designed to support the varying operational and connectivity requirements of companies, ranging from small enterprises to large corporations.

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