Telecom Italia (TIT) Q1 2025 earnings summary

Executive summary

• Poste Italiane agreed to acquire up to 24.81% of ordinary shares, becoming the largest shareholder and supporting long-term consolidation and governance alignment.

• Q1 2025 results showed revenue and EBITDA growth, with strong operational delivery and solid fundamentals in both domestic and Brazilian markets.

• Sparkle Group classified as discontinued operation, with sale agreement signed and disposal expected to close in Q4 2025.

• NetCo transaction completed, redefining group perimeter and impacting reporting.

• Guidance for 2025 confirmed, with cash flow evolution and deleveraging on track.

Financial highlights

• Group revenues rose 2.7% year-over-year to €3.3 billion; EBITDA After Lease up 5.4% to €0.8 billion; group EBITDA up 5.7% to €1.0 billion.

• Domestic revenues increased 1.6% to €2.2 billion; Brazil revenues up 4.9% to €1.0 billion, both with EBITDA After Lease growth.

• Group capital expenditures were €0.5 billion (13.9%–14% of revenues); domestic CapEX at €0.4 billion, Brazil at €0.2 billion.

• Adjusted net financial debt after lease at €7.5 billion, leverage at 2.05x, up from year-end 2024.

• Equity Free Cash Flow after lease improved to -€198 million from -€973 million year-over-year.

Outlook and guidance

• Full-year 2025 operational and financial guidance confirmed, in line with the business plan.

• Equity free cash flow expected to be broadly neutral in Q2 and clearly positive in H2.

• Sparkle disposal expected to close in Q4 2025, reducing leverage by 0.2x.

• 2024–2027 CAGR targets: revenues ~3%, EBITDA AL 2–3%, CAPEX 6–7%, leverage <1.9x.