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.

• Restored financial and strategic flexibility, reduced leverage, and reinstated shareholder remuneration.

• Positioned as a leader in Italy and an efficient operator in Brazil, with domestic business stabilized and TIM Brasil delivering industry-leading margins.

• Strategic plan pillars remain unchanged, focusing on core business consolidation, ICT growth, data-driven transformation, capital allocation, and cost transformation.

Financial highlights

• Group revenues reached €14.5 billion, up 3.1% year-over-year; EBITDA after lease grew 10.1% to €3.7 billion.

• Domestic revenues rose 1.5% to €10.2 billion; TIM Brasil revenues increased 6.8% to €4.4 billion.

• Net debt after lease reduced to €7.3 billion, with leverage below 2x; liquidity margin covers maturities until 2029.

• Group capex was €2.1 billion (14.4% of revenues), with €1.3 billion invested domestically.

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

Outlook and guidance

• 2025–2027 plan targets 2–3% CAGR in revenues and 6–7% CAGR in EBITDA after lease.

• Domestic revenue to grow 1.2% in 2025 and 2.3% CAGR; domestic EBITDA after lease to grow 5.6% in 2025 and 5.6% CAGR.

• Capex/revenue to decline to 13% for group and 11% for domestic by 2027.

• Equity free cash flow after lease projected at €2.5 billion over 2025–2027; payout of 70% of cash generation in 2027–2028.

• Leverage targeted below 1.7x, potentially reaching 1.1x with concession fee proceeds.