TIM (TIMS3) Q1 2025 earnings summary

Executive summary

• Achieved record normalized net income of R$810 million in 1Q25, up 56.0% year-over-year, marking the highest first-quarter result in company history.

• Mobile service revenue grew 6.2% year-over-year, driven by strong postpaid performance and effective monetization strategies.

• Strategic focus on São Paulo with 5G network modernization, 38% coverage increase, and 15% reduction in energy consumption.

• Expanded B2B and IoT offerings, especially in utilities, agribusiness, and logistics, with new partnerships in the energy sector.

• Recognized for sustainability leadership, ranking first in the Corporate Sustainability Index and listed on the CDP A-list.

Financial highlights

• Net revenue reached R$6,394 million, up 4.9% year-over-year; service revenue at R$6,240 million (+5.6%).

• Normalized EBITDA grew 6.7% year-over-year to R$3,084 million, with margin expanding to 48.2%.

• Net income grew over 50% year-over-year, marking the eighth consecutive quarter of double-digit expansion and a record Q1 result.

• Operating cash flow (OpCF) grew 18.7% year-over-year to R$1,001 million, representing 15.7% of net revenues.

• Cash position at R$5.3 billion (+58% YoY); net debt at R$11.05 billion (-14.6% YoY); leverage at 0.86x net debt/EBITDA.

Outlook and guidance

• Committed to delivering annual guidance of approximately 5% revenue growth, with capex focused on network modernization and digitalization.

• Expect postpaid to remain the main growth engine, with prepaid decline slowing but still negative.

• Continued focus on operational efficiency, digitalization, and AI adoption to drive future growth.

• Anticipate some deceleration in growth rates in subsequent quarters.

• Focus on prepaid recovery, expanding B2B IoT portfolio, and accelerating digital platform partnerships.