TIM (TIMS3) Q1 2025 earnings summary

Executive summary

• Achieved record normalized net income of R$810 million in 1Q25, up 56% year-over-year, marking the highest first-quarter result in company history.

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

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

• Strategic focus on São Paulo with network modernization, 5G coverage expansion, and energy efficiency initiatives.

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

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 margin improved by 0.8 p.p. year-over-year to 48.2%.

• Operating free cash flow was R$294 million, a R$729 million year-over-year improvement.

• Cash position at R$5.3 billion, up 58% year-over-year.

• Announced R$2.05 billion in dividends and R$690 million in interest on capital in 1Q25.

Outlook and guidance

• Capex projection for the year remains unchanged, with investments focused on network modernization and digitalization.

• Committed to delivering annual guidance of approximately 5% revenue growth.

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

• Efficiency program to mitigate inflation impacts and support margin expansion.