TIM (TIMS3) Q2 2024 earnings summary

Executive summary

• Achieved robust financial and operational results in 2Q24, with revenue, EBITDA, and net income all growing year-over-year, driven by mobile and broadband segments.

• Service revenue grew 7.2% year-over-year in 2Q24, outpacing inflation and reflecting strong operational execution.

• EBITDA increased 8.2% year-over-year in 2Q24, with margin reaching a record 50%.

• Net income rose 22.5% year-over-year in 2Q24, reaching the highest level ever for a second quarter.

• 5G coverage expanded to 353 cities, maintaining leadership in market share gains.

Financial highlights

• Normalized net revenue rose 7.5% YoY to R$6,303 million in 2Q24; service revenue up 7.2% YoY.

• Normalized EBITDA increased 8.2% YoY to R$3,153 million, with margin expanding to 50.0%.

• Normalized net income reached R$781 million, up 22.5% YoY, the highest ever for a second quarter.

• Operating cash flow (EBITDA-AL minus Capex) grew 23.8% YoY to R$1,536 million.

• Capex was R$925 million, flat YoY, with a Capex/Net Revenue ratio of 14.7%.

Outlook and guidance

• Guidance for 2024 Capex remains unchanged at R$4.4–4.6 billion.

• Management confident in delivering on strategic plan, with continued focus on value creation, digitalization, and operational efficiency.

• Expect revenue growth to slow in H2 due to less favorable comps and prepaid-to-postpaid migration.