TIM (TIMS3) Q3 2024 earnings summary

Executive summary

• Achieved strong financial and operational results in Q3 2024, with robust cash flow generation, double-digit net income growth, and continued margin expansion.

• Mobile service revenues grew 6.3% year-over-year in Q3 2024, outpacing inflation, with postpaid churn at a record low of 0.7%.

• Postpaid customer base expanded significantly, driving ARPU up nearly 5% to R$31.7, the highest in the sector.

• Maintained leadership in 5G and 4G network quality and coverage, with continued innovation in digital ecosystem, B2B IoT, and customer experience through AI.

• Brand perception improved through high-profile sponsorships and new product launches.

Financial highlights

• Normalized net revenue rose 6.1% YoY in Q3 2024 to R$6,419 million; service revenue up 6.1% YoY.

• Normalized EBITDA increased 7.5% YoY to R$3,236 million, with margin expanding to 50.4%.

• Net income saw double-digit growth, reaching R$805 million (+11.2% YoY), with EPS at R$0.33.

• Capex decreased 10.2% YoY to R$896 million, representing 14.0% of revenue in Q3 2024.

• Operating free cash flow grew 19.8% YoY to R$1,743 million, with operational cash flow up 23.4% YoY.

Outlook and guidance

• On track to achieve 2024 guidance, with Capex expected between R$4.4–4.6 billion.

• Service revenue and EBITDA expected to grow 7% and 9% YoY, respectively.

• Shareholder remuneration for 2024 projected at R$3.5 billion, including R$800 million in Interest on Capital already announced.

• CapEx guidance for 2025–2026 remains unchanged, with no expected impact from current FX rates.

• Confident in growing above inflation in 2025, targeting 5–6% revenue growth.