TIM (TIMS3) Q3 2024 earnings summary

Executive summary

• Achieved strong financial and operational results in Q3 2024, with robust cash generation, margin expansion, and continued innovation in digital ecosystem, B2B IoT, and customer experience through AI.

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

• Maintained leadership in network quality and coverage, especially in 5G and 4G.

• Official sponsor of Rock in Rio, boosting brand perception and engagement.

Financial highlights

• Net revenue rose 6.1% year-over-year in Q3 2024; normalized EBITDA increased 7.5% year-over-year, with margin reaching 50.4%.

• Net income grew double digits, reaching R$805 million in Q3 2024, with EPS at R$0.33.

• Operating cash flow (EBITDA-AL minus Capex) up 23.4% year-over-year, representing 25% of net revenue.

• Capex decreased 10.2% year-over-year to R$896 million, with Capex/Net Revenue at 14.0%.

• Nearly BRL 2.3 billion in cash generated before dividends after debt payments.

Outlook and guidance

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

• Service revenue and EBITDA expected to grow 7% and 9% year-over-year, respectively.

• Shareholder remuneration for 2024 confirmed at approximately BRL 3.5 billion.

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