TIM (TIMS3) Q3 2024 earnings summary

Executive summary

• Achieved strong financial and operational results in 3Q24, with robust cash generation, margin expansion, and solid growth in mobile, B2B, and broadband segments.

• Service revenues grew 6.1% YoY, outpacing inflation, mainly driven by mobile services and B2B IoT.

• Postpaid customer base grew 9.2% YoY, with record low churn at 0.7% in 3Q24, reflecting improved loyalty.

• Maintained leadership in 5G and 4G coverage, best network quality, and continued innovation in digital ecosystem and AI.

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

Financial highlights

• Net revenue rose 6.0% YoY to R$6,419 million in 3Q24; service revenue up 6.1% YoY; normalized EBITDA increased 7.5% YoY to R$3,236 million, with margin at 50.4%.

• Net income grew 11.2% YoY to R$805 million in 3Q24, marking double-digit growth for the sixth consecutive quarter.

• Capex decreased 10.2% YoY to R$896 million in 3Q24, with Capex/Net Revenue at 14.0%.

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

• Mobile ARPU reached R$31.7 (+4.8% YoY), highest in the sector.

Outlook and guidance

• On track to achieve 2024 guidance, with Capex expected between R$4.4–4.6 billion and shareholder remuneration projected at R$3.5 billion for 2024.

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

• Strategic plan 2024-2026 targets continued growth and disciplined capital allocation.