TIM (TIMS3) Q4 2024 earnings summary

Executive summary

• Achieved all 2024 financial and operational targets, with record net income, robust service revenue and EBITDA growth, and strong cash generation, supported by 5G leadership and low postpaid churn.

• Maintained #1 position in 5G coverage and network quality, expanding to 607 cities and recognized for consistent quality and customer experience.

• Expanded digital ecosystem and B2B IoT business, with R$708 million in contracted B2B revenue and new partnerships in digital services.

• Advanced ESG initiatives, including Brazil's first 5G-connected favela, 100% renewable energy use, and recognition in global sustainability indexes.

• Outperformed peers in postpaid net additions and ARPU, with churn at a low 0.7%.

Financial highlights

• Net revenue grew 6.6% YoY in 2024, driven by mobile and postpaid segments, reaching R$25,448 million.

• Normalized EBITDA rose 8.0% YoY in 2024, with margin at 49.6% and 50.5% in 4Q24.

• Net income increased 17.1% YoY in 2024, totaling R$3,160 million, marking the seventh consecutive quarter of double-digit growth.

• Operating free cash flow grew 23.2% YoY in 2024, with margin expanding to 20.5%.

• Shareholder remuneration reached R$3.5 billion, with a 10% yield and R$2 billion in proposed dividends.

Outlook and guidance

• 2024 guidance achieved: service revenue +6.4% YoY, EBITDA +8.0% YoY, Capex R$4.55B, and double-digit OpCF growth.

• 2025 guidance: service revenue growth ~5% YoY, EBITDA growth 6–8% YoY, Capex R$4.4–4.6B, and OpCF growth 14–16% YoY.

• Mid-term (2024–27): service revenue and EBITDA CAGR ~5% and 6–8%, respectively, with focus on sustainable growth, margin expansion, and new revenue streams.

• Guidance incorporates current inflation trends and macroeconomic volatility.

• Management reaffirms commitment to expanding 5G, B2B IoT, and innovative customer offers.