Financial results round-up: TIM revenues decline, Liberty sales rise
Capacity shares the key details from three financial reports making headlines today.
TIM reports decline in revenues
Telecom Italia (TIM) reported lower Q1 results than anticipated following a period of uncertainty as hedge fund KKR hovered over a potential takeover.
Revenues declined by 4.5% year-on-year to €3.6 billion as demand for connectivity weakened following a surge following the pandemic.
Domestic sales were down by 7.7% to €2.85 billion euros which, it says, was in line with its predictions.
The operator is still working to split its services business from its wholesale network after declining the takeover approach from KKR.
TIM Brasil, meanwhile, experienced an 8.4% rise in service revenues while EBITDA was also up 5.1% year-on-year.
The company expects revenues to continue rising throughout the year following the acquisition of Oi Group last month.
Lumen revenue down year-on-year
Lumen reported a net income of $599 million and net income of $475 million for Q1 2022 but its total revenues were down year-on-year.
Total revenue stood at $4.676 billion, representing a decline from last year’s figure of $5.029 billion.
“We maintained healthy margins and cash flow and expect to close our two previously announced large transactions later this year,” Jeff Storey, president and CEO of Lumen said.
“We are excited by significant recent enterprise wins and our quantum fibre build is accelerating, both of which provide us confidence as we execute on our plans to drive toward revenue growth.”
Reported net cash provided by operating activities stood at $1.375 billion while general adjusted EBITDA was $1.966 billion.
Liberty Latin America reports revenue growth
Liberty Latin America reported revenue growth of 5% to $1.2 billion after recording 121,000 postpaid mobile additions.
The company also reported a “robust performance” in Costa Rica, recording 100,000 mobile subscribers and 16,000 fixed revenue generating units (RGU).
It also recorded 24,000 RGUs in Panama, up 136% year-on-year and 28,000 mobile postpaid additions.
CEO Balan Nair said: Our sales initiatives and focus on delivering innovative offerings drove our best ever quarter of mobile postpaid additions with over 120,000 new subscribers.
“The residential fixed business was led by strong performances in Costa Rica, Puerto Rico and Panama.
“We continued to see a challenging environment in Chile where we reported net RGU losses over the quarter, however the launch of aggressive new offers in March drove record gross additions in the month.”
Nair says the firm looks to build on the “steady” start to the year and remains confident in its medium-term outlook.