Growth in Brazil, flat in Italy, say TIM’s latest results

Growth in Brazil, flat in Italy, say TIM’s latest results


TIM had “better-than-expected results” for 2022, the former Telecom Italia said last night.

The company, which includes Italian and Brazilian fixed and mobile operations as well as Sparkle, its international network, said it expected “further acceleration” across the group.

“Starting 2023, domestic business [is] back to growth after six years,” said the company, which expects to spend €4 billion in capital expenditure this year, of which €3.1 billion will be spent in Italy.

Analyst group Jefferies was sceptical. It said this morning: “There is still only limited evidence of the competitive restraint that [management] asserts is taking hold in Italy.”

But it accepted there was “strong execution” on the cost restraint plan at a domestic level.

Jefferies suggested that growth of 3% was mainly “from domestic ICT [services and equipment] and Brazil”.

The board of directors, which met under the chairmanship of Salvatore Rossi, unanimously approved the 2023-2025 industrial plan presented by the group CEO Pietro Labriola (pictured), said TIM.

“Despite a radically different macroeconomic context compared to last year, the new plan is consistent with the previous one and with the project presented at the capital market day” in July 2022.

“In particular, thanks to the better-than-expected results recorded in 2022, the plan envisages further acceleration at group level.”

It said revenues would be “broadly stable” – that is, flat – in Italy and “high single digit growth in Brazil”.

TIM said it aims to cover 90% of the Italian population with 5G by 2025, and 48% of Italian homes with fibre-to-the-home (FTTH) by the same date. “TIM’s strategic priorities are to push strongly for the migration of lines to FTTH technology, associated with an ambitious plan to cover the fixed and mobile networks.