Home » Tim, 2023 revenues rise, beating analysts’ expectations

Tim, 2023 revenues rise, beating analysts’ expectations

by admin
Tim, 2023 revenues rise, beating analysts’ expectations

Tim’s accounts improve. Yesterday the board of directors of the former monopolist, meeting under the presidency of Salvatore Rossi, examined the preliminary balance sheet for 2023 which sees revenues at 16.3 billion euros, up by 3.1%, therefore beating, even if slightly, expectations of analysts. The result was a 1.9% jump in the stock on the stock market. The CEO Pietro Labriola will present the new industrial plan on March 7th while on March 6th the board of directors will meet again to approve the financial statements.

Towards the meeting on April 23rd

But the real appointment will be the Tim meeting on April 23rd when Labriola’s board of directors will present its list of directors whose approval could be seriously hindered by the major shareholder Vivendi which has 23.7% against the spin-off of the fixed network in the process to be sold to the KKR fund under the direction of the Mef for 22 billion euros in order to reduce the debt which is equal to 25.7 billion, an increase of 300 million compared to 2022.

However, the fourth quarter results confirm the trend of improvement in the domestic business and the strong growth of the Brazilian subsidiary Tim Brasil. In particular, compared to the fourth quarter of 2022, total group revenues grew by 1.9% year-on-year to 4.3 billion euros, while revenues from services increased by 3% to 4 billion euros thanks to positive contribution from Brazil (+8.2%) and the domestic sector (+1.2%), which returns to growth after 22 quarters.

See also  Tim, Gubitosi leaves the company. Agreement for exit found

The growth trend of the group’s Ebitda (gross margin) continues, marking an increase of 6.8% year-on-year in the fourth quarter to 1.6 billion euros, with the Domestic Business Unit growing for the third consecutive quarter (+5.5%) and with Tim Brasil confirming its solid path (+9.5%).

Cost containment actions

During the quarter, a press release states, cost containment actions also continued aimed at increasing the level of structural efficiency of Tim Domestic (‘Transformation Plan’, cumulative cash cost reduction target of 1.5 billion euros by 2024 compared to the inertial trend). The cumulative reduction in the two-year period 2022-2023 was therefore equal to approximately 1.1 billion euros. Investments amounted to 4 billion euros at Group level, of which 3.1 billion euros related to the domestic business. Equity free cash flow on an after lease basis in the twelve months is essentially neutral while Equity Free Cash Flow is positive for 800 million euros, thanks also to the advances received for the Pnrr. To support its liquidity position, the Group has successfully closed several refinancing initiatives since the beginning of the year, raising 4.1 billion euros. On the stock market the stock recovered 1.93%.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy