In a green-tinted Piazza Affari, Tim is currently losing 2.69%, thus finding himself at 0.217 euros per share, the day after having presented the half-yearly accounts that still show elements of uncertainty. In particular, in the first half of 2022 Tim recorded revenues of 7,557 million euros and a Group Ebitda of € 2,658 million (€ 2,753 million in the first half of 2021, -3.5% in reported terms, -10.8% in organic terms). The net result for the first half of 2022 records a loss of -483 million euros (-279 million euros in the second quarter of 2022 alone) against the -149 million euros recorded in the first half of 2021. Looking at the quarterly results, Tim recorded Group revenues of 3.9 billion euros, with a decrease of 1 , 4% compared to the second quarter of 2021 but an improvement compared to the previous quarter; while the Group’s service revenues amounted to 3.6 billion euros, up 1% compared to the same period of 2021 and also in this case an improvement compared to the previous quarter. At 30 June 2022 lnet financial debt adjusted by Tim amounts to 24,654, an increase of a further 2,467 million euros compared to the end of 2021.
Cost containment
Revenues in the second quarter were driven by those related to innovative services, in the domestic Business segment, which recorded an increase of 18.4% compared to the same period of 2021. As the Equita analysts observe, theAdjusted Ebitda was down by 18% compared to the second quarter of 2021, but better than 2% compared to the estimates of Equita and the consensus of analysts and this thanks to the decrease in costs of 1% compared to the same period of 2021; “A good result considering the inflationary pressures”. In Italy, Tim confirmed the positioning strategy in the second quarter as well “Value vs Volume” and this by limiting promotional activities as much as possible both in mobile and fixed. In addition, the cost containment plan continues through the Transformation Plan, with various actions aimed at increasing TIM’s level of structural efficiency. Finally, in the first half of 2022 Tim declares to have reached about 70% of the target set for 2022 for cost reductionswith a decrease in operating costs which amounted to approximately 200 million euros.
Cresce Tim Brazil
Tim’s growth continues in Brazil, which recorded a 15.2% increase in revenues from services and an Ebitda up 11.8%. In particular, only in the second quarter Tim Brazil saw a strong acceleration in the growth of revenues from services, + 21.9% compared to the second quarter of 2021, but also in EBITDA (+ 18.2% YoY) and in the generation of operating cash (EBITDA-Capex, + 19.9% YoY). These results were achieved thanks to a solid organic performance and the contribution, starting in May, of mobile assets of Oi.
Improve the Ebitda Guidance
In light of the trend of the first half Tim has Ebitda guidance for 2022 revised upwards and as the Equita analysts point out, who maintain a rating on Tim “Hold“(Keep in portfolio) e target price a 0,39 eurothe revision largely derives from the Eur-Brl exchange rate which went from 6.30 to 5.56, with a 13% benefit on Tim Brazil’s Ebitda in euros.
Agreement with Dazn
Today Tim announced that he had achieved a agreement with Dazn, which allows the latter to distribute the rights to watch the matches of the Serie A Tim Championship. Thanks to this agreement, “the objective of distributing rights on a plurality of platforms is achieved with a view to creating a more sustainable economic model subject to less volatility”.
The technical point
From a graphical point of view, Tim’s downward trend worsens, which he has been in since the beginning of the year reduction of almost 50%. In particular, in recent weeks the stock on the stock market has broken down the support area, now the main resistance, placed at a quota 0,2363 euro for action and arrived at the test of € 0,201, new historical low for the telecommunications company. Now the stock is at 0.2197 euros and in case of continuation of the rebound (+ 9% from the all-time low at 0.201), the upward breakout, and with volumes, of the level of static resistance at € 0.2258, with the closing of the gap that opened with the session of 21 July, it could push prices first towards 0.235, with a deeper target towards 0.26 euros per share. On the contrary, in the event of further weakness, the failure of the support level at 0.2130 it could quickly lead prices to new historical lows.