Tim, loss drops to 204 million in the first quarter: revenues at 3.6 billion euros
Tim closed the first quarter of the year with a loss of 204 million euros, down from the 228 million red in the same period of 2021, and revenues down 2.3% to 3.644 billion. THE income from group services down by 2.5% on an annual basis to 3.4 billion, in line with the guidance, due to the changed context in the domestic market which last year benefited from the voucher plan for families and the increased connectivity request resulting from the pandemic. Also organic EBITDA is in line with the guidance and stood at 1.4 billion euros (-13.3%). Net financial debt it is stable at 17.7 billion.
There cash generation exceeds 120 million at the level of equity free cash flow after lease and beats analysts’ expectations. For Tim Brasil revenues from services up 8.4% ed EBITDA up by 5.1%. From the acquisition of part of the mobile activities of the Oi group result revenues for 1.8 billion Brazilian reais and EBITDA for 1.1 billion in the remaining months of 2022.
“The Tim group“, underlines a note,” has initiated an important process of change, the first phase of which was completed only at the end of the first quarter and was achieved through the appointment, at the end of January, of the CEO, Pietro Labriolathrough the presentation of the group’s transformation guidelines in early March and the completion of the new one executive team in April. The first quartertherefore, despite being characterized by a trend of the business and results in substantial continuity with the trend already highlighted in the last part of 2021, it marks a moment of discontinuity in the management of the group, with a strong focus on compliance with the guidance “.
“Next 7 July”, continues the note, “on the occasion of the Capital Market Day from Timthe reorganization project will be presented to the market which, overcoming the vertical integration model, will allow to accelerate the path towards a sustainable generation of Cash Flows and to bring out the intrinsic value of asset group. In the first quarter the company has kept a premium positioning strategy (‘value vs. volume’), despite the difficult competitive environment and the absence of the voucher plan for i Consumer customers which had had a highly positive impact on performance in the same period last year. “