Telecom Italia reports growth in second quarter earnings

Investing.com -- Telecom Italia posted second-quarter core earnings on Wednesday that matched analyst expectations, with growth in its Brazilian unit and enterprise division alongside a return to growth in its domestic market.

The company's earnings before interest, tax, depreciation and amortization after leases for the three months ending June 30 reached €998 million ($1.14 billion), compared with analyst consensus of €995 million.

The results mark the first quarterly report since TIM's board approved a € 13B+ takeover offer from its largest shareholder, Poste Italiane, on July 18.

For the first half of 2026, group revenues rose 2% year-on-year to €6.8 billion, or 3.3% excluding the MVNO component. Group EBITDA after lease increased 1.2% to €1.8 billion, or 6.3% net of MVNO activities.

The company returned to net profit in the second quarter with €88 million, compared with a loss of €8 million in the same period last year and a loss of €292 million in the first quarter of 2026.

TIM Consumer recorded total revenues of €2.9 billion, down 2.7% year-on-year, affected by the expected decline in MVNO business. Fixed ARPU increased 2% to €33.0 per month in the second quarter.

TIM Enterprise posted total revenues of €1.7 billion, up 5.6% year-on-year, with cloud business driving growth. Cloud revenues increased 18.1% and now account for 45% of service revenues.

TIM Brasil reported total revenues of €2.3 billion, up 6% year-on-year, with EBITDA after lease at €0.9 billion, up 5.5%.

The company generated €0.7 billion of equity free cash flow after lease in the first half. Adjusted net financial debt after lease stood below €7.3 billion at June 30, with leverage at 1.94x.

TIM confirmed its guidance for 2026 and 2027.

You May Also Be Interested In

• Ingram Micro Holding Corporation (INGM) Tops Q2 EPS by 4c
• Socket Mobile (SCKT) Reports Q2 Loss of $0.16
• Penumbra, Inc. (PEN) Misses Q2 EPS by 28c