ROME (dpa-AFX) - TIM Group (TIAOF.PK), formerly known as Telecom Italia SpA, reported that its preliminary Group EBITDA increased by 8.3% year-on-year to 4.3 billion euros in fiscal year 2024. Group EBITDA After Lease rose 10.1% to 3.7 billion euros from the previous year.
Group total revenues were 14.5 billion euros, up by 3.1% year-on-year.
TIM said its board approved the offer for its unit Sparkle, received from the Ministry of Economy and Finance (MEF) and Retelit. The offer values Sparkle at 700 million euros. The signing of the deal will take place by 11 April 2025 and the sale is expected to be finalized by the first quarter of 2026, once the preparatory activities, including obtaining Antitrust and Golden Power authorizations, will be completed.
TIM's Board also approved the updated 2025-2027 strategic plan, presented by CEO Pietro Labriola, which aims to position the Group as the best and biggest digital and Telco platform in Italy, and as the most efficient TLC operator in Brazil. Leverage will be further reduced thanks to cash generation as per the plan, and shareholder remuneration will be resumed, while maintaining financial flexibility and a solid capital structure.
Group revenues are projected to rise by approximately 3% annually on average over the entire plan period from 2024 to 2027, from 13.7 billion euros pro-forma in 2024. For 2025, Group revenues are expected to grow by 2-3%, while TIM Domestic is anticipated to see a growth of 1%-2%.
Group organic EBITDA After Lease is projected to rise by 6-7% annually on average over the entire plan period from 2024 to 2027, from 3.6 billion euros pro-forma in 2024. In 2025, Group organic EBITDA After Lease is anticipated to grow by approximately 7%, with 5-6% growth expected for TIM Domestic.
For the financial years 2026 and 2027, TIM intends to remunerate its shareholders with approximately 70% of Equity Free Cash Flow After Lease, net of dividends for TIM Brasil's minority shareholders. This is expected to result in a remuneration of approximately 0.5 billion euros in 2027 and around 0.6 billion euros in 2028.
Additionally, during 2026, the company aims to provide extraordinary remuneration from the sale of Sparkle, amounting to about 50% of the proceeds, which is approximately 0.35 billion euros.
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