An improving trend: the third quarter of Tim closes with a rising curve. The turnover stood at 4 billion, + 1.1% year on year. And they are the revenues from services recorded the best performance with + 3% in the quarter. On the Ebitda front, even if the figure is negative for 6 and a half percentage points to 1.6 billion the the negative growth slows down compared to previous months.
Achieved 90% of the cost containment target for the whole of 2022. And net debt after lease amounted to € 20.1 billion after the disbursement of 1.7 billion of the last installment for 5G frequencies.
Off to Enterprise corporateization
Tim’s Board of Directors, meeting under the chairmanship of Salvatore Rossi, has approval of the start-up of the corporateization process of Tim Enterprisein line with what was communicated at the Capital Market Day last 7 July.
In the world of Retail 4.0, speed is everything: how to keep up?
Next on the premium Value vs. Volume
“The Group results in the third quarter, during which the stabilization and relaunch of the domestic business continued and the acceleration of the development of Tim Brasil, are fully in line with the targets for the year 2022 that had been partially revised upwards last August ”, explains the company in a note following the board of directors called to approve the accounts. “In Italy, the premium positioning strategy ‘Value vs. Volume ‘which saw promotional activities limited as much as possible and which contributed to a greater rationality of the fixed and mobile market“. And during the quarter “they are also cost containment actions continued aimed at increasing the level of structural efficiency of Tim Domestic (‘Transformation Plan’, tcumulative arget of reduction in cash costs of € 1.5 billion by 2024 compared to the inertial trend). At 30 September, the reduction in operating costs with respect to the inertial trend amounted to approximately 270 million euros, approximately 90% of the target set for 2022 gross operating margin of 1.6 billion ”.
The results of the business units
Tim Consumer reported total revenue and service revenue down 9.6% yoy and 7.4% yoy in nine months, respectively, with an improvement in the third quarter (-8.6% and -6.0% respectively).
Tim Enterprise in the nine months confirmed a growth higher than that of the market with an increase in total revenues and revenues from services of 5.9% year on year and 8.8% year on year respectively (+ 5.5% and + 7.4% respectively in the third quarter).
The mix of revenues in the nine months showed a trend in line with expectations:
- Connectivity (-4% YoY)
- Cloud (+ 56% YoY)
- IoT (+ 7% YoY)
- Security (+ 35% YoY)
Taken together, ICT services generated 56% of revenues overall compared to 51% in the first nine months of 2021
NetCo reported total revenue and service revenue down 4.8% yoy and 3.8% yoy in nine months, respectively, with an improvement in the third quarter (-2.6% and -2.7% respectively). The reduction – explains the company – is mainly due to one-off transactions accounted for in the first half of last year which had an impact of approximately 3.2 percentage points on the reduction in total revenues and 1.7 percentage points on that of revenues from services. As of September 30, NetCo manages 16 million fixed accesses (of which over 71% in FTTx technologies) with a market share of 82% and FTTx coverage of over 94% of active lines (over 57% with speeds over 100 Mbps). The technical units reached with FTTH technology are 7.2 millionequal to a coverage of around 29%, up by 4 percentage points compared to the end of 2021.
Fixed and mobile customers
THEThe total number of Tim’s mobile lines stood at 30.5 million, up by 88 thousand units compared to the previous quarter. In a market that remains competitive in the lower-value part (low-spending customers), the trend of stabilization of the customer base continues: in the ‘mobile number portability‘(or the flow to other operators) Tim “records the best result among infrastructure operators “, highlights the company, with a net balance of -42 thousand lines. At the same time, the sector sees the flow of portability shrink overall by more than 5% year-on-year, demonstrating the cooling of competition in the higher-value part (high-spending customers).
Despite the absence of the voucher plan for consumer customers which had also had a positive impact on the performance of the third quarter of 2021, the trend of fixed lines is improving compared to the previous quarters (-59 thousand). Average revenue of retail customers (Arpu broadband + Ict) increased by 6.2% year on year. In the third quarter, over 100,000 new ultra-broadband retail and wholesale lines were activated, reaching 10.5 million units, an increase of over 8% year on year.
CGIL, CISL and UIL to Meloni: “The Tlc market at risk”
“Tim Group Corporate Structure and overall hold of the Tlc sector”: this is the subject of the letter sent by Cgil, Cisl and Uil to Prime Minister Giorgia Meloni and for information to the Undersecretary for Innovation Alessio Butti.
Here is the content of the letter: “Dear President, we would like to share our very strong concern regarding the future of the Tim Group, its current employment levels and its industrial future. A future that cannot fail to affect the general structure of the country’s telecommunications market. To the previous government and to all the Parliamentary Groups of the previous Legislature, on several occasions, we have had the opportunity to explain our reasons on the need to avoid a “stew” of the activities of the Tim Group, an action that would not suit the important interests and development of the country and which would potentially leave thousands of redundancies in the field. The Tim company continued on its idea of corporate splitting. The 2022-2024 business plan presented by Tim aims to maximize the creation of value for shareholders, with specific reference to the Group’s infrastructural assets, also through solutions that involve overcoming vertical integration, highlighting the advantages of the transaction in terms of recovery of commercial competitiveness of the company “.
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Tim, the curve is reversed. Go to the Enterprise – CorCom corporate partnership
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