Key insights
- Telecom Italia (TIM) reported slightly weaker than expected Q1 revenue due to MVNO headwinds, although TIM Brasil performed strongly. While the company reaffirmed its full-year guidance and anticipates stronger performance in H2, the revenue miss and EBITDA decline could weigh slightly on broader European telecom sentiment.
Investing.com -- Telecom Italia reported first-quarter revenues of €3.3 billion, up 1.4% year-on-year but slightly below analyst consensus of €3.34 billion, as a temporary decline in mobile virtual network operator revenues weighed on domestic performance.
The company's American depositary receipts rose 1% following the release.
The Italian carrier said the MVNO drag was anticipated, stemming from the progressive phasing of major wholesale customers between 2025 and 2026.
Excluding the MVNO segment, group revenue growth would have been 3.1% year-on-year, with service revenue growth of 4.1%.
TIM Brasil was the standout performer, with total revenues up 6.4% year-on-year to €1.1 billion, delivering EBITDA after lease growth for 12 consecutive quarters.
Domestic revenues fell 0.9% to €2.2 billion, while TIM Enterprise continued its positive trajectory, posting 3.2% revenue growth and marking its fifteenth consecutive quarter of growth.
Cloud revenues within the enterprise division surged 14.5% year-on-year.
Group EBITDA after lease came in at €0.8 billion, down 2.7% year-on-year, in line with the company's own estimates. Net debt after lease stood at €7.3 billion, with leverage below 2 times.
CEO Pietro Labriola said the results were consistent with full-year targets. "The first three months of 2026 are in line with the Group's forecasts and with the guidance provided to the market for the year," he stated, adding that 2026 cash flow is expected to drive "a further significant reduction in the Group's debt and leverage."
Management also forecasts a significant acceleration in the second half.