TIM: Board of Directors Approves Financial Report on December 31, 2024

Preliminary results reviewed by the BoD confirmed Group returns to profitability in the second half of 2024 with consolidated net profit of 139 million euros.
TIM’s Board of Directors met today under the chairmanship of Alberta Figari and approved the Consolidated Financial Statements of the TIM Group and the draft Separate Financial Statements of TIM S.p.A. as of December 31, 2024.
The Group confirms the preliminary results reviewed by the Board of Directors and the improvement of the business following the disposal of NetCo, which brought a significant increase in operating margins and a return to consolidated profit in the second half of the year.
  • Group revenue of €14.5 bln (+3.1% YoY)
  • EBITDA AL of €3.7 bln (+10.1% YoY)
  • Group EBIT of €1.5 bln (+15.1% YoY)
  • Net financial position AL of 7,266 million euros
The net profit in the second half of 2024 – the first half-year since the sale of NetCo – was 139 million euros. On an annual basis, a full-year loss is recorded, down 67% year-on-year to 364 million euros.
The Board of Directors also approved the Consolidated Sustainability Statement, contained in the Group’s Consolidated Financial Statements and prepared for the first time in accordance with the requirements contained in Legislative Decree 125 of September 6, 2024, which implemented the relevant EU regulations on the “Corporate Sustainability Reporting Directive”.
THE GROUP’S ESG PERFORMANCE
The Consolidated Financial Statements, subject to approval, include the Consolidated Sustainability Statement prepared by Directive (EU) 2022/2464 of December 14, 2022 (“Corporate Sustainability Reporting Directive” or “CSRD”) implemented by Legislative Decree 125/2024 of September 6, 2024.
Furthermore, at the meeting of December 11, 2024, the Board of Directors appointed Maria Enrica Danese (Head of the Group’s Corporate Communication & Sustainability function)  as Executive for TIM’s Sustainability Consolidated Financial Statements.
INTRODUCTION
The TIM Group and TIM S.p.A. Consolidated Financial Statements for the year 2024 and the comparative figures for the previous year have been prepared in compliance with IFRS issued by the International Accounting Standards Board and endorsed by the European Union (“IFRS”). The accounting policies and consolidation principles adopted are consistent with those applied for the TIM Group Consolidated Financial Statements and the TIM S.p.A. Separate Financial Statements at December 31, 2023, except for the amendments to the standards issued by IASB and adopted starting from January 1, 2024.
The TIM Group’s operating performance is affected by other non-recurring net operating expenses connected to events and transactions that, by their nature, do not occur on an ongoing basis in the normal course of operations and which have been shown because their amount is significant. Non-recurring charges include, among others, any goodwill impairment changes, charges associated with corporate reorganization/restructuring, provisions for regulatory disputes and potential liabilities related to them, liabilities with customers and/or suppliers, provisions for onerous contracts and prior-year adjustments.
On July 1, 2024, the transaction for the sale of the business related to the domestic fixed network (primary network and wholesale business of TIM S.p.A.), to FiberCop S.p.A. and Telenergia S.r.l. (“NetCo”) was completed. The P&L results from this business have been classified, by IFRS 5, as Assets Sold/Available-for-Sale Assets. As a result of this classification by NetCo, the figures in the separate income statement and the cash flow statement for 2023 have been consistently reclassified, as required by IFRS 5.
To provide a better understanding of the performance of the business, in this document, a section has been included containing organic economic and financial information relating to the operating performance in 2024 and 2023 for the scope of “TIM Group ServCo”, reworked based on management information. Such organic like-for-like information is prepared by simulating the separation operation of the fixed network, with the creation of the NetCo component and the consequent definition of the ServCo TIM Group perimeter, as if it had occurred at the start of the reference period (January 1). Therefore, in this document for all organic data the ‘like-for-like’ definition is used to highlight both organic information (Business Unit Brazil) and organic information as reconstructed above (TIM S.p.A., Domestic Business Unit, TIM Group), simulating for the first half of 2024, the impact of the relationship between TIM and NetCo/FiberCop, governed by the Master Service Agreement (MSA) and recording, for the second half of the year, the actual accounting impact of the MSA and the Transitional Services Agreement (TSA).
The TIM Group uses some alternative performance indicators in addition to the conventional financial indicators required by IFRS Accounting Standards.
Specifically, these alternative performance measures refer to: EBITDA; EBIT; organic change and impact of non-recurring items on revenues, EBITDA and EBIT; EBITDA margin and EBIT margin; Net financial debt carrying amount and adjusted net financial debt; Equity Free Cash Flow, Cash flow from operations; Cash flow from operations (net of licenses). Following the adoption of IFRS 16, the TIM Group also presents the following additional alternative performance measures: EBITDA After Lease (“EBITDA-AL”), Adjusted net financial debt After Lease, and Equity Free Cash Flow After Lease.
In line with the ESMA guidance on alternative performance measures (Guidelines ESMA/2015/1415), the meaning and contents of such are explained in the attachments and the analytical detail of the amounts of the reclassifications introduced and of the methods for determining indicators is provided.
Finally, it should be noted that the audit of the TIM consolidated and separate Financial Statements at December 31, 2024 has not yet been completed.
MAIN CHANGES IN THE SCOPE OF CONSOLIDATION OF THE TIM GROUP
During 2024, the TIM Group:
  • On July 1, 2024, TIM S.p.A. transferred the Business Unit – consisting of the activities relating to the primary network, the wholesale business and the entire shareholding in the subsidiary Telenergia S.r.l. – to FiberCop S.p.A., a company that already managed the activities relating to the secondary fiber and copper network; concurrent with the transfer, TIM S.p.A. sold its entire stake in the share capital of FiberCop S.p.A. to Optics Bidco S.p.A. (a subsidiary of Kohlberg Kravis Roberts & Co. L.P. (“KKR”)) and, together with FiberCop S.p.A., entered into a Master Services Agreement regulating the terms and conditions of the services provided between FiberCop S.p.A. and TIM S.p.A.. On that date, therefore, the deconsolidation of the transferred entity occurred and the effects of the Transaction on the income statement and financial position were recognized. The income statement figures for the transferred Business Unit, for Telenergia S.r.l. and FiberCop S.p.A., falling under the TIM Group until the sale date, were classified as Discontinued Operations, by IFRS 5;
  • On June 24, 2024, through its subsidiary Telsy S.p.A. (Domestic Business Unit), the TIM Group acquired control of QTI S.r.l., bringing the Group’s stake in the company’s share capital from 49% to 80%. QTI S.r.l. is engaged in the development, production and marketing of innovative hi-tech products and services.
The main changes in the scope of consolidation in 2023 were the following:
  • The acquisition on April 20, 2023, by Telsy S.p.A. of the entire share capital of TS-Way S.r.l., a company engaged in the field of IT security (Domestic Business Unit);
  • The sale on August 4, 2023, by TIM S.p.A. of the entire share capital of TIM Servizi Digitali S.p.A. (Domestic Business Unit).
Furthermore, in November 202,3, the TIM Group, through Olivetti S.p.A., had sold the Olivetti business unit dedicated to cash systems for the retail sector to Buffetti (Dylog group).
TIM GROUP RESULTS (NETCO DISCONTINUED OPERATIONS) FOR 2024
TIM Group’s total revenues (NetCo Discontinued Operations) in FY2024 amounted to 14,442 million euros, +0.9% compared to FY2023 (14,311 million euros).
Net impairment losses on non-current assets in FY2024 amounted to 94 million.
In preparing the Annual Report for 2024, the TIM Group carried out an impairment test on goodwill. The results of that testing, carried out in accordance with the specific procedure adopted by the Group, confirmed the amounts of Goodwill allocated to the Group’s individual Cash Generating Units.
On February 12, 2025, the Directors of TIM S.p.A. accepted the binding offer for the sale of the entire stake (100%) held in Telecom Italia Sparkle, and the recoverability of the related net assets was verified after allocating the portion of Domestic goodwill allocable to the Sparkle group, estimated at 52 million euros. As a result of this assessment, it emerged that it was necessary to make an impairment charge that resulted in a total impact on the income statement of 80 million euros, 52 million euros of which related to the allocated goodwill.
TIM Group EBIT (NetCo Discontinued Operations) in FY2024 is 1,545 million euros (1,342 million euros in FY2023).
Other income from investments in 2024 included the net gain (62 million euros) related to the sale of TIM’s remaining 10% stake in the share capital of the holding company Daphne 3 S.p.A., which holds 30.8% of the share capital of Infrastrutture Wireless Italiane (“INWIT”).
The result related to “Discontinued operations/Non-current assets held for sale” was negative 447 million euros; in particular, it incorporates the capital gain in the amount of 183 million euros, already net of incidental costs, recognized in the second half of 2024 following the completion of the sale of NetCo.
The Net loss for 2024 was 364 million euros (loss of 610 million euros attributable to the owners of the Parent). Specifically:
  • The second half of 2024 saw a profit of 139 million euros (profit of 36 million euros attributable to the owners of the Parent);
  • The first half of 2024 resulted in a loss of 503 million euros (loss of 646 million euros attributable to the owners of the Parent), also related to the assets included in Discontinued Operations, which were sold on July 1, 2024.
The headcount of the TIM Group at December 31, 2024 was 26,900, of which 17,630 in Italy (47,180 at December 31, 2023, of which 37,670 in Italy).
Capital expenditures and investments for mobile telephone licenses/spectrum of the TIM Group (NetCo Discontinued Operations) for 2024 were 2,129 million euros (2,168 million euros in 2023).
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TIM Group
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