Investing.com – Tim shares rose after last night the company presented its first accounts following the sale of the network to Kkr.
The title at 10 Telecom Italia (BIT:) gains more than 2% compared to 0.2267 euros per share the previous day.
The economic results published concern ServCo, the perimeter that includes TIM Consumer, TIM Enterprise, TIM Brasil and Sparkle and the economic-financial management information is developed by the company that simulates the effects of the separation operation of NetCo and also takes into account the effects of the commercial relations with the network, arising from the MSA (Master Service Agreement) signed with NetCo and the contextual arrangement of domestic activities in the areas of TIM Consumer and TIM Enterprise.
In the first half of the year, I total income of Tim ServCo was worth 7.1 billion euros, up 3.5% year-on-year (+1.6% in the domestic sector to 4.9 billion euros, +7.8% in Brazil to 2.3 billion Euros); The revenues from services they grow by 4.0% year-on-year to 6.7 billion euros (+2.2% in the domestic sector to 4.5 billion euros, +7.6% in Brazil to 2.2 billion euros);
Also going upebitdawhich increased by 9.4% year-on-year to 2.1 billion euros (+8.5% in domestic to 1 billion euros, +9.9% in Brazil to 1.1 billion euros).
It also growsebitda after leasewhich increased by 13.0% year-on-year to 1.8 billion euros (+8.8% in the domestic sector to 1 billion euros, +17.8% in Brazil to 0.8 billion euros).
The group’s adjusted net financial debt after leasing as a going concern as of June 30, 2024 amounts to 21.5 billion euros, which is largely stable (+0.1 billion euros) compared to March 31. Following the sale of NetCo, which was completed on July 1, the pro-forma adjusted net financial debt after the lease of the Tim ServCo group reached 8.1 billion euros, in line with forecasts.
The evolution of the net financial position in the second half illustrates a positive net cash flow of approximately 0.6 billion euros, which will benefit the performance of operating cash generation, the positive contribution of net working capital usually, the reduction of financial charges and the performance of net working capital rare, which will be neutral in the second half of the year.
“The pro-forma liquidity margin following the sale of NetCo and the resulting debt reduction covers financial maturities up to 2028,” the telco specified in a note.
“The sale of NetCo – continued Tim – not only had a great value leverage but it also structurally changes the cost base of TIM ServCo Domestic.
Comparing the new domestic perimeter to the previous one that included NetCo, in the first half of the year, like-for-like cash amounts (Opex+Capex) were lower by around 0.8 billion euros, with a different mix:
- About 0.1 billion euros in increased Opex, due to costs for access services, partially offset by a reduction in labor costs;
- Around 0.9 billion euros of lower Capex, due to the deconsolidation of investments related to sold assets.
The change in the mix means that the cost structure of the domestic business is moresuccess driven’and therefore more sustainable”.
While waiting for the conference call on the accounts to be held at 11am, the company led by CEO Pietro Labriola confirmed all the guidance given to the market for the current year.
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