TIM sales hit by Brazil, but reports positive trend at home

27 Jul 2016

Telecom Italia (TIM) has reported its results for the first six months of 2016, claiming that the second quarter in particular was the best quarter in its domestic market since 2009. While overall group revenues for the six months to 30 June dropped 4.9% year-on-year in organic terms – or 9.9% as reported – to EUR9.10 billion (USD10.3 billion), TIM’s Italian consumer revenues were up by 1.4% at EUR3.57 billion, boosted by a 7.3% increase in first-half mobile consumer revenues to EUR1.78 billion. Brazilian subsidiary TIM Brasil saw sales slide by EUR833 million to EUR1.86 billion. Meanwhile, group EBITDA rose 2.4% in the first half to EUR3.73 billion and net profit jumped from EUR33 million in H1 2015 to EUR1.01 billion, boosted by a number of one-off items.

TIM had 29.74 million mobile subscribers in Italy at the end of June 2016, down 1.1% from 30.08 million the year before, while TIM Brasil reported 63.99 million users, down 14.2% y-o-y from 74.60 million at June 2015. The domestic unit had 7.09 million retail broadband lines in service as of mid-2016, an increase of 1.7% in twelve months, though the total number of fixed lines in service dropped 5.1% to 11.47 million.