TIM Group service revenues down 8.2% in Q2; KKR decision due end-August

5 Aug 2020

Telecom Italia Group (TIM Group) says service revenues were down 8.2% year-on-year in the second quarter of 2020 on a comparable basis at EUR3.56 billion (USD4.19 billion). The fall was attributed to the impact of COVID-19 prevention measures, which led to ‘reduced footfall in shops during the lockdown and by the lower tourist flows to and from Italy, which led to lower volumes of roaming traffic’. Q2 EBITDA dropped 6.4% to EUR1.76 billion, in comparable terms, which includes the deconsolidation of tower company INWIT. Net profit for the first half of the year rose 23% to EUR678 million, boosted by the INWIT deal. Second quarter net profit stood at EUR118 million, but a comparable figure for Q2 2019 was not published.

TIM had 30.50 million mobile lines in service in Italy at the end of June 2020, down from 31.66 million a year earlier, including 10.35 million M2M connections (up from 9.71 million) and 20.16 million ‘human’ lines (down from 21.96 million). Its Brazilian unit had 52.03 million mobile subscribers, down from 54.97 million as of Q2 2019.

Meanwhile, TIM says it is ‘favourable’ to a EUR1.8 billion offer from investment fund KKR for a 37.5% stake in its ‘FiberCop’ domestic last-mile networks business. It expects to make a final decision at the end of August.

Brazil, Italy, Telecom Italia (TIM), Telecom Italia Group (TIM Group)