Telecom Italia Beats Expectations in 4Q22

Preliminary report for the fourth quarter of 2022 shows that Telecom Italia’s revenue grew 3.6 percent to €4.3 billion. The increase in revenue was fuelled by growth in Brazil.

Revenue in the market hit €1.1 billion, up from €761 million, though domestic sales were flat at €3.2 billion. The company did not break out net profit, as net debt stood at €25.4 billion in 2022, up €3.2 billion.

TIM unveiled an industrial growth plan outlining its goals for the 2023-2025 period. The group is pinning its hopes on a revival in its home market following years of struggles and a wider turnaround strategy for its core units. The Board of directors had approved the industrial plan presented by CEO Pietro Labriola, following a transformation process that commenced in 2022.

“Despite radically different macroeconomic conditions, the latest plan accounts for better-than-expected results recorded in 2022 and envisions further acceleration at group level,“ TIM said in a statement. Among its main goals, it is planning for group revenue from services to grow by a low single-digit in 2023, with high gains in Brazil and a stable home market. Group CAPEX is expected to hit €4 billion.

In Italy, the company said the business was back to growth after six years at the start of 2023, and outlined a range of strategies for its different units to continue the momentum through 2025. For example, in its home consumer division, it aims to reposition itself towards establishing itself as a premium operator which stands out from the competition. In enterprise, it is targeting shifting from traditional to advanced connectivity, and in Brazil, it wants to build on momentum while growing scale through further integration of Oi’s assets.