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TIM sees extra progress alternatives in areas together with protection, mission-critical companies, AI-enabled merchandise and operations, next-generation connectivity purposes, and information facilities
In sum – what to know:
Poste transaction – TIM’s board defined approval of Poste Italiane’s takeover proposal might speed up execution whereas preserving TIM’s strategic route.
INWIT technique – TIM confirmed its standalone marketing strategy assumes an exit from Inwit, with migration starting from 2030, topic to ongoing authorized proceedings.
Steering maintained – TIM reaffirmed its 2026 and medium-term monetary targets whereas highlighting AI, information facilities, and digital infrastructure as future progress priorities.
Telecom Italia reaffirmed its 2026 steering throughout its second-quarter earnings name, whereas administration additionally outlined the reasoning behind the board’s July 18 approval of state-backed Poste Italiane’s takeover proposal.
Executives mentioned the transaction might strengthen TIM’s industrial positioning and speed up execution of its technique, whereas emphasizing that the corporate’s standalone marketing strategy—and its underlying assumptions, together with a deliberate exit from Inwit starting in 2030—stay unchanged.
The telco’s chief government officer Pietro Labriola described the second quarter as considered one of “execution,” saying the corporate continued to ship on its operational, monetary, and strategic commitments whereas sustaining confidence in its outlook for the rest of the yr. Administration confirmed that second-quarter efficiency was according to expectations and reiterated full-year steering.
Discussing the Poste transaction, Labriola mentioned the board’s approval stays topic to the completion of the related circumstances however represents “one other essential step” towards creating sustainable long-term worth whereas strengthening TIM’s industrial positioning. TIM’s shareholders nonetheless want to just accept Poste’s provide.
The deal will see TIM fall again into state possession as soon as once more after the Italian service turned privatized in 1997. Poste is already TIM’s largest shareholder with simply over 27% of the service’s shares.
Through the name, the telco’s administration defined that the board’s constructive advice on the bid sumitted by Poste was based mostly on two components: the monetary equity of the provide, supported by impartial advisers, and the commercial rationale of mixing TIM’s property and capabilities with Poste’s digital platform. In accordance with Labriola, the mix might create significant strategic alternatives whereas decreasing execution danger related to delivering TIM’s long-term aims.
TIM’s administration additionally mentioned that the board’s evaluation was based mostly on TIM’s standalone marketing strategy, which already helps the corporate’s monetary steering. In accordance with Labriola, the Poste transaction wouldn’t change TIM’s strategic route however might speed up execution of the commercial plan whereas decreasing execution danger.
The corporate additionally reiterated the important thing assumptions underpinning its long-term plan, together with its future relationship with tower firm Inwit. Labriola mentioned the standalone marketing strategy assumes TIM’s exit from Inwit, with migration starting from 2030, topic to the end result of ongoing authorized proceedings. The plan additionally assumes a progressive migration towards TIM and Fastweb’s joint tower enterprise, along with different operators.
TIM reaffirmed its monetary outlook for 2026, concentrating on group income progress of 2-3%, EBITDA after lease progress of 5-6%, capex depth beneath 14% of revenues and roughly €1.8 billion ($2.07 billion) in fairness free money circulation after lease.
Administration additionally reiterated its medium-term targets for 2027, together with roughly 3% income CAGR between 2024 and 2027, EBITDA after lease CAGR of 6-7%, and capex depth declining to round 13% of revenues.
Second-quarter capital expenditure totaled roughly €400 million, representing 12.7% of revenues. TIM’s chief monetary officer Piergiorgio Peluso mentioned home investments accelerated in chosen infrastructure areas, together with cellular networks, IP spine, and information facilities, whereas remaining in line with the corporate’s disciplined funding framework.
Trying past 2026, Labriola mentioned TIM sees extra progress alternatives in areas together with protection, mission-critical companies, AI-enabled merchandise and operations, next-generation connectivity purposes, and information facilities, which he described as strategic parts of Italy’s evolving digital infrastructure.