In This Article:
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Mobile Revenue Growth: Increased by 6.2% year-over-year, driven by strong post-pay growth.
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EBITDA Growth: Grew by 6.7% year-over-year, with margin expansion adding 80 basis points, surpassing 48%.
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Operational Cash Flow: Double-digit increase of almost 20%, with cash flow margin reaching almost 16%.
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Net Income Growth: Grew more than 50% year-over-year, marking the highest net income level for the first quarter in TIM's history.
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Service Revenue Growth: Grew 5.6% year-over-year, with the postpaid segment showing close to 14% yearly growth.
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Interest on Capital: Announced BRL690 million as interest on capital.
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Network Modernization: Modernizing over 3,000 sites, resulting in a 40% increase in coverage and capacity, with a 15% reduction in energy consumption.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Mobile revenues increased by 6.2% year-over-year, driven by strong postpaid growth.
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EBITDA grew by 6.7% yearly, with margin expansion reflecting efficient operational execution.
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Significant growth in users following the launch of an updated version of the Meu TIM app.
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Successful expansion in Sao Paolo with a 360-degree approach to customer experience and network modernization.
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Strong performance in B2B IoT strategy, particularly in agribusiness, logistics, and utilities.
Negative Points
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Prepaid segment continues to perform below expectations, with a negative growth outlook.
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Inflationary pressures impacting lease payments, requiring renegotiations and cost control measures.
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Highly competitive broadband market affecting TIM Live's revenue growth.
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Seasonal effects and market constraints impacting prepaid revenue dynamics.
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Operational challenges in maintaining ARPU growth amidst market pressures and customer migration.
Q & A Highlights
Q: Could you elaborate on the adjustments made and the levers for improvement in the prepaid segment, and what are the main efficiency levers for improving margins in the current inflationary environment? A: Alberto Mario Griselli, CEO: The prepaid segment is facing challenges as the market for recharges is decreasing. We have a plan involving offer adjustments, consistent communication, and tactical channel actions to increase customer loyalty and market share. Andrea Marques, CFO: We are focusing on cost reduction and efficiency programs, including AI, digitalization, and renegotiations, particularly concerning lease payments, which are impacted by inflation.