Telecom Italia S.p.A. Q1 2026 Earnings Recap

TIM’s shares edged up 1.3% following Q1 results that largely aligned with expectations, reflecting steady execution despite ongoing MVNO-related revenue and EBITDA headwinds and a cautious, back-end-loaded outlook for the year.

Key Takeaways

• Group revenues increased 1.4% year-on-year to EUR 3.3 billion; excluding MVNO impact, underlying growth was 3.1%.
• EBITDA after lease declined 2.7% to EUR 0.8 billion, fully attributed to the EUR 50 million EBITDA reduction from MVNO transition; underlying business EBITDA grew 4.1%.
• Domestic revenues fell 0.9% with service revenues flat overall, but excluding MVNO, underlying domestic revenues grew 1.5%, and EBITDA after lease decreased 8.2% due to MVNO.
• CapEx disciplined at 12.5% of revenues (EUR 0.4 billion), supporting EBITDA after lease minus CapEx growth of over 5%.
• Cash flow pressured by seasonal working capital absorption and delayed advance payments, resulting in negative EUR 0.4 billion equity free cash flow for the quarter.