Company Reports

While we expect TIM to generate steady results in the coming years, we believe the firm’s smaller size in the wireless business and tiny broadband customer base leave it at a disadvantage to both its larger competitors. The move to acquire I-Systems provides a modest fixed-line network footprint and could portend additional deals, but the broadband market is highly fragmented and brutally competitive. We don't believe TIM has any obvious paths to improve its competitive position.

TIM grew service revenue 5.7% year over year in the second quarter, aided by an acquisition and lumpy sales to business customers. Core wireless service revenue growth slowed to 3% from 5% in the prior quarter. The EBITDA margin expanded less than 1 percentage point from a year ago to 51.5%.

TIM's service revenue grew 6.5% in the first quarter, up from 5% in 2025, driven by an acquisition, nonrecurring revenue, and new interconnection agreements that also include higher costs. Core wireless revenue growth slowed to 5%, the slowest pace in more than a year.

While we expect TIM to generate steady results in the coming years, we believe the firm’s smaller size in the wireless business and tiny broadband customer base leave it at a disadvantage to both its larger competitors. The move to acquire I-Systems provides a modest fixed-line network footprint and could portend additional deals in a brutally competitive market, but thus far, management seems content to play it safe.

TIM modestly accelerated service revenue growth to 5.1% during the fourth quarter, with steady performance in the wireless segment and a big jump within the small fixed-line business. The EBITDA margin expanded sharply to 53.1% from 50.5% the year before. Free cash flow grew 28% for the full year.

While we expect TIM to generate steady results in the coming years, we believe the firm’s smaller size in the wireless business and tiny broadband customer base leave it at a disadvantage to both its larger competitors. The move to acquire I-Systems provides a modest fixed-line network footprint and could portend additional deals in a brutally competitive market.

While we expect TIM will generate steady results in the coming years, we believe the firm’s smaller size in the wireless business and modest fixed-line footprint leave it at a disadvantage to both its larger competitors.

TIM reported a 4.8% increase in service revenue, continuing the gradual slowing trend of the past few quarters. The firm added 414,000 net postpaid phone customers, similar to a year ago but trailing its two primary rivals. Broadband sales continued to decline despite 23,000 net customer additions.

TIM's service revenue increased 5.1% from the prior year. The firm added 451,000 net postpaid phone customers, a solid improvement versus a weak first quarter (275,000). The much less valuable prepaid business continues to shrink, shedding 590,000 customers during the quarter.

While we expect TIM will generate steady results in the coming years, we believe the firm’s smaller size in the wireless business and modest fixed-line footprint leave it at a disadvantage to both its larger competitors.

TIM continues to lose net wireless customers, shedding 20,000 during the first quarter, but revenue growth accelerated amid strong pricing discipline and the continued migration from prepaid to postpaid plans. Service revenue expanded 5.6% year over year, while EBITDA increased nearly 7%.

TIM's growth continued to decelerate during the fourth quarter, with service revenue up 5.1% year over year, down from an average of about 7% through the first three quarters of 2024. TIM lost 91,000 net wireless customers, with ongoing prepaid losses offsetting postpaid phone customer additions.

TIM, 67%-owned by Telecom Italia, is the smallest of the three major wireless carriers in Brazil. While we expect TIM will generate steady results in the coming years, we believe the firm’s modest fixed-line footprint leaves it at a disadvantage to both its larger competitors.

Service revenue growth decelerated during the third quarter to 6.1% year over year after holding above 7% since the early 2022 Oi acquisition. TIM added 163,000 new wireless customers, with ongoing prepaid losses partially offsetting 428,000 net postpaid phone customer additions.

TIM, 67%-owned by Telecom Italia, is the smallest of the three major wireless carriers in Brazil. The removal of Oi from the market in 2022 has greatly improved the competitive environment. While we expect TIM will generate steady results in the coming years, we believe the firm’s modest fixed-line footprint leaves it at a disadvantage to both its larger competitors.

TIM’s emphasis on pricing discipline over customer additions continued to produce slightly slower growth than its two primary rivals while delivering solid profitability during the second quarter. We expect the firm will struggle to maintain share versus America Movil and Vivo, but we also believe the competitive environment in Brazil will improve. Our fair value estimate remains $19.

TIM, 67%-owned by Telecom Italia, is the smallest of the three major wireless carriers in Brazil. The removal of Oi from the market in 2022 has greatly improved the competitive environment. While we expect TIM will generate steady results in the coming years, we believe the firm’s modest fixed-line footprint leaves it at a disadvantage to both its larger competitors.

TIM posted modestly disappointing first-quarter results, but we don’t see any reason to change our outlook for the year or our $21 fair value estimate.

TIM, 67%-owned by Telecom Italia, is the smallest of the three major wireless carriers in Brazil, claiming about 24% market share based on customers served. The removal of Oi from the market in 2022 has greatly improved the competitive environment. While we expect TIM will generate steady results in the coming years, we believe the firm’s modest fixed-line footprint leaves it at a disadvantage to both its larger competitors.

TIM’s fourth quarter looked similar to recent results, with strong pricing discipline driving relatively weak customer metrics but solid wireless revenue growth and margin expansion. We continue to be impressed with profitability improvements, both in terms of margins and declining capital investment needs. We are increasing our fair value estimate to $21 from $19 to reflect these gains.