1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
TIM again delivered solid postpaid customer growth during the first quarter, building on the momentum gained in late 2021. With the Oi acquisition closed, management provided medium-term financial expectations, calling for high-single-digit revenue growth and steady margin improvement through 2027. We believe these figures are reasonable. We’re leaving our fair value estimate at $16 per ADR.
TIM is one of the top three wireless carriers by subscribers in Brazil, with 52 million subscribers, equal to about 20% of the market. TIM also owns some fixed-line assets, including an extensive long-haul fiber network and local networks that reach about 6.7 million locations (a bit less than 10% of the country). The firm is investing to expand its fiber network to more customer locations, including through its minority ownership in an infrastructure partnership. TIM leases capacity on the venture's network to serve retail customers. The company is 67%-owned by Telecom Italia.
