Telecom Italia S.p.A.
BIT-TIT
Company Overview
Telecom Italia S.p.A., together with its subsidiaries, provides fixed and mobile telecommunications services in Italy and internationally. The company operates through Domestic, Brazil, and Other Operations segments. It offers fixed and mobile voice and Internet, and public telephony services, as well as products managed and developed for individuals and families; and voice, data, and Internet services and products, and information and communications technology solutions for small and medium-size enterprises, small offices/home offices, the public sector, large accounts, and enterprises in the fixed and mobile telecommunications markets. The company also manages and develops a portfolio of regulated and unregulated wholesale services for fixed-line and mobile telecommunications operators; and development, engineering, construction, and operation of network infrastructures, information technology (IT), and systems and properties. In addition, it is involved in customer care, operating credit support, loyalty, and retention activities. The company has a strategic partnership with Google Cloud. Telecom Italia S.p.A. was incorporated in 1908 and is headquartered in Rome, Italy.
Name
Telecom Italia S.p.A.
CEO
Pietro Labriola
Website
www.gruppotim.it/en.html
Sector
Diversified Telecommunication Services
Year Founded
1908
Company Statistics
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Bulls Say
The sale of the fixed network for EUR 18.8 billion has reduced TIM's leverage to 2 times net debt/EBITDAaL from 4 times.
If KKR and Open Fiber merge their networks, TIM could receive additional earnout payments to further reduce leverage.
The business in Brazil gives some exposure to the growing South American market.
Bears Say
The competitive environment in Italy is fierce in mobile and broadband. We expect TIM will continue to lose market share in both.
After selling its fixed network, TIM has become a broadband service provider, a lower-margin activity with less room to differentiate versus cheaper providers.
Management has continually missed its guidance targets, creating more uncertainty in an already competitive environment.