Milan, Italy – October 26, 2026 – Telecom Italia (TIM) today announced a period of significant financial and operational improvement in the first half of 2026. The company showcased a strong rebound, characterized by accelerating growth in its key markets, particularly Brazil, and a notable uplift in its digital services portfolio. This positive momentum is underpinned by strategic initiatives focused on enhancing customer value, expanding its advanced service offerings, and prudent cost management.
TIM Group revenue saw a healthy increase of 2.0 percent, reaching €6.8 billion, with service revenue climbing 2.1 percent to €6.4 billion. This performance indicates a broad-based recovery and successful execution of the company’s strategic priorities. While domestic operations experienced a modest uptick, Brazil emerged as a primary growth engine, underscoring the effectiveness of TIM’s investment and market penetration strategies in its international subsidiary.
The report also highlights a substantial contribution from TIM’s digital transformation efforts, with accelerating demand for cloud, IT, cybersecurity, and artificial intelligence services. This segment is proving to be a critical driver of future revenue and profitability, positioning TIM as a key player in the evolving digital landscape. Furthermore, TIM’s commitment to monetizing its broadband infrastructure is yielding positive results, as evidenced by a rise in fixed broadband Average Revenue Per User (ARPU).
H1 2026: A Snapshot of Growth and Strategic Advancement
The first half of 2026 marked a pivotal period for TIM, as the company navigated a dynamic market environment with a clear strategic vision. The reported financial figures paint a picture of a company on an upward trajectory, with key performance indicators demonstrating sustained improvement.
TIM Group’s total revenue for the first six months of 2026 reached €6.8 billion, a 2.0 percent increase compared to the same period in the previous year. Service revenue, a crucial metric reflecting the core telecommunications and digital service offerings, grew by 2.1 percent to €6.4 billion. These figures represent a solid foundation for the remainder of the fiscal year and signal a positive return to growth.
Digging deeper into the geographical performance, TIM’s domestic operations, encompassing Italy, registered a more modest revenue increase of 0.2 percent to €4.6 billion, with service revenue up by 0.1 percent to €4.2 billion. This steady performance in its home market, despite its maturity, reflects the company’s ability to maintain its subscriber base and extract value from its existing infrastructure.
However, the standout performer in TIM’s portfolio was undoubtedly TIM Brasil. The Brazilian subsidiary demonstrated robust growth, with total revenue surging by 6.0 percent to €2.3 billion and service revenue advancing by an impressive 6.1 percent to €2.2 billion. This sustained outperformance in Brazil is a testament to TIM’s strategic focus on this high-growth market, its competitive positioning, and effective execution of its local business strategies.
Impact of MVNO Activities and Strategic Refinements
TIM also provided further clarity on the impact of Mobile Virtual Network Operator (MVNO) activities on its reported figures. Excluding the influence of these wholesale agreements, TIM stated that Group revenue growth would have been even more substantial, reaching 3.3 percent, with service revenue increasing by 3.5 percent. Similarly, on a pro forma basis, Domestic revenue and service revenue would have shown stronger growth of 2.0 percent and 2.1 percent, respectively.
This clarification is important as it highlights TIM’s deliberate strategy to manage its MVNO relationships, often involving the progressive phasing out of large wholesale customers between 2025 and 2026. While this has a short-term dilutive effect on headline revenue figures, it allows TIM to focus on its core, higher-margin retail operations and direct customer relationships.
TIM Consumer, which encompasses retail mobile and fixed broadband services for individuals, generated €2.9 billion in total revenue, a slight decrease of 2.7 percent, with service revenue down 2.9 percent to €2.7 billion. This decline is largely attributed to the aforementioned strategic reduction in MVNO business. However, the company emphasized that, excluding these MVNO activities, both total and service revenue for the Consumer segment would have remained stable, indicating underlying resilience.
Enhancing Customer Value: Fixed Broadband ARPU and Digital Services
A key highlight of TIM’s performance in H1 2026 is the improving monetisation of its fixed broadband business. The company reported a significant increase in its fixed broadband Average Revenue Per User (ARPU), which rose by 2.0 percent year-on-year to €33.0 per month. This metric is a critical indicator of TIM’s success in extracting greater value from its broadband customer base, likely driven by a combination of strategic repricing, upselling of higher-tier services, and the bundling of additional digital offerings.
In contrast, Mobile ARPU remained stable at €10.7 per month, with mobile churn also demonstrating stability. This suggests that TIM has achieved a balanced approach in its mobile segment, maintaining customer loyalty while navigating competitive pressures.
TIM’s proactive repricing program has been instrumental in its ARPU growth strategy. The initiative covered a substantial portion of its subscriber base, encompassing 3.3 million Consumer fixed lines and 2.1 million Consumer mobile lines. Furthermore, the SMB (Small and Medium-sized Business) segment also saw significant repricing efforts, with 0.3 million fixed lines and 0.4 million mobile lines included in the program. In total, these repricing initiatives covered an impressive 6.1 million fixed and mobile lines across both the Consumer and SMB businesses, demonstrating TIM’s commitment to optimizing revenue across its entire customer portfolio.
Beyond traditional connectivity, TIM is actively pursuing strategies to increase customer value through the expansion of its digital services. The TIMVISION streaming service continues to gain traction, with service revenue growing by a healthy 7.1 percent year-on-year. The recent launch of TIM Priority is another strategic move designed to further enhance ARPU by offering dedicated services and premium customer support, thereby fostering greater customer loyalty and increasing the perceived value of TIM’s offerings.
Enterprise Segment Drives Digital Transformation
The Enterprise segment emerged as a significant growth driver for TIM in H1 2026, fueled by the accelerating demand for digital transformation solutions. TIM Enterprise reported a robust increase in total revenue, up 5.6 percent to €1.7 billion, with service revenue climbing 5.7 percent to €1.5 billion.
This growth trajectory gained considerable momentum in the second quarter of 2026. During this period, Enterprise total revenue surged by 7.9 percent and service revenue increased by 7.1 percent year-on-year, indicating a strong acceleration in customer adoption of TIM’s advanced digital services.
Cloud services were the most significant contributor to this growth, with cloud revenue experiencing a remarkable surge of 18.1 percent year-on-year. This impressive performance underscores the increasing reliance of businesses on cloud infrastructure for their digital operations. Cloud services now represent a substantial 45 percent of TIM Enterprise’s service revenue, highlighting their growing importance in the company’s overall business mix and its strategic pivot towards digital infrastructure solutions.
The IT business also played a crucial role, now accounting for 67 percent of Enterprise service revenue, a notable increase from 65 percent in H1 2025. This 2 percentage point rise in a single year signifies TIM’s expanding capabilities and market share in the IT services domain.
Looking ahead, TIM Enterprise anticipates a significant increase in its order book, projecting it to exceed €4.5 billion in 2026, a substantial jump from €4.0 billion in 2025. This increase of over €500 million in potential future revenue underscores the strong demand for TIM’s enterprise solutions and its robust pipeline of future business.
TIM Brasil Continues its Winning Streak
TIM Brasil’s strong performance continued to be a major highlight of the Group’s results in the first six months of 2026. The Brazilian subsidiary consistently outperformed the Group’s domestic operations, demonstrating effective market strategies and strong execution.
Total revenue for TIM Brasil increased by 6.0 percent to €2.3 billion, with service revenue growing by 6.1 percent to €2.2 billion. These figures reflect the company’s successful penetration of the Brazilian market and its ability to capture growing demand for telecommunications and digital services.
Mobile monetization also saw notable improvements. In the second quarter of 2026, TIM Brasil’s mobile ARPU climbed by 5 percent year-on-year to 34.3 Brazilian Reais. This increase was supported by ongoing service revenue growth and the implementation of effective cost-efficiency measures, demonstrating a balanced approach to profitability and market competitiveness.
Financially, TIM Brasil generated €0.9 billion of EBITDA After Lease, a 5.5 percent increase, with growth accelerating to 6.6 percent in the second quarter. This strong EBITDA performance indicates robust operational efficiency and profitability. Furthermore, for the first six months of 2026, TIM Brasil’s EBITDA After Lease-CAPEX increased by 7.5 percent, signaling stronger cash generation capabilities alongside continued strategic investments in network expansion and development.
Strategic Investments in Infrastructure
TIM maintained a significant commitment to investing in its telecommunications and digital infrastructure throughout H1 2026. Group-wide investments totalled €0.9 billion, representing 12.6 percent of revenue. This substantial capital expenditure underscores TIM’s dedication to maintaining and enhancing its network capabilities, ensuring it remains at the forefront of technological advancements.
The investment intensity varied across its geographical operations. The Domestic business saw investment at 10.6 percent of revenue, reflecting a focus on optimizing existing infrastructure and rolling out new services. In contrast, Brazil exhibited a higher investment intensity of 16.6 percent of revenue. This highlights the greater capital expenditure required for TIM Brasil’s ambitious network expansion and development plans, aimed at capturing the vast growth potential in this dynamic market.
TIM Returns to Profitability in Q2 2026 Amidst Digital Transformation Momentum
A significant turning point in TIM’s financial performance was its return to profitability in the second quarter of 2026. The company reported a net profit of €88 million for Q2 2026, a dramatic improvement from a €8 million loss in Q2 2025 and a substantial rebound from the €292 million loss recorded in the first quarter of 2026.
This return to profitability is a clear indicator of the success of TIM’s strategic initiatives, particularly the accelerating momentum in its digital transformation efforts. The improved financial performance demonstrates the positive impact of increased revenue from digital services, enhanced operational efficiencies, and the strategic management of its business portfolio, including the recalibration of its MVNO activities.
The Q2 2026 profit signifies a robust recovery and positions TIM favorably for the remainder of the fiscal year. It reflects the company’s resilience and its ability to adapt to evolving market demands while delivering value to its shareholders. The strategic focus on high-growth areas like cloud, IT, and cybersecurity, coupled with the successful repricing and ARPU enhancement strategies, has clearly paid dividends, paving the way for sustained profitability and future growth.
