TIM S.A.

Management said quarterly revenue approached BRL4 billion. Service revenue increased around 6% in the first half, EBITDA grew around 7% in the first half, and EBITDA after lease increased close to 8%. Net income surpassed BRL1 billion in the quarter, increasing around 6% year over year. Operating cash flow exceeded BRL3 billion in the first half, growing at a double-digit pace. For forward guidance, management said there should be no material impact from the I-Systems acquisition on CapEx, as the company expects to absorb it within its existing CapEx profile while continuing to support mobile investment. They also said they expect bad debt to gradually stabilize and international roaming costs to normalize in coming quarters, with costs typically heavier in the first half and roaming revenue heavier in the second half.

Alberto Griselli framed the quarter as one of solid execution across revenue, profitability, and cash generation, emphasizing that TIM is becoming more resilient as it diversifies beyond mobile. He highlighted mobile as the foundation, but pointed to Ultrafibra, B2B, streaming, financial services, and convergent offers as increasingly important growth vectors. His tone was constructive and strategic, stressing disciplined growth, broader revenue drivers, and a sustainable path to shareholder value.

Andrea Viegas focused on balance sheet, capex, and shareholder returns. She said I-Systems does not require an increase in CapEx beyond the company’s existing guidance, and TIM plans to monetize the asset base rather than spend more to support it. She also said the company has enough cash to support dividends and I-Systems-related CapEx, even after the increase in debt tied to the transaction, noting an announced capital increase at I-Systems to address that debt.

Analysts pressed on whether TIM’s mobile slowdown reflected a deliberate value-over-volume strategy or competitive pressure, and management said the slowdown was expected after price increases and softer customer-base dynamics. They acknowledged a more promotional market, especially due to below-the-line offers, but said TIM is responding with TIM Fit, TIM Play, PicPay, and Ultra Combo. On broadband and M&A, management said I-Systems is an accelerator for broadband economics and that they are not rushing into deals, though they continue to profile targets and see favorable conditions ahead as inflation and rates improve.