TIM sees additional growth opportunities in areas including defense, mission-critical services, AI-enabled products and operations, next-generation connectivity applications, and data centers
In sum – what to know:
Poste transaction – TIM’s board explained approval of Poste Italiane’s takeover proposal could accelerate execution while preserving TIM’s strategic direction.
INWIT strategy – TIM confirmed its standalone business plan assumes an exit from Inwit, with migration beginning from 2030, subject to ongoing legal proceedings.
Guidance maintained – TIM reaffirmed its 2026 and medium-term financial targets while highlighting AI, data centers, and digital infrastructure as future growth priorities.
Telecom Italia reaffirmed its 2026 guidance during its second-quarter earnings call, while management also outlined the reasoning behind the board’s July 18 approval of state-backed Poste Italiane’s takeover proposal.
Executives said the transaction could strengthen TIM’s industrial positioning and accelerate execution of its strategy, while emphasizing that the company’s standalone business plan—and its underlying assumptions, including a planned exit from Inwit beginning in 2030—remain unchanged.
The telco’s chief executive officer Pietro Labriola described the second quarter as one of “execution,” saying the company continued to deliver on its operational, financial, and strategic commitments while maintaining confidence in its outlook for the remainder of the year. Management confirmed that second-quarter performance was in line with expectations and reiterated full-year guidance.
Discussing the Poste transaction, Labriola said the board’s approval remains subject to the completion of the relevant conditions but represents “another important step” toward creating sustainable long-term value while strengthening TIM’s industrial positioning. TIM’s shareholders still need to accept Poste’s offer.
The deal will see TIM fall back into state ownership once again after the Italian carrier became privatized in 1997. Poste is already TIM’s largest shareholder with just over 27% of the carrier’s shares.
During the call, the telco’s management explained that the board’s positive recommendation on the bid sumitted by Poste was based on two factors: the financial fairness of the offer, supported by independent advisers, and the industrial rationale of combining TIM’s assets and capabilities with Poste’s digital platform. According to Labriola, the combination could create meaningful strategic opportunities while reducing execution risk associated with delivering TIM’s long-term objectives.
TIM’s management also said that the board’s assessment was based on TIM’s standalone business plan, which already supports the company’s financial guidance. According to Labriola, the Poste transaction would not change TIM’s strategic direction but could accelerate execution of the industrial plan while reducing execution risk.
The company also reiterated the key assumptions underpinning its long-term plan, including its future relationship with tower company Inwit. Labriola said the standalone business plan assumes TIM’s exit from Inwit, with migration beginning from 2030, subject to the outcome of ongoing legal proceedings. The plan also assumes a progressive migration toward TIM and Fastweb’s joint tower venture, together with other operators.
TIM reaffirmed its financial outlook for 2026, targeting group revenue growth of 2-3%, EBITDA after lease growth of 5-6%, capex intensity below 14% of revenues and approximately €1.8 billion ($2.07 billion) in equity free cash flow after lease.
Management also reiterated its medium-term targets for 2027, including approximately 3% revenue CAGR between 2024 and 2027, EBITDA after lease CAGR of 6-7%, and capex intensity declining to around 13% of revenues.
Second-quarter capital expenditure totaled approximately €400 million, representing 12.7% of revenues. TIM’s chief financial officer Piergiorgio Peluso said domestic investments accelerated in selected infrastructure areas, including mobile networks, IP backbone, and data centers, while remaining consistent with the company’s disciplined investment framework.
Looking beyond 2026, Labriola said TIM sees additional growth opportunities in areas including defense, mission-critical services, AI-enabled products and operations, next-generation connectivity applications, and data centers, which he described as strategic components of Italy’s evolving digital infrastructure.
