TIM reveals growth in Capex in first quarter

TIM has revealed the capital expenditure (Capex) of the telecom operator in Italy and Brazil during the first quarter of 2021.
TIM Capex Q1 2021
TIM said the Domestic Business Unit posted Capex for 490 million euros, +82 million euros in organic terms compared to the first quarter 2020, mainly due to the increase for the development of the FTTC/FTTH networks.

TIM said the Brazil Business Unit posted capital expenditures in the first quarter of 2021 of 201 million euros (185 million euros for the first quarter 2020). Excluding the impact of changes in exchange rates (-48 million euros), capex grew by 64 million euros, mainly to strengthen the mobile UltraBroadBand infrastructure and the development of the fixed broadband business of TIM Live.

The total number of TIM mobile lines was 30.2 million, up on the previous quarter by 52 thousand lines.

In the fixed line segment, the migration of the customer base towards ultrabroadband is accelerating, boosted by an increasingly rich and convergence-oriented portfolio of offering, support for demand through public vouchers and the speed-up of fiber optic coverage, in particular in white areas, which resulted in ultrabroadband coverage for over 92 percent of Italian households with a landline.

TIM said 1,518 cabinets were implemented taking the total number of municipalities that have benefited from fiber coverage interventions since March 2020 to more than 3,800.

TIM said 424 thousand new retail and wholesale ultrabroadband lines were activated (retail +119 percent), reaching 9.1 million units – up 23 percent.

TIM said Group revenues in the quarter stood at 3.8 billion euros, in line with Q1 2020. Revenues from domestic fixed telephony increased by 3 percent.

Group revenues from services were 3.4 billion euros, with year on year performance (–2.5 percent) improving compared to the drop recorded in 2020 (–5.6 percent).

In the Business segment, revenue growth associated with innovative services (ICT, Cloud, IT solutions) accelerated (+30 percent), also thanks to the positive contribution of the partnership with Google Cloud.

In Domestic Wholesale, fixed service revenues in Q1 2021 increased 8.7 percent, benefiting from the continuous migration of customers to ultrabroadband.

In Brazil, service revenues rose 3.3 percent, driven by strong commercial performance with a positive effect on the customer base trend and average prices. The efficiencies achieved helped to grow the organic EBITDA by 4.8 percent (+3.9 percent on an after lease basis).

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