How Tim’s accounts go (and how they will go)

How Tim's accounts go (and how they will go)

Accounts, strategies and first moves for Tim's new board. Here are the latest news in the group led by CEO Luigi Gubitosi and the effects on the Stock Exchange

Accounts, strategies and first moves for Tim's new board.

Here are all the latest news, starting from the 2020 budget and the effects on the stock market.

BAG EFFECT FOR TIM

Opening with a bang for Tim in Piazza Affari after the 2020 accounts. The stock marks an increase of 5.37% to 0.4 euro, returning to the levels of August 2020.

THE NUMBERS OF TIM'S 2020 FINANCIAL STATEMENTS

Tim's 2020 budget closed with a profit of 7.2 billion, thanks above all to the recognition of tax benefits (also for the revaluation of patents), without which profits would have increased to 1.3 billion.

WHAT INFLUENCED TIM'S RESULT

The positive economic result is also due to the August decree which, by aligning tangible and intangible assets, such as patents, allowed Tim to account for 5.9 billion euros more.

HERE'S THE 2020 TIM REPORT

Revenues amounted to 15.8 billion and the operating margin to 7.1 billion. Cash generation improved, rising by 57% to 1.6 billion (after-lease value), helping to reduce debt to 23.3 billion (18.6 after lease). A dividend of 1 cent for ordinary shares and 2.75 for savings will be proposed to the shareholders' meeting.

THE NUMBERS

Returning to business for the first time since 2001, fixed retail lines grow, the total number of mobile lines stood at 30.2 million at the end of the year, up by about 5 thousand lines compared to the previous quarter, despite the partial lockdown in months of November and December. Revenues in 2020 amounted to 15.8 billion (-6.4%) with an improving trend that culminated in the fourth quarter with revenues of 4.1 billion euros (-2.1%).

THE DIVIDEND POLICY

The dividend policy was confirmed in the new «Beyond connectivity» plan which updates Tim's objectives to 2013 in continuity with the strategy set up by Gubitosi up to now.

THE STRATEGY FOR THE NEXT THREE YEARS

The strategy designed by the CEO Luigi Gubitosi for the next three years "rests on the industrial objectives achieved and on the solid financial foundations built thanks to the overcoming of the cash generation and debt reduction targets recorded in the previous two years" but also takes into account the effect Covid.

CONSUMER SECTOR IN TIM'S PLAN

In the Consumer sector, it will push on services such as TV, smart homes, security, process digitization and improvement of the customer experience. Tim Vision is the “heart” of this strategy.

BUSINESS SECTOR IN TIM'S PLAN

In Business, we want to consolidate as a reference for SMEs and large companies, developing clouds and data centers and finding new opportunities in the IoT, cybersecurity and international connectivity services, both geographically and in terms of service portfolio.

WHOLESALE CHAPTER IN TIM'S PLAN

In the Wholesale sector, in addition to protecting its market share, it looks at the opportunities deriving from non-regulated services, such as data centers. Last but not least, the commitment to make Tim a sustainable and inclusive group is further strengthened.

OBJECTIVES AND NUMBERS

The development of Tim Vision will be central to the consumer market, together with the development of convergent services (TV, smart home, security) on fixed and mobile networks. Revenues from services are expected to be stable or slightly growing this year and slightly increasing in 2022 and 2023, debt will drop to 16.5 billion at the end of the year (after lease). Pending the developments on the Open Fiber front, the plan for FiberCop provides for the achievement of 76% of real estate units with fiber in the gray and black areas by 2025 and 93% of households by 2023 (Fttc), to which are added coverage with mobile, Fwa and satellite.

WHAT THE SUN 24 ORE WRITES ON THE INDUSTRIAL PLAN

The business plan of Tim, writes Il Sole 24 Ore , "is based in particular on the initiatives developed under the Gubitosi management: Noovle (cloud and data center), FiberCop (the companyization of the secondary network to be modernized in optical fiber) and Timvision (the digital content distribution platform) ". It is a plan "that promises to stabilize margins, revenues and reduce debts", underlines Repubblica: "The debt this year will drop to 16.5 billion thanks to the collection from the Kkr fund of the proceeds from the sale of 37.5% of Fibercop, the company in which the secondary network was spun off ".

THE NEXT TIM BOARD

Leading this path will still be CEO Luigi Gubitosi, whom the board of directors has reconfirmed in the list of candidates that it will present at the assembly at the end of March and with him some new important names, among which Luca De Meo stands out. The board presented its list of 10 candidates, based on the appointment of a Board composed of 15 members.

The squad includes the current president Salvatore Rossi, the CEO Luigi Gubitosi and the representatives of the relevant shareholders, Vivendi with Arnaud De Puyfontaine and Cdp with Giovanni Gorno Tempini. Paola Bonomo, Franck Cadoret, Marella Moretti confirmed and new entries instead of De Meo, Cristiana Falcone and Ilaria Romagnoli.

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TIM'S PRESS RELEASE ON THE 2020 FINANCIAL STATEMENTS


This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/come-vanno-e-come-andranno-i-conti-di-tim/ on Wed, 24 Feb 2021 08:18:06 +0000.