TIM reported improving financial and operational momentum in the first half of 2026, supported by growth in Brazil, rising fixed broadband ARPU in Italy and accelerating demand for cloud, IT, cybersecurity, digital and artificial intelligence services.
TIM Group revenue increased 2.0 percent to €6.8 billion, while service revenue rose 2.1 percent to €6.4 billion.
Domestic revenue edged up 0.2 percent to €4.6 billion, with service revenue increasing 0.1 percent to €4.2 billion. Brazil remained the stronger growth engine, with revenue rising 6.0 percent to €2.3 billion and service revenue advancing 6.1 percent to €2.2 billion.
Excluding the impact of MVNO activities, TIM said Group revenue growth would have reached 3.3 percent, while service revenue would have increased 3.5 percent. On the same basis, Domestic revenue and service revenue would have grown 2.0 percent and 2.1 percent, respectively.
TIM Fixed Broadband ARPU Rises 2 Percent to €33
TIM Consumer generated €2.9 billion in total revenue during H1 2026, down 2.7 percent, while service revenue decreased 2.9 percent to €2.7 billion. The decline largely reflected the expected reduction in the MVNO business as large wholesale customers were progressively phased between 2025 and 2026. Excluding MVNO activities, both total and service revenue would have been stable.
TIM’s fixed business showed improving monetisation in the second quarter. Fixed ARPU increased 2.0 percent year on year to €33.0 per month, an important indicator of TIM’s strategy to extract greater value from its broadband customer base.
Mobile ARPU remained stable at €10.7 per month, while mobile churn was also stable.
TIM’s repricing programme covered a significant portion of its subscriber base. The campaign involved 3.3 million Consumer fixed lines and 2.1 million Consumer mobile lines, together with 0.3 million fixed lines and 0.4 million mobile lines in the SMB segment.
This means repricing initiatives covered a combined 3.6 million fixed lines and 2.5 million mobile lines, or 6.1 million fixed and mobile lines across the Consumer and SMB businesses.
TIM is also looking to increase customer value through additional digital services. TIMVISION service revenue grew 7.1 percent year on year, while the launch of TIM Priority is designed to support further ARPU expansion through dedicated services and customer support.
TIM Enterprise Revenue Jumps 5.6% as Cloud Grows 18.1%
Digital transformation remained one of TIM’s strongest growth opportunities during H1 2026. TIM Enterprise reported total revenue of €1.7 billion, up 5.6 percent, while service revenue increased 5.7 percent to €1.5 billion.
Growth accelerated significantly during the second quarter, when Enterprise total revenue climbed 7.9 percent and service revenue increased 7.1 percent year on year.
Cloud was the biggest contributor to growth, with cloud revenue surging 18.1 percent year on year. Cloud now accounts for 45 percent of TIM Enterprise service revenue, demonstrating the increasing importance of digital infrastructure to the company’s business mix.
The IT business represented 67 percent of Enterprise service revenue, compared with 65 percent in H1 2025, a rise of 2 percentage points in one year.
TIM Enterprise also expects its order book to exceed €4.5 billion in 2026, compared with €4.0 billion in 2025, implying an increase of more than €500 million.
TIM Brasil Mobile ARPU Climbs 5% to 34.3 Reais
TIM Brasil continued to outperform the Group’s domestic operations during the first six months of 2026. Total revenue increased 6.0 percent to €2.3 billion, while service revenue grew 6.1 percent to €2.2 billion.
Mobile monetisation also improved. In Q2 2026, TIM Brasil’s mobile ARPU increased 5 percent year on year to 34.3 reais, supported by service revenue growth and cost-efficiency measures.
TIM Brasil generated €0.9 billion of EBITDA After Lease, up 5.5 percent. Growth accelerated to 6.6 percent during the second quarter.
For the first six months of 2026, TIM Brasil’s EBITDA After Lease-CAPEX increased 7.5 percent, indicating stronger cash generation alongside continued network investment.
TIM Invests €0.9 Billion as Capex Reaches 12.6% of Revenue
TIM maintained significant investment across its telecom and digital infrastructure during H1 2026. Group investments totalled €0.9 billion, equivalent to 12.6 percent of revenue.
Investment intensity reached 10.6 percent of revenue in the Domestic business and 16.6 percent in Brazil, highlighting the greater capital intensity of TIM Brasil’s network expansion and development.
TIM Returns to Q2 Profit as Digital Transformation Gains Momentum
TIM reported Q2 2026 net profit of €88 million, reversing a €8 million loss in Q2 2025 and improving sharply from the €292 million loss in Q1 2026.
FASNA SHABEER
