Brazilian telecom operator TIM reported revenue of R$6.806 billion in Q1 2026, representing a 6.5 percent year-on-year increase, driven by strong postpaid mobile services, expanding 5G coverage, and growth in fiber broadband business TIM Ultrafibra.
Mobile Service Revenue (MSR) increased 5.6 percent during the quarter, supported by momentum in the postpaid segment and higher customer monetization. TIM’s mobile ARPU rose 5.8 percent to R$33.7, reflecting the operator’s strategy of improving customer value through premium offers, enhanced network quality, and digital services.
Postpaid remained the company’s primary growth engine, with revenue rising 7.5 percent. TIM reported postpaid ARPU excluding M2M at R$55.1, up 1.6 percent. The company attributed the performance to tariff adjustments, customer migration toward higher-value plans, and a 7.6 percent increase in the customer base, while maintaining controlled churn levels.
The prepaid business continued its stabilization trend despite seasonal weakness during Carnival and ongoing migration of users to Controle plans. Prepaid revenue declined 6.5 percent, while prepaid ARPU increased 1.6 percent to R$14.1.
TIM delivered strong growth in fixed broadband services. Fixed Service Revenue (FSR) surged 22.8 percent year-on-year, supported by recovery in TIM Ultrafibra operations and the consolidation of revenue from V8 Consulting S.A. (V8.Tech), following the completion of the acquisition.
TIM Ultrafibra revenue increased 11.4 percent in Q1 2026. FTTH ARPU rose 3.2 percent to R$93.8. The company added 36,000 FTTH subscribers during the quarter, taking the total broadband customer base to 880,000 users, almost entirely based on FTTH infrastructure.
TIM’s broadband business delivered strong growth in Q1 2026, driven by accelerating migration to FTTH services and higher-value customer plans. The broadband client base increased from 790,000 in Q1 2025 to 880,000 in Q1 2026, representing 11.4 percent growth. Nearly the entire broadband network, 99.5 percent, now operates on FTTH infrastructure, while 92 percent of customers use plans offering speeds of 400 Mbps or higher.
TIM Ultrafibra revenue rose for the second consecutive quarter, increasing 11.4 percent year-on-year from R$218 million to R$243 million. FTTH ARPU reached R$93.8 per month, up 3.2 percent year-on-year. TIM said operational improvements in broadband services, customer experience, and sales channels are supporting sustainable revenue recovery and premium broadband adoption.
The telecom operator said broadband customer quality also improved significantly, with 92 percent of subscribers already using plans offering speeds of 400 Mbps or higher. TIM attributed the growth to improvements in broadband services, customer experience, and sales channels.
Operating costs and expenses totaled R$3.519 billion in Q1 2026, up 6.3, primarily due to higher network and interconnection costs as well as incremental expenses related to V8.Tech integration.
TIM’s capital expenditure reached R$1.354 billion during the first quarter, increasing 1.1 percent. Investments were mainly directed toward expanding network infrastructure and accelerating 5G deployment across Brazil.
By the end of March 2026, TIM had expanded 5G coverage to 1,094 cities, reinforcing its position in Brazil’s rapidly growing 5G market and supporting demand for higher-value mobile and broadband services.
BABURAJAN KIZHAKEDATH
