New Risk • 3h
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of German stocks, typically moving 26% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.1x net interest cover). Share price has been highly volatile over the past 3 months (26% average weekly change). Minor Risk Profit margins are more than 30% lower than last year (1.4% net profit margin). Duyuru • May 21
Telecom Italia S.p.A.(BIT:TITR) dropped from FTSE All-World Index (USD) Telecom Italia S.p.A.(BIT:TITR) dropped from FTSE All-World Index (USD) Duyuru • Mar 23
Poste Italiane S.p.A. (BIT:PST) proposed to acquire remaining 72.68% stake in Telecom Italia S.p.A. (BIT:TIT) for €9.9 billion. Poste Italiane S.p.A. (BIT:PST) proposed to acquire remaining 72.68% stake in Telecom Italia S.p.A. (BIT:TIT) for €9.9 billion on March 22, 2026. The consideration consists of common equity of Poste Italiane S.p.A. at a ratio of 0.0218 per common equity of Telecom Italia S.p.A. A cash consideration of €3.55 billion valued at €0.167 per share will be paid by Poste Italiane S.p.A. As part of consideration, €3.55 billion is paid towards common equity of Telecom Italia S.p.A. Upon completion, Poste Italiane S.p.A. will own 100% stake in Telecom Italia S.p.A. Poste Italiane anticipates €0.7 billion in pre-tax synergies from its acquisition of Telecom Italia S.p.A. with €0.5 billion in cost efficiencies and €0.2 billion in revenue synergies. Cost synergies are expected within two years post-offer completion, and revenue synergies within three years. The acquisition is projected to positively impact Poste Poste Italiane S.p.A. earnings per share from 2027, while maintaining a neutral effect on dividends for 2026. Additionally, Telecom Italia S.p.A. deferred tax assets of €982 million are expected to become recoverable within a defined timeframe. The transaction is subject to approval of offer by acquirer board. The Offer is subject to the obtainment of certain regulatory approvals. The transaction is expected to close by the end of 2026. Board Change • Aug 18
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Independent Chairwoman Alberta Figari was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Duyuru • Feb 17
Poste Italiane S.p.A. (BIT:PST) agreed to acquire 9.81% stake in Telecom Italia S.p.A. (BIT:TIT) from Cassa Depositi e Prestiti S.p.A. Poste Italiane S.p.A. (BIT:PST) agreed to acquire 9.81% stake in Telecom Italia S.p.A. (BIT:TIT) from Cassa Depositi e Prestiti S.p.A. on February 15, 2025. The consideration for the purchase of Tim's shares will be paid (i) partly through the proceeds from
the sale of Poste Italiane’s shareholding in Nexi to Cassa Depositi e Prestiti and (ii) partly through available cash. At the same time, Cassa Depositi e Prestiti S.p.A. agreed to acquire 3.78% stake in Nexi S.p.A. from Poste Italiane S.p.A.
The transaction has been approved by the board of directors of Poste Italiane S.p.A. Duyuru • Jan 16
Vivendi Intends to Appeal the Milan Court’s Decision About the Sale of TIM’s Fixed Network Vivendi takes note of the Milan court’s decision to reject its complaint against the decision of TIM’s Board of Directors concerning the sale of its fixed network. In a decision issued, the court considered this request inadmissible due to a lack of standing (notably because Vivendi would not have declared its voting intention in the event of a Shareholders' meeting being convened), and did not address the merits of the case. As a reminder, on December 15, 2023, Vivendi complaint against TIM before the Milan court, seeking the annulment of the resolution adopted by TIM’s Board of Directors November 5, 2023, approving the sale of its fixed network without submitting it to the Shareholders' meeting (nor to the related party transaction procedure), and requesting the declaration that the transaction agreement entered into on November 6, 2023, is unenforceable. Despite the dismissal of its request on purely formal grounds by the Milan court, Vivendi continues to believe that the sale of TIM’s network should have been subject to a vote at a Shareholders Meeting as it is an essential asset of the company which would change the corporate purpose of TIM. For this reason, Vivendi intends to appeal this decision. Duyuru • Dec 17
CVC Reportedly in Talks to Buy Vivendi's Stake in Telecom Italia CVC Capital Partners plc (ENXTAM:CVC) is exploring a potential purchase of Vivendi SE (ENXTPA:VIV)’s stake in Telecom Italia S.p.A. (BIT:TIT), people with knowledge of the matter said, which could pave the way for a takeover of Italy’s biggest telecommunications company. The private equity firm has been holding preliminary talks with Vivendi about buying its 24% holding in the Italian carrier’s common shares, the people said, asking not to be identified because the information is private. The stake is currently valued at about €1 billion ($1.05 billion), according to data compiled by Bloomberg. Breakeven Date Change • Oct 23
Forecast breakeven date moved forward to 2025 The 6 analysts covering Telecom Italia previously expected the company to break even in 2026. New consensus forecast suggests losses will reduce by 87% to 2024. The company is expected to make a profit of €7.64m in 2025. Average annual earnings growth of 120% is required to achieve expected profit on schedule. Duyuru • Sep 30
Telecom Italia S.p.A. to Report Q2, 2025 Results on Aug 05, 2025 Telecom Italia S.p.A. announced that they will report Q2, 2025 results on Aug 05, 2025 Duyuru • Aug 13
A consortium lead by Ardian reached an agreement to acquire 10% stake in Infrastrutture Wireless Italiane S.p.A. (BIT:INW) from Telecom Italia S.p.A. (BIT:TIT) for approximately €250 million. A consortium lead by Ardian reached an agreement to acquire 10% stake in Infrastrutture Wireless Italiane S.p.A. (BIT:INW) from Telecom Italia S.p.A. (BIT:TIT) for approximately €250 million on August 13, 2024. The agreement is based on a valuation of INWIT share price of €10.43 and corresponds to proceeds to TIM, not included in the 2024 guidance, of approximately €250 million, taking into account the existing net debt. Terms and conditions of the transaction are in line with the practice of public M&A deals of comparable nature, including certain customary protections applicable after signing. The closing of the transaction is subject to certain conditions and is expected to take place in the 4th quarter of 2024. New Risk • Aug 11
New minor risk - Profitability The company is currently unprofitable and not forecast to become profitable over the next 3 years. Trailing 12-month net loss: €1.2b Forecast net loss in 3 years: €41m This is considered a minor risk. Companies that are not profitable are more likely to be burning through cash and less likely to be well established. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. Without profits, the company is under pressure to grow significantly while potentially having to reduce costs and possibly needing to take on debt or raise capital to remain afloat. This is currently the only risk that has been identified for the company. Breakeven Date Change • Aug 09
No longer forecast to breakeven The 3 analysts covering Telecom Italia no longer expect the company to break even during the foreseeable future. The company was expected to make a profit of €142.0m in 2026. New consensus forecast suggests the company will make a loss of €30.3m in 2026. Breakeven Date Change • Jul 25
Forecast to breakeven in 2026 The analyst covering Telecom Italia expects the company to break even for the first time. New forecast suggests losses will reduce by 68% per year to 2025. The company is expected to make a profit of €142.0m in 2026. Average annual earnings growth of 103% is required to achieve expected profit on schedule. Duyuru • Jun 26
Telecom Italia S.p.A. to Report Q2, 2024 Results on Sep 26, 2024 Telecom Italia S.p.A. announced that they will report Q2, 2024 results on Sep 26, 2024 Reported Earnings • May 30
First quarter 2024 earnings released First quarter 2024 results: €0.019 loss per share. Revenue: €3.96b (up 3.0% from 1Q 2023). Net loss: €400.0m (loss narrowed 42% from 1Q 2023). Revenue is forecast to stay flat during the next 3 years compared to a 1.5% growth forecast for the Telecom industry in Germany. Duyuru • Apr 17
Telecom Italia Announces Board Changes Telecom Italia (TIM) announced that Alessandro Pansa has been appointed chairman of its international services arm Sparkle, taking over from Elisabetta Romano. Duyuru • Mar 21
Telecom Italia Reportedly May Sell Assets Telecom Italia S.p.A. (BIT:TIT), may sell assets worth about EUR 1 billion in a bid to further reduce its debt and potentially remunerate investors, a source familiar with the matter said. The phone carrier may dispose of its remaining stake in mobile tower operator Inwit, valued at about EUR 300 million, the source said, asking not to be named discussing private deliberations. That disposal would come in addition to the planned sale of the carrier's Telecom Italia Sparkle subsea unit, expected to come in at EUR 600 million - EUR 800 million. A deal for the Inwit holding is not imminent and could materialise as late as in 2026, the source added. A spokesperson for Telecom Italia declined to comment. The company said it will be able to meet its multi-year guidance even if its debt rises this year following the closure of a deal to sell off its fixed-line network - a move drawn up by the one-time monopoly in a bid to bring the debt under control. The newest disposal would help the former phone monopoly raise cash, which could then be used either to further cut debt or to remunerate shareholders. Telecom Italia's network sale - to US-based KKR & Co - was signed late last year, marking the first time a European phone carrier has opted to sell off its fixed-line grid. KKR last week confirmed that the deal is set to close in the summer. "Telecom Italia is expected to return to generating cash at group level, as well as in its domestic Italian market, thanks to our new three-year business plan," chief executive officer Pietro Labriola told Italian daily Corriere della Sera in an interview over the weekend. The eventual sale of Sparkle will also help accelerate plans to possibly remunerate shareholders, the CEO said. Reported Earnings • Mar 07
Full year 2023 earnings released Full year 2023 results: Revenue: €16.5b (up 4.5% from FY 2022). Net loss: €1.44b (loss narrowed 51% from FY 2022). Revenue is expected to decline by 1.0% p.a. on average during the next 3 years, while revenues in the Telecom industry in Germany are expected to grow by 1.6%. Breakeven Date Change • Mar 07
No longer forecast to breakeven The 11 analysts covering Telecom Italia no longer expect the company to break even during the foreseeable future. The company was expected to make a profit of €163.0m in 2026. New consensus forecast suggests the company will make a loss of €440.2m in 2026. New Risk • Feb 25
New minor risk - Profitability The company is currently unprofitable and not forecast to become profitable over the next 3 years. Trailing 12-month net loss: €1.3b Forecast net loss in 3 years: €129m This is considered a minor risk. Companies that are not profitable are more likely to be burning through cash and less likely to be well established. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. Without profits, the company is under pressure to grow significantly while potentially having to reduce costs and possibly needing to take on debt or raise capital to remain afloat. This is currently the only risk that has been identified for the company. Duyuru • Dec 15
Vivendi Reportedly to Consider Options for Stake in Telecom Italia Vivendi SE (ENXTPA:VIV) is considering options for its €1.3 billion ($1.4 billion) stake in former phone monopoly Telecom Italia S.p.A. (BIT:TIT) as billionaire Vincent Bolloré explores a reorganization of the French conglomerate, people familiar with the matter said. The French company has spoken with advisers as it evaluates potential options including a sale of the 24% holding, according to the people, who asked not to be identified because the matter is confidential. Representatives for Vivendi and Telecom Italia declined to comment. A sale could be part of a broader overhaul at Vivendi, which said on December 13, 2023 it’s considering splitting into three parts — pay-TV business Canal+; advertising and communications branch Havas; and a holding company with listed and unlisted stakes in culture, media and entertainment. The announcement made no mention of Telecom Italia. For the Italian company, an exit by Vivendi could smooth the way for the €22 billion sale of its fixed-line phone network to KKR & Co. Inc. (NYSE:KKR). Vivendi, Telecom Italia’s biggest shareholder, wants to block the deal, and is finalizing legal action to halt it as soon as this week. Vivendi is set to contend that the deal doesn’t comply with Italian corporate law. Telecom Italia shares rose 5.6% to 0.263 cents at 4:46 p.m. in Milan, while Vivendi climbed 11% to €9.93, bolstered by news of the potential broader breakup. Duyuru • Dec 07
KKR Requests Due Diligence Extension for Telecom Italia's Sparkle Unit KKR & Co. Inc. (NYSE:KKR) has requested that Telecom Italia S.p.A. (BIT:TIT), or TIM, should extend the due diligence period in relation to the Italian telecom group's subsea cable arm Sparkle until the end of January. The extension will allow the suitor to collect the necessary information before it can submit a final offer for the unit, TIM said on December 5, 2023. The Italian firm added that its board of directors will examine the request at their meeting on December 14, 2023. In November, TIM extended the deadline for receiving a higher offer for Sparkle until December 5, 2023. It previously turned down KKR's non-binding offer for the unit describing it as "unsatisfactory". TIM earlier agreed to sell its fixed network to KKR after approving its binding offer, valuing the business at EUR 18.8 billion (USD 20.34 billion) in enterprise terms. Duyuru • Dec 01
KKR Reportedly Working on Bid for Telecom Italia's Submarine Cable Unit Kohlberg Kravis Roberts & Co. L.P. (NYSE:KKR) is working to present a new offer for Telecom Italia S.p.A. (BIT:TIT)’s submarine cable unit Sparkle as the U.S fund presses ahead with due diligence on the assets, three sources familiar with the matter said on November 30, 2023. The sale of Sparkle, the international wholesale cable unit of Telecom Italia (TIM) whose network extends over 600,000 km, is part of Chief Executive Officer Pietro Labriola's plan to part ways with the former phone monopoly's fixed network assets to cut its debt pile. At a meeting last week, TIM and KKR advisers discussed a valuation of around EUR 750 million – EUR 800 million, up from a previous non-binding offer of around EUR 600 million ($654 million), deemed as to low by TIM, according to the sources. The terms of any offer for Sparkle, including the valuation, need to be discussed with the Italian Treasury, which has teamed up with KKR to co-invest in Telecom Italia's fixed network assets, seen as strategic by the government, the sources said. KKR and TIM declined to comment. KKR has until December 5 to complete ongoing due diligence on Sparkle but the deadline could be extended, a fourth person briefed about the matter said. At this stage, a review of a potential offer for Sparkle at an ordinary TIM board meeting scheduled on December 14 is unlikely, the person added. TIM's agreed in November to sell its domestic fixed line grid to KKR in a deal worth up to EUR 22 billion, when including debts and some potential future payments. Reported Earnings • Nov 10
Third quarter 2023 earnings released Third quarter 2023 results: €0.015 loss per share. Revenue: €4.14b (up 4.3% from 3Q 2022). Net loss: €311.0m (loss narrowed 86% from 3Q 2022). Revenue is forecast to stay flat during the next 3 years compared to a 2.3% growth forecast for the Telecom industry in Germany. Duyuru • Nov 06
Vivendi SE Opposes KKR Bid for Telecom Italia S.p.A. Fixed Line Network. On November 5, 2023, Telecom Italia S.p.A. announced that, it approved an offer by Kohlberg Kravis Roberts & Co. L.P.(KKR) for its fixed-line network. Further, the Company stated that its board had approved the deal, whose value could reach 22 billion euros, and which would reduce the debt by around 14 billion euros. As Vivendi SE, has opposed selling the network and valued it at 31 billion euros, saying KKR's previous bids were far too low. Further, Vivendi SE said it would use all legal means at its disposal to contest the Company’s illegal decision. it had previously threatened to launch legal action if the KKR offer was approved without being submitted to an extraordinary general assembly of shareholders, where Vivendi would carry considerable weight. Duyuru • Oct 31
Telecom Italia Sticks to Network-Asset Sale Plan After Investor Pushback Telecom Italia S.p.A. (BIT:TIT) said preparatory activities for its decisions on Kohlberg Kravis Roberts & Co. L.P.'s (NYSE:KKR) offers for its network assets are continuing after investors pushed back against the plan and called for the removal of Chief Executive Pietro Labriola. The Italian telecommunications company confirmed over the weekend that it received communication from Merlyn Advisors and RN Capital Partner and that the document will be submitted to its board of directors, which will meet on Nov. 3, 2023. Merlyn Advisors and RN Capital Partner said in an open letter published October 27, 2023 that Telecom Italia should retain the whole network--including its Sparkle and FiberCop businesses--, as well as restructure, carve out and sell its consumer arm and sell its Brazilian business among other proposals. They also encouraged Telecom Italia's board to remove Labriola. Merlyn Partners, a Luxembourg-based fund managed by Merlyn Advisors, represents a group of shareholders of Telecom Italia owning shares of the company below 3%, according to the letter. In response, Telecom Italia said the project to sell its so-called NetCo business is in line with a plan unanimously approved by its board. The company said its board will discuss offers submitted by the private-equity group earlier this month at meetings scheduled for Nov. 3, 2023 and 5, 2023. Duyuru • Oct 18
KKR Makes Binding Bid for Telecom Italia's Fixed Network Kohlberg Kravis Roberts & Co. L.P. (NYSE:KKR) has made a binding offer for the fixed network of Telecom Italia S.p.A. (BIT:TIT), or TIM, which excludes the Italian firm's subsea cable arm Sparkle. The Italian firm did not disclose financial details in its statement on October 16, 2023, but according to sources cited by Reuters the bid values TIM's fixed network including debt, at more than EUR 20 billion (USD 21.08 billion). The offer will run until November 8 and could be extended until December 20. Telecom Italia's board of directors will consider it "without delay", the group said. KKR has also submitted a separate non-binding offer for TIM's stake in Sparkle. It expects to file a firm bid within four to eight weeks after carrying out due diligence. TIM unveiled in early March 2022 a plan to split its business into two separate companies as part of its 2022-2024 turnaround strategy. Reported Earnings • Aug 06
Second quarter 2023 earnings released: €0.006 loss per share (vs €0.013 loss in 2Q 2022) Second quarter 2023 results: €0.006 loss per share (improved from €0.013 loss in 2Q 2022). Revenue: €4.00b (up 2.2% from 2Q 2022). Net loss: €124.0m (loss narrowed 56% from 2Q 2022). Revenue is forecast to stay flat during the next 3 years compared to a 2.7% growth forecast for the Telecom industry in Germany. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 51 percentage points per year, which is a significant difference in performance. New Risk • Jul 23
New minor risk - Profitability The company is currently unprofitable and not forecast to become profitable over the next 3 years. Trailing 12-month net loss: €3.4b Forecast net loss in 3 years: €30m This is considered a minor risk. Companies that are not profitable are more likely to be burning through cash and less likely to be well established. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. Without profits, the company is under pressure to grow significantly while potentially having to reduce costs and possibly needing to take on debt or raise capital to remain afloat. Currently, the following risks have been identified for the company: Minor Risks Currently unprofitable and not forecast to become profitable over next 3 years (€30m net loss in 3 years). Share price has been volatile over the past 3 months (7.8% average weekly change). Reported Earnings • May 19
First quarter 2023 earnings released First quarter 2023 results: Revenue: €3.88b (up 6.6% from 1Q 2022). Net loss: €689.0m (loss widened 238% from 1Q 2022). Revenue is forecast to stay flat during the next 3 years compared to a 3.0% growth forecast for the Telecom industry in Germany. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 75 percentage points per year, which is a significant difference in performance. Reported Earnings • Mar 19
Full year 2022 earnings released Full year 2022 results: Revenue: €16.0b (up 4.5% from FY 2021). Net loss: €2.93b (loss narrowed 66% from FY 2021). Revenue is forecast to stay flat during the next 3 years compared to a 1.9% growth forecast for the Telecom industry in Germany. Duyuru • Feb 03
KKR & Co. Inc. (NYSE:KKR) made a non-binding offer to acquire an unknown majority stake in Italian fixed line network business from Telecom Italia S.p.A. (BIT:TIT). KKR & Co. Inc. (NYSE:KKR) made a non-binding offer to acquire an unknown majority stake in Italian fixed line network business from Telecom Italia S.p.A. (BIT:TIT) on February 2, 2023. The terms of the deal were undisclosed, however as per rumors deal value is €20 million. The transaction is subject to Board approval of Telecom Italia S.p.A. Duyuru • Nov 16
Telecom Italia S.p.A. to Report Fiscal Year 2022 Results on Mar 15, 2023 Telecom Italia S.p.A. announced that they will report fiscal year 2022 results on Mar 15, 2023 
