Telecom Italia revenue rises 6.8% in third quarter, core earnings meet expectations
Key Facts
Reuters reported that Telecom Italia’s core earnings met expectations in the third quarter of 2026, alongside 6.8% year-on-year revenue growth to 3.61 billion euros. Revenue was 3.38 billion euros in the same period a year earlier, while the company recorded organic growth of 4.3% in the quarter. The figures present a picture of expanding sales and improved operating profitability after leases alongside a negative net result for shareholders in the quarter. Operating profit after leases increased, while net profit attributable to owners of the parent company recorded a limited loss after a profit in the comparable period. For the first nine months, results showed organic growth in revenue and operating profit after leases, with non-recurring charges affecting reported earnings.
Operating profit after leases rose 4.3% in the third quarter to 1.05 billion euros, according to figures reported by Alliance News. But net result attributable to owners of the parent company turned to a loss of 1 million euros, compared with a profit of 23 million euros a year earlier. The divergence between revenue and operating profit growth and the net result highlights the different measures: the former reflect business performance, while the latter shows the period’s outcome after other items. The available figures do not provide a breakdown identifying the reasons for the shift in the quarterly net result, so the company does not attribute the loss here to any specific item. For the nine-month period, the company reported net non-recurring charges of about 300 million euros, mostly related to employees and other operating expenses, as part of its explanation for the decline in reported earnings.
In the first nine months of 2026, revenue reached 10.44 billion euros, up 4.7% from 9.98 billion euros in the same period of 2025, while organic growth was 2.8%. Operating profit after leases rose organically 2.3% to 2.84 billion euros from 2.77 billion euros. On a reported basis, earnings before interest, taxes, depreciation and amortization followed a different path, falling 1.5% to 3.05 billion euros from 3.10 billion euros. Coverage noted that about 300 million euros of net non-recurring charges, mostly related to employees and other operating expenses, affected the reported figure. The comparison shows that organic growth in revenue and profit after leases did not prevent a decline in the reported earnings measure over the period, with the impact of those costs still reflected in the results.
TIM attributed part of the performance in its domestic market to the expected contraction in business with mobile virtual network operators, amid the rotation of major wholesale customers. The company said excluding this factor would have lifted organic operating profit after leases growth over the nine months to 6% at group level and 5.6% in the domestic market. This comparison puts pressure from the wholesale business in context when assessing domestic performance, without erasing the growth recorded in other activities. In Brazil, the unit recorded revenue of 3.49 billion euros, with organic growth of 5.8% in the first nine months. The unit’s operating profit after leases was 1.35 billion euros, up 6.2%, showing growth in revenue and operating profitability there over the period.
TIM confirmed its 2026 guidance and said it expects to strengthen cash generation in the fourth quarter, supported by growth in operating profit after leases and working capital. The outlook follows organic growth in revenue and operating profit after leases over the nine months, while reported earnings declined because of non-recurring charges. The available information did not specify a target for cash generation in the final quarter, but linked the expected improvement to the two operating factors mentioned. On the company’s calendar, the board called shareholders to a meeting on 17 December 2026. Proposals include appointing Deloitte as statutory auditor for the period from 2026 to 2034, and revoking the remaining authorizations to buy back and cancel treasury shares.