The TIM Group's Q1 2023 results confirm the trend of stabilising and relaunching the business in Italy and accelerating development in Brazil.
At the Group level, revenue increased by 4.3% to €3.8 billion compared to Q1 2022, and EBITDA grew by 3.8% to €1.5 billion.
With regard to the performance of the various business areas in Italy, TIM Consumer recorded a positive trend compared to previous quarters, while the Volume-to-Value strategy that is progressively repositioning TIM as a premium brand continues. In the first three months of 2023, TIM was the best brand in terms of awareness.
TIM Enterprise also continued to grow, with a 4.4% increase in total revenue and 3.9% in service revenue. ICT services (connectivity, cloud, IoT, security) generated 58% of total revenue this quarter, in line with 2022.
As far as NetCo is concerned, total revenue grew in the quarter (+3.4%), while revenue from services fell slightly but improved compared to the trend in previous periods. We also expect further improvement in the coming quarters due to the increasing rationalisation of the market and the authorities' approval of new regulated wholesale prices. As of 31 March 2023, NetCo managed around 16 million fixed accesses (more than 72% of which is UBB) with a market share of 79% and FTTx coverage of more than 95% of active lines.
In Brazil, TIM Brasil continued to achieve excellent results, with revenue up 19.3% year-on-year in Q1 2022 thanks to a solid organic performance and the contribution of Oi's assets.
Net debt after lease as at 31 March 2023 was €20.5 billion, up €0.4 billion compared to 31 December 2022, while the liquidity margin was over €8.0 billion, covering debt maturities until the end of 2024. In May, the European Investment Bank also confirmed its commitment, alongside TIM, to developing latest-generation network infrastructure, with a €0.36 billion loan, dedicated to expanding 5G coverage in Italy, which includes 462 municipalities today.
We also continued with cost containment actions to the extent that 26% of the incremental cost containment target for 2023 was already achieved in the quarter.
The results of this first quarter confirm all the Business Plan targets, despite the difficult macroeconomic scenario. This is further confirmation that the path taken more than a year ago was and is the right one.