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TIM Proposes €400 Million Buyback and 10‑for‑1 Share Consolidation on Improved 2025 Performance

Management ties cash returns to Sparkle proceeds, targeting a 70% payout of 2026 cash.

Overview

  • The board will seek shareholder approval on April 15 for a €400 million share buyback and a 10‑for‑1 consolidation.
  • Preliminary 2025 results show €13.7 billion in revenue up 2.7%, EBITDA growth of roughly 6–6.5%, and net financial debt reduced to about €6.9 billion after €700 million Q4 cash generation.
  • The buyback is intended to be funded largely by the planned €700 million sale of Sparkle to the Ministry of Economy, with closing expected in the second quarter of 2026.
  • TIM signaled a return to dividends with about €0.5 billion targeted for payment in 2027, consistent with its plan to distribute 70% of ordinary cash generated in 2026.
  • Non‑recurring accounting charges of roughly €600–628 million will weigh on 2025 net profit, while €973 million has already been received from selling a receivable tied to the 1998 concession fee; final 2025 accounts are due March 11 and a new industrial plan is slated for the second half of 2026.