Tim Enterprise is «a business with high potential in which it can also play a role possibly through acquisitions». Pietro Labriola, CEO of Tim, said this on the occasion of Telco for Italy, speaking about the fact that Tim Enterprise’s business, which includes the cloud, cybersecurity and IoT, is profitable. Enterprise is the new Tim after the sale of Netco.
THE LINE
All eyes are also on the closing of Tim’s operation with the Kkr fund for the sale of NetCo, expected on July 1st. Transfer approved last May by the EU and which moves around 18.8 billion, 9 net. For the Italian telco this is the beginning of a new era. The operation, as stated by Labriola, «will change the telecommunications scenario in Italy and Europe». A new chapter of industrial development is opening up for all of us – he said – which projects us towards the future”, the CEO always underlined. Above all, he explained that Tim is ready for new acquisitions. NetCo, which includes the activities of the primary and backbone fixed telephony network of Telecom Italia and of FiberCop, a joint venture between TIM and KKR, will thus become an independent company, with the aim of accelerating the development of the fiber optic network in Italy.
From 1 July, therefore, there will be two new and distinct industrial realities. “It’s a bit like when two brothers who grew up together become adults and independent,” added the CEO. «Today we are ready to face our different challenges and each one will aim to reach their own goal, their own objectives, with their specific characteristics. However, we will both continue to be an important part of the country.” But the new Tim will not give up its role as the main player in the market and will continue to offer and develop fixed and mobile network services and innovative technological solutions for people, companies and public administrations. «With a more solid financial structure – continued Labriola – the company will be able to be a protagonist in new technological and business scenarios».
THE SCENERY
What scenarios? For Labriola, for example, the business of Tim Enterprise – which includes cloud, cybersecurity and IoT – is a harbinger of growth. To the point that the CEO does not exclude the possibility that Tim may apply to play an important role in the future, «possibly through acquisitions», in this segment. In his speech at «Telco per l’Italia», the number one of Tim also spoke of the difficulties that the Group has had to deal with in this period and that led to the sale of NetCo. «For three years – said Labriola – we have been saying that we need to get rid of the burden of debt. We had almost 21 billion euros of debt, we paid 1.2 billion euros of interest per year with a rate of 3.7%. In these conditions we could not give an industrial and strategic perspective to our company without splitting up».
The Tim group closed the first quarter of 2024 with revenues of 3.9 billion (+1.2%) and an EBITDA of 1.5 billion (+1.6%), increasing for the sixth consecutive quarter.
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