This article first appeared on GuruFocus .
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Service Revenue Growth:Increased around 6% in the first half of the year.
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EBITDA Growth:Grew around 7% in the first half.
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EBITDA After Lease:Increased close to 8%.
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Net Income:Surpassed BRL1 billion in the quarter, increasing around 6% year-over-year in the first half.
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Operating Cash Flow:Surpassed BRL3 billion in the first half, growing at a double-digit pace.
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Mobile Service Revenue:Postpaid expansion represents close to 70% of mobile service revenues.
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B2B Revenue:Now represents around 7% of service revenues.
Release Date: July 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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TIM SA ( NYSE:TIMB ) reported a 6% increase in service revenue for the first half of 2026, demonstrating solid revenue growth.
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EBITDA grew by approximately 7% in the first half, with EBITDA after lease increasing close to 8%, supported by operational efficiency and cost discipline.
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Operating cash flow surpassed BRL3 billion in the first half, growing at a double-digit pace, reinforcing strong cash generation.
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The company launched new offerings such as TIM Ultra Combo and TIM Pay, which are expected to enhance customer engagement and create new monetization opportunities.
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TIM SA ( NYSE:TIMB ) continues to expand its B2B segment, with revenue now representing around 7% of service revenues, and is advancing in areas like IoT and digital solutions.
Negative Points
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The mobile subscriber base contracted in the quarter, with a decline in market share, attributed to competitive pressures and pricing strategies.
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Revenue growth excluding M&A was slightly below inflation, with core client-generated business growing at only 3.1% year-over-year.
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There was an increase in bad debt expenses, partly due to a nonrecurring effect from a specific B2B client, indicating potential macroeconomic pressures.
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The company faces challenges in balancing capital allocation for shareholder distributions and investments in fiber and convergence, especially after the iSystems acquisition.
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International roaming expenses showed volatility, complicating the assessment of EBITDA margins and indicating potential mismatches between revenue and costs.
Q & A Highlights
Q: How has the acquisition of iSystems impacted your FTTH build economics and what are the incremental CapEx commitments? Also, can you elaborate on the mobile base contraction this quarter? A: The acquisition of iSystems accelerates our broadband strategy by allowing us to control the network and client experience, which enhances our financial profile. We don't foresee a significant impact on CapEx as we are optimizing our CapEx base. Regarding the mobile base, the contraction is due to a strategic focus on value over volume, and the competitive market dynamics have also influenced gross additions.
Q: Revenue growth excluding M&A was slightly below inflation. Are there plans to reaccelerate growth in the core mobile line? A: We have restructured our offerings to boost customer base dynamics, including launching new convergent projects and control plans payable via credit card. The competitive environment has seen more below-the-line offerings, and we are adapting our portfolio to remain competitive.
Q: What is the risk of cannibalization with the new hybrid plans, and what is your M&A strategy for broadband growth? A: Cannibalization risks are mitigated through strategic remuneration of our commercial networks. Our M&A strategy involves analyzing potential targets for broadband growth, but we are not in a rush as we focus on organic growth and optimizing our current assets.
Q: Can you provide insights into the margin dynamics and capital allocation strategy post-iSystems acquisition? A: Margin expansion is supported by productivity initiatives across different business lines. The acquisition of iSystems does not change our capital allocation strategy, which focuses on maximizing shareholder returns while maintaining investment in growth areas.
Q: How are bad debt expenses trending, and is the macro environment affecting your B2B growth plans? A: Bad debt expenses have been impacted by a one-off B2B client issue, but we expect stabilization moving forward. The macro environment has not slowed our B2B growth, as we continue to see strong demand in our strategic verticals.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
