TIM(US:TIMB)2025-11-04 11:03Financial Performance - TIM S.A. reported net revenue of R$6,710,987 thousand for Q3 2025, an increase of 4.55% compared to R$6,418,943 thousand in Q3 2024[18] - The company's gross income for the quarter was R$3,685,333 thousand, up from R$3,459,563 thousand in the same period last year, reflecting a growth of 6.53%[18] - Net profit for the period reached R$1,207,705 thousand, representing a significant increase of 50% compared to R$805,026 thousand in Q3 2024[20] - Earnings per share for Q3 2025 were R$0.50, compared to R$0.32 in Q3 2024, marking a growth of 56.25%[18] - The company’s total comprehensive income for the period was R$1,207,705 thousand, consistent with the net profit for the period[20] - TIM S.A. reported a net profit of R$2,980,714 thousand for the period ended September 30, 2025, compared to R$2,105,669 thousand in the same period of 2024, reflecting a year-over-year increase of approximately 41.5%[21] - Normalized Net Income for Q3 2025 was R$1,208 million, a significant increase of 50.0% YoY [37] - Normalized net income for Q3 2025 was R$1,208 million, reflecting a 50.08% increase compared to R$805 million in Q3 2024[53] Assets and Liabilities - Total assets as of September 30, 2025, amounted to R$57,371,375 thousand, a rise from R$56,327,311 thousand at the end of December 2024[15] - Total liabilities increased to R$32,158,148 thousand from R$29,922,675 thousand, indicating a growth of 7.36%[16] - Current liabilities rose to R$14,678,541 thousand, compared to R$12,827,248 thousand in December 2024, showing an increase of 14.39%[16] - TIM S.A. reported a decrease in profit reserves from R$12,559,460 thousand in December 2024 to R$10,016,294 thousand as of September 30, 2025[16] - The company’s retained earnings increased to R$1,680,714 thousand as of September 30, 2025, compared to R$1,305,669 thousand in the previous year, indicating strong profitability retention[29] Cash Flow and Investments - The company’s cash and cash equivalents stood at R$3,673,535 thousand, up from R$3,258,743 thousand, reflecting an increase of 12.7%[15] - Cash generated by operations for the period was R$9,420,114 thousand, compared to R$7,900,062 thousand in the previous year, indicating an increase of approximately 19.2%[25] - The net cash used in investment activities was R$3,376,594 thousand for the period, slightly higher than R$3,256,358 thousand in the previous year, indicating continued investment in growth[27] - TIM S.A. maintained cash and cash equivalents at R$3,673,535 thousand at the end of the period, an increase from R$2,287,330 thousand in September 2024, reflecting improved liquidity[27] Revenue Streams - Service Revenue increased to R$6,534 million in Q3 2025, reflecting a 4.8% YoY growth, driven primarily by Mobile Services [37] - Mobile Service Revenue rose by 5.2% YoY to R$6,203 million in Q3 2025, with a record Mobile ARPU of R$33.1, up 4.6% YoY [38] - Clients Generated Revenue (CGR) grew by 6.3% YoY to R$5,819 million in Q3 2025, indicating strong revenue growth from both TIM and non-TIM customers [39] Customer Metrics - The Mobile Customer Base stood at 62,619,000, with a 9.0% increase in postpaid customers YoY [37] - TIM recorded 426,000 mobile net additions in Q3 2025, a significant increase compared to 163,000 in Q3 2024[79] - The prepaid segment saw a decline of 6.8% year-over-year, with 30.275 million users, while the postpaid segment grew by 8.0% to 32.344 million users[79] - The average revenue per user (ARPU) for postpaid customers was R$ 441, reflecting a 1.9% increase year-over-year[79] Operational Efficiency - Normalized Operating Expenses totaled R$3,242 million in Q3 2025, up 1.8% YoY, remaining below the inflation rate of 5.17% [46] - Normalized EBITDA for Q3 2025 reached R$3,469 million, a 7.28% increase year-over-year from R$3,236 million in Q3 2024[53] - Normalized EBITDA margin improved to 51.7%, up 1.3 percentage points from 50.4% in Q3 2024[53] - Operating free cash flow for Q3 2025 was R$1,820 million, a 4.5% increase from R$1,743 million in Q3 2024[66] Partnerships and Strategic Initiatives - The partnership with IHS Brasil aims to construct and operate up to 3,000 telecommunications towers, enhancing infrastructure for IoT projects [36] - The strategic partnership with Cartão de Todos generated over 1 million leads, with over 50% being complete and qualified registrations[75] - TIM's education services launched an exclusive AI course with Google, achieving 50,000 enrollments shortly after launch, contributing to a total of 250,000 enrolled users[74] - The partnership with Axia Energia expanded to nationwide coverage, focusing on renewable energy solutions for corporate clients[76] Market and Regulatory Environment - The Company is currently studying the potential impacts of the OECD Pillar Two legislation, which establishes a minimum tax rate of 15% for large corporate groups, effective from 2025[130][133] - The Company assessed the impact of the new accounting standards and did not identify any material impact on its quarterly information[123][127] Accounts Receivable and Inventory - Trade accounts receivable increased to R$5,132,439 thousand in September 2025 from R$4,815,750 thousand in December 2024, representing a growth of approximately 6.6%[173] - Total gross accounts receivable increased to R$5,809,910 thousand in September 2025 from R$5,486,319 thousand in December 2024, reflecting a growth of about 5.9%[173] - Total inventory increased to R$371,966 thousand in September 2025 from R$310,054 thousand in December 2024, marking a rise of about 19.9%[179]