TIM(US:TIMB)2026-02-11 14:00Financial Data and Key Metrics Changes - Service revenue grew by 5.2% year-on-year, exceeding inflation [2] - EBITDA increased by 7.5%, with an EBITDA margin reaching 51% [2][10] - Operating cash flow expanded by 16%, closing the year with a margin of 22.7% [2][11] - The company returned BRL 4 billion in cash dividends and BRL 750 million in share buybacks, achieving a payout ratio of 139% [2][11] Business Line Data and Key Metrics Changes - Mobile service revenues increased by 5.4%, with postpaid revenues growing by 9.5% in Q4 [4][5] - Postpaid ARPU reached almost BRL 55, reflecting a year-on-year growth of 3.1% [4] - Broadband revenues returned to growth in Q4, with a 6.2% year-on-year increase [6][7] - B2B solutions surpassed BRL 1 billion in total contracted value, confirming its role as a growth engine [3][8] Market Data and Key Metrics Changes - TIM remains the leader in 5G coverage in Brazil, with coverage in over 1,000 cities, 52% more than the second player [3] - The company achieved significant milestones in various sectors, including agribusiness and logistics, enhancing its market position [7][8] Company Strategy and Development Direction - The company aims to drive value creation through mobile, B2B, and broadband, supported by artificial intelligence, efficiency, and ESG initiatives [13][14] - The acquisition of I-Systems is expected to enhance operational efficiency and customer experience [16][21] - The focus remains on strengthening profitability and improving customer experience in mobile services [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue creating value for stakeholders as it enters 2026 [12] - The company is prepared for potential challenges in the competitive landscape, particularly regarding mobile portability and pricing adjustments [30][32] Other Important Information - The company completed a network modernization project in São Paulo, enhancing 5G and 4G coverage [6] - The efficiency program has been a core part of operations, with operating costs growing below inflation at 1.8% year-on-year [10] Q&A Session Summary Question: On margins and efficiency, how much of the efficiency is structural? - Management indicated that the efficiency gains are largely structural, with some temporary effects in the fourth quarter [18][23] Question: Regarding the acquisition of I-Systems, what does this suggest about the company's commitment to the asset? - The acquisition is seen as a strategic move to enhance operational efficiency and customer service, with no plans to sell the broadband operation [21][22] Question: What are the main drivers behind the decrease in network and interconnection expenses? - Management noted that while some costs decreased, others, such as those related to content providers, increased due to new offers [28][34] Question: How does the company view mobile competition and portability trends? - The company maintains stable churn levels and believes the market remains rational despite increased portability [30][32] Question: Can you provide insights on the upcoming price increases? - Price adjustments for postpaid customers are underway, with a similar magnitude to previous years [55][56] Question: What is the outlook for CapEx in the coming years? - CapEx is expected to remain in line with guidance, with opportunities for efficiency and anticipation of investments [55][57]