Telecom Italia is accelerating the sale of the network, a process carried out by one “Role”, i.e. the creation of a separate industrial unit in which the controlling stake is then sold to a group of investors led by Cassa Depositi e Prestiti and the Kkr and Macquarie funds. The network activity called Netco will then be combined with Open Fiber, which in turn is controlled by Cdp and Macquaire. The group’s chief financial officer explained today that to reach the Unica network, if all the pieces are ready, it will take a year and a half. Adrian Calaza During the capital market day. “At the end of October, this is the time required for binding documentation, and implementation will take approx. 15-18 months“We will try to shorten this path but it is a complex project and the times are not 100% under our control,” the manager said.
The operation will reduce the debt incurred by the telecom group From about 11 billion euros, bringing it down to less than 20 billion. According to Tim Nitko, you’ll make a profit before interest and taxes are paid 2.2 billion Starting in 2025, with revenues of about 5.4 billion, rising to 2.7 billion as of 2027. “NetCo may be the first example in Europe of fiber network infrastructure and technology center available for the entire market with a large-scale presence across the country” , Telecom Italia confirmed in a note. chief executive officer Pietro Labriola He stated that network separation is a “top priority”. Tim’s plan is to finish creating a single network, Netco integration with Open Fiber But we are ready for it Manage all scenariosSaid Calaza. “We also have alternative options for sustainable leverage even if it doesn’t merge with Open Fiber, such as selling a minority stake in Tim or stake in netco.” I shouldn’t tell you my preferred scenario – then the CEO turns to analysts. Labriola – that The best is to sell to Cdp from Netco, to get a portion of that synergy, but To tango you cannot be alone.
The plan also states that all business services of the company will be consolidated into a specific unit Servesco, Which will include a section for private consumers and a section for companies as well as a unit dedicated to activities in Brazil. You will be born with Serviceco 5 billion debt. For Tim Enterprise “We have big ambitions with 3 billion to 5 billion in revenue in 2030 with a change in the mix, The cloud will be the largest service with a 50% revenue contributionCEO said. Pietro Labriola. EBITDA will stabilize well above 34% to more than 1.7 billion (from 0.9 billion currently with a margin of 32%). “We have a three-phase time horizon: to the end of 2022, 18-24 months for independent company development and from 2025 to accelerate growth,” he concludes.
Maxi Organic Scissors – The new Tim, in 2030 will be the end of the reorganization plan Even less dependent. Reorganization includes a More than 9 thousand units reduced Of which approximately 6.4 thousand are in Netco which will rise from the current expected 21.4 thousand employees to 15 thousand. else 3,000 cuts will be in the consumer section while employees will drop from 14 to 11,000 or even less because “other stocks under evaluation” select Slide show of the plan. The enterprise division will instead need about 5.5 thousand people (approximately those already employed which should be 5.3 thousand).
To relaunch and restore consumer business TLC “We must work on the quality and image of the company, not on prices” or it will be a price war again, CEO Tim repeats, in response to analysts. “Anyone who wants to access 100 million euros from EBITDA (earnings before interest, taxes and depreciation are paid, so) It should have 15% of the market share and steal it from others who won’t stand idly by. It could create a reaction that would lead to a price war, “which is an unacceptable scenario.” Already in the coming quarters We will be able to show that our strategy is working.” The director promises, noting that the growth trajectory will be seen as early as 2023. The telecommunications market in Italy will soon have to reach Unite and Tim wants to be ready. “Looking at the data in Italy, two or three mobile networks can be held, and the Italian market cannot hold four. That is why the market will go towards market reform, and if we lose vertical integration (with the sale of the network, ed.), we will be able On playing a role, as the vertical integration continues, I will face more difficulties,” explains Labriola. “We expect fixed line average annual growth of 2% by 2030,” the CEO explained.
Dividend? Probably – Tim didn’t think of a possible comeback for dividends. “We can’t answer that question, we’ll do it after earnings,” the CFO told analysts. “It is a decision that the board of directors will make throughout the year. It will depend on the net income today We are unable to answer“. Calaza emphasized that the priority goal is to reduce the debt to less than 5 billion and the rest can be used to compensate shareholders. While presenting the plan Communication shares have declined In the stock exchange only to recover losses. “Tim’s value is definitely higher than it is today. We never expected the stock to go up after the capital market day. If I said I was selling the network at a very high XYZ value, it was a ‘catalyst’ that could lead to an increase in the action. But there is A plan of action here, we need to restore market confidence and demonstrate our ability to implement the plan,” Labriola commented.