TIM continues with the 2024-2026 industrial plan despite the setback on the Milan Stock Exchange

The telecommunications company Telecom Italia (TIM) continues with its Industrial Plan for the period 2024-2026, despite the setback it took on the Milan Stock Exchange, where it fell almost 24% this Thursday due to the doubts raised after the presentation of its new biannual program.

This was decided by the Extraordinary Board of Directors of TIM held this Sunday so that the company’s CEO, Pietro Labriola , could inform the directors of the situation, according to local media.

Labriola and his advisors have explained what happened last Thursday, explaining to the board that the causes that have triggered the nervousness of the markets are not attributed to the plan , so the meeting had a purely informative nature and concluded without the need for any deliberation.

Therefore, the so-called “Free to run” plan approved unanimously by the board last Wednesday continues and a complementary communication to the market from management is now expected, the same sources indicated.

TIM shares plummeted last Thursday on the Milan Stock Exchange by almost 24% after the company’s Board of Directors approved the new Industrial Plan for the period 2024-2026 , which will not include its fixed network subsidiary Netco. , in the process of sale to the American fund KKR.

The Plan foresees an average increase in revenue of 3% per year until the last year, 8% in the case of profit before taxes (ebitda) and a positive cash flow in both Italy and Brazil.

In addition, it is committed to maintaining sustainable debt and then reducing it after completing Netco’s debt . It is also selling its subsidiary Sparkl e, which manages underwater cables, to the Italian State , but the latest offer has been “unsatisfactory”, according to the Efe agency.

The group’s financial director, Adrian Calaza , tried to reassure the market: “It is not an aggressive plan but an ambitious one. If we strive as we must, we will achieve it,” he told the media.

TIM closed last year 2023 with revenues of 16.3 billion euros (17.49 billion dollars), 3.1% more than the previous year, and confirming “strong growth” in Brazil.

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