TIM S.A. Q2 FY2025 earnings call

• Strong execution in first half of 2025 with service revenues growth, EBITDA up 6.5% (49.5% margin).
• Leading in 5G technology, with 30% of traffic via 5G network. Recognized as most sustainable Brazilian company.
• Network modernization accelerating, partnerships expanding, new revenue opportunities developed.
• B2B IoT strategy performing well with growth in contracted revenues, especially in agribusiness, utilities, and logistics.
• Digital ecosystem expanding, collaboration with Eletrobras launching energy sales to corporate clients.
• 5G fund performing well, with new investment in financial service company [Kat] Investimentos.
• ESG achievements highlighted with recognition in sustainability indexes.

Service revenues grew by 5.4% year-over-year, driven by mobile services. In quarter 2, total service revenue grew 5.1% year-on-year, with mobile sustaining a faster pace at 5.6%. Postpaid services saw 450,000 new customers in Q2, and postpaid revenue grew 12.2% year-over-year. B2B IoT strategy is performing well with contracted revenues growing, particularly in agribusiness, utilities, and logistics. 30% of traffic flows via TIM's 5G network.

• On track to meet 2025 targets. Focus on executing strategic initiatives in second half of 2025.
• Develop new partnerships in financial services, expect announcements in coming months.
• Advance B2B IoT solution with portfolio expansion and vertical presence reinforcement.
• Accelerate efficiency initiatives under program to support margin expansion.
• Secure lease negotiations and optimize industrial costs.
• Improve broadband operation while monitoring market movements.

• Global volatility increased by end of semester.
• Competitive pressures in fixed business and potential challenges in tower lease negotiations.
• Operational costs impacted by inflation, requiring ongoing negotiations and adjustments.

Q: Outlook for lease lines and evolution of fixed business A: Alberto mentioned no new inorganic news on fixed business, focusing on organic optimization. Andrea discussed tough negotiations on towers but positive about achieving lease growth in line with inflation.

Q: Color on CapEx, marketing expenses, and tower efficiency A: Alberto discussed CapEx efficiency from network modernization in Sao Paulo. Andrea mentioned marketing expenses have seasonality with more campaigns in second half. On towers, negotiations focus on win-win with extensions and fair market prices.

Q: Mobile revenue drivers and tower efficiency initiative A: Alberto noted mobile revenue drivers include roaming agreements, B2B IoT, and diversified revenue streams. Andrea explained tower negotiation focuses on contract extensions and discounts, with options to build towers if needed.

Q: OpEx drivers and competition in regions A: Andrea discussed OpEx increase related to international roaming and provider costs, but linked to revenue growth. Alberto mentioned rational competition in market, focusing on quality to protect market share in regions like Northeast.