TIM S.A. Q3 FY2025 earnings call

• Service revenues grew 5.2% year-over-year for the first 9 months of 2025.
• EBITDA rose 6.7% year-over-year with a 50.3% margin, net income up 42.2% year-over-year.
• Disciplined CapEx led to operational cash flow of BRL 4.5 billion. Repurchased BRL 369 million in shares and announced BRL 1.8 billion in interest on capital.
• TIM reached top 10 of FTSE Russell Diversity and Inclusion Index.
• Mobile segment growth driven by postpaid expansion, ARPU evolution, and more-for-more strategy.
• TIM Smart Mining solution with Vale partnership gaining traction.
• TIM ULTRAFIBRA showing operational improvements with client base growth.
• MyTIM app with over 17.7 million unique users driving digital engagement.
• TIM Mais loyalty program with over 2 million monthly active users and NPS over 80 points.
• Mobile ads revenues closed the quarter growing in double digits.

For the first 9 months of 2025, service revenues grew 5.2% year-over-year. The mobile segment drove growth, with postpaid expansion being a key contributor; mobile service revenues increased 5.6% annually over 9 months and 5.2% in Q3. The TIM Smart Mining solution gained traction with a partnership with Vale. EBITDA rose 6.7% year-over-year with a 50.3% margin. Broadband (TIM ULTRAFIBRA) had broadband ARPU at BRL 94 in Q3, with client base resuming growth at 3.7% year-over-year marking 8 consecutive months of positive net adds. Mobile segment contributed significantly, with postpaid monthly churn at 0.8%, and prepaid showing first signs of stabilization. B2B initiatives like TIM Smart Mining with Vale are expanding revenue streams.

• Delivering on full year guidance across service revenue, EBITDA, CapEx, and shareholder remuneration.
• Confident in finishing 2025 successfully with mobile postpaid and B2B segments performing strongly, prepaid and broadband recovering, efficiency controlling costs, and buyback program accelerating.

Q: About mobile service revenues deceleration and M&A in fiber space A: Alberto said mobile revenue dynamics are related to strategy and seasonal patterns, not primarily competitive; on M&A, Brazilian market is hyper fragmented, and broadband strategy remains unchanged but broadband has improved net additions Q: Competitive environment on mobile and postpaid price increase A: Alberto stated competitive environment on mobile is rational, price adjustment for postpaid planned for early next year Q: Lease efficiency plan A: Andrea talked about lease efficiency with efforts on make model, contract renegotiations, network sharing, and RAN sharing plans Q: Fiber business organic growth and competitive noise A: Alberto said fiber organic growth due to better acquisition quality, high-value customers, and churn management; competitive noise in markets was noticeable but not disrupting overall strategy Q: B2B and IoT growth A: Alberto explained B2B strategy focusing on verticals like agribusiness, infrastructure, utilities, mining, with plans for organic and inorganic growth in medium term Q: Operating cash flow and competitive environment confidence A: Alberto confirmed guidance is confirmed, operating free cash flow within guidance range; competitive environment on mobile remains rational Q: Price increase magnitude and B2B margins A: Alberto discussed price increase magnitude on back book for both postpaid and prepaid, and B2B margins are dilutive on EBITDA but accretive on bottom line