TIM S.A.'s Q4 2024 Earnings Call: Contradictions in Revenue Growth, Shareholder Returns, and Cost Strategies

These are the key contradictions discussed in TIM S.A.'s latest 2024Q4 earnings call, specifically including: Revenue Growth Drivers and Pricing Strategy, Shareholder Remuneration, Prepaid Strategy and Inflation Impact, Network Cost Optimization and CapEx Strategy:



Revenue and Service Growth:
- TIM S.A. reported service revenue growth of 6.4% for 2024, at the top of their guidance range, with 5.1% growth in Q4.
- Growth was driven by strong mobile services performance, particularly in postpaid, which rose close to 9% year-over-year.

Operational Efficiency and Margin Expansion:
- TIM's EBITDA increased by 8% in 2024 compared to 2023, with a margin expansion to 49.6%.
- This was achieved through operational efficiencies, particularly in network cost optimization and improvements in commercial negotiations.

5G Network Expansion and Impact:
- TIM expanded 5G coverage to more than 600 cities, representing a 20% increase over the second player.
- Consequently, 5G traffic doubled compared to the previous year, highlighting the strategic focus on enhancing network quality and leadership.

C6 Bank Partnership Resolution:
- The settlement with C6 Bank ended the partnership and monetized TIM's participation, generating BRL270 million in gross revenues.
- This resolution confirms the strategic value of customer platform initiatives and opens new opportunities in financial services.