Contradictions Unveiled: TIM S.A.'s 2025Q2 Earnings Call on Prepaid Strategy, Revenue Growth, and B2B Potential

Prepaid segment strategy and performance, revenue growth drivers, and B2B strategy and revenue growth are the key contradictions discussed in TIM S.A.'s latest 2025Q2 earnings call.



Strong Financial Performance:
- TIM Brazil reported service revenues grew by 5.4% year-over-year in the first half of 2025, with EBITDA increasing by 6.5%, achieving a margin of 49.5%.
- This trend was driven by strong mobile service performance and improved operational efficiency.

Mobile Service Growth and ARPU Increase:
- Total mobile service revenue grew 5.6% year-on-year in Q2, 2025.
- The increase in mobile ARPU, reaching close to BRL 33 per month, was attributed to a combination of volume and value initiatives, including postpaid upselling and prepaid-to-postpaid migration.

5G Network Expansion and Efficiency:
- TIM Brazil has 30% of traffic flowing via its 5G network, with 5G accounting for 30% of data traffic in state capitals and 36% in Sao Paulo.
- The rapid expansion of 5G coverage has led to a significant increase in the adoption of 5G devices, contributing to a shift in traffic from 4G to 5G, enhancing operational efficiency.

Investments in IoT and B2B Expansion:
- TIM's B2B IoT strategy saw substantial growth in contracted revenues, particularly in agribusiness, utilities, and logistics.
- The company is expanding its addressable market and opening new avenues for growth by providing integrated solutions that enhance operational efficiency.

Sustainability Leadership and ESG Achievements:
- TIM Brazil was recognized as the most sustainable Brazilian company and topped the B3 Sustainability Index.
- The company's commitments to renewable energy use, diversity and inclusion policies, and accessibility have earned it multiple sustainability indexes and awards.