TIM Returns to Shareholder Remuneration & Plans Stock Split
- Is taking steps to bolster its shareholder base and simplify its capital structure, while also reaffirming its commitment to returning capital to investors.
- The proposed reverse split will consolidate existing shares at a ratio of 100 to 1, followed by a 1-for-1 split, effectively maintaining the total number of shares outstanding...
- The company’s decision comes on the back of a strong financial performance in 2025, with revenues reaching 13.7 billion reais, a 2.7% increase.
TIM S.A. Is taking steps to bolster its shareholder base and simplify its capital structure, while also reaffirming its commitment to returning capital to investors. The Brazilian telecommunications company announced a proposed reverse stock split and a subsequent regular split, alongside plans for a share buyback and a potential return to dividend payments in 2027.
The proposed reverse split will consolidate existing shares at a ratio of 100 to 1, followed by a 1-for-1 split, effectively maintaining the total number of shares outstanding but increasing the per-share price. This move, scheduled for consideration at a shareholder meeting on April 15th, aims to attract investors who may be restricted from holding shares priced below one euro, and to reduce the prevalence of short selling activity on the stock, according to the company.
The company’s decision comes on the back of a strong financial performance in 2025, with revenues reaching 13.7 billion reais, a 2.7% increase. A key driver of this growth has been the company’s enterprise services division, Tim Enterprise, which saw a 7% increase in revenue, largely fueled by demand for cloud services. The fourth quarter of 2025 saw a cash flow of 700 million reais, bringing the total debt below 6.9 billion reais.
TIM is also proposing a 400 million reais share buyback, funded in part by the 700 million reais sale of its Sparkle submarine network to the Italian Ministry of Economy and Finance. Looking ahead, the company intends to distribute 70% of its ordinary cash generation in 2026, potentially paving the way for a dividend return in 2027.
CEO Pietro Labriola highlighted the company’s transformation since 2022, emphasizing a strengthened financial structure, increased profitability, and sustainable cash generation. The company’s operating margin, excluding lease payments, grew by 6.5% to 3.7 billion reais in 2025.
However, the 2025 results will be impacted by a 600 million reais charge related to a revised valuation of customer activation costs for fixed-line network services. Despite this, TIM is projecting continued growth in the coming years. The company forecasts revenue growth of 2-3% and EBITDA growth of 5-6% in 2026, with an anticipated cash flow of 1.8 billion reais, including approximately one billion reais from a government settlement related to historical concession fees.
Labriola indicated that a new industrial plan will be presented in the second half of 2026, following the conversion of savings shares and consideration of key industrial partnerships, including potential synergies with its primary shareholder, Poste Italiane.
The moves signal a renewed focus on shareholder value and a confident outlook for the future, as TIM continues to navigate a competitive landscape and capitalize on growth opportunities in the Brazilian telecommunications market.