TIMB · TIM S.A.

TIM S.A. reported solid first quarter 2026 results, with total net revenue of R$6,806 million, up 6.5% year-over-year. Growth was driven by mobile service revenue (+5.6% YoY) and fixed service revenue (+22.8% YoY, including two months of V8). Mobile postpaid revenue grew 7.5% YoY, while prepaid declined 6.5% YoY. Fixed broadband revenue increased 11.4% YoY, with FTTH ARPU up 3.2% to R$93.8 per month. Normalized EBITDA reached R$3,287 million (48.3% margin, stable YoY), and normalized EBITDA-AL was R$2,523 million (37.1% margin, +0.5 p.p. YoY). Net income normalized was R$821 million, up 1.3% YoY. Operating cash flow (EBITDA-AL minus capex) grew 16.8% YoY to R$1,169 million, with capex of R$1,350 million (19.9% of revenue). The company highlighted a new partnership with PicPay to expand financial services, continued network swap benefiting over 3 million customers, and AI-driven efficiency gains. Leverage remained low at 0.82x net debt/LTM EBITDA. The company also announced an IoC of R$390 million in 1Q26, down from R$690 million in 1Q25.