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Introduction & Market Context
TIM S.A. (B3:TIMS3) released its second quarter 2025 results on July 31, showcasing solid financial performance across key metrics. The company continues to strengthen its position in Brazil’s telecommunications market through 5G leadership and a strategic focus on higher-value customers. Despite a challenging economic environment, TIM’s stock has performed well over the past year, though it experienced a slight decline of 0.92% to R$24.75 on October 31, 2025, according to recent market data.
Quarterly Performance Highlights
TIM reported service revenue growth of 5.4% year-over-year in the first half of 2025, driven primarily by mobile services which grew 5.6% in Q2 2025. The company achieved an EBITDA increase of 6.5% year-over-year with a margin of 49.5%, representing an expansion of 0.8 percentage points compared to the same period last year.
As shown in the following comprehensive overview of key performance indicators, TIM’s operating cash flow reached R$2.7 billion with double-digit expansion, while capital expenditure decreased to 17.1% of revenues:
The company’s mobile business continues to be the primary growth driver, with mobile service revenue increasing by 5.6% year-over-year in Q2 2025. TIM maintains the highest mobile ARPU (Average Revenue Per User) in the industry at R$32.7 per month, with postpaid customers contributing approximately 70% of mobile service revenue.
The following chart illustrates the evolution of service revenue across both fixed and mobile segments:
Detailed Financial Analysis
TIM’s financial performance has been bolstered by its strategic shift toward postpaid customers, which has significantly improved its revenue mix. Postpaid revenues grew by 10.7% year-over-year in Q2 2025 and by 12.2% in the first half of 2025 compared to the same period in 2024.
This strategic shift is clearly demonstrated in the following chart showing the consistent growth in postpaid revenues:
The company’s disciplined approach to cost management has been instrumental in driving margin expansion. Operating expenses grew by just 3.1% year-over-year in Q2 2025, well below the inflation rate of 5.35%, resulting in an EBITDA margin expansion of 0.8 percentage points to 50.8%.
The following chart illustrates this margin expansion driven by operational efficiency:
Perhaps most impressive was TIM’s net income performance, which grew by 37.3% year-over-year in the first half of 2025, reaching R$1,786 million. Operating cash flow, defined as EBITDA-AL (After Leases) minus Capex, increased by 14.3% year-over-year to R$2,719 million.
The strong financial performance is clearly illustrated in this chart showing net income and cash generation growth:
Strategic Initiatives
TIM’s 5G leadership remains a cornerstone of its strategy, with the company now covering 707 cities, representing 70% of Brazil’s urban population. Over the past three years, TIM has dramatically expanded its 5G footprint while simultaneously improving capital efficiency.
The following comprehensive overview shows TIM’s 5G evolution across multiple metrics:
The company is implementing a "360° approach" in key markets, with a particular focus on São Paulo and Minas Gerais. In São Paulo, TIM is accelerating network modernization with over 1,500 4G and 5G sites modernized and plans to open 30 new stores by the end of 2025. In Minas Gerais, the company aims to expand 5G coverage from 57 cities in May 2025 to 131 cities by December 2025.
TIM is also making progress in the B2B sector, particularly in IoT (Internet of Things) solutions for the logistics industry, with R$406 million in contracted revenue since Q1 2024. The company has expanded its 4G coverage to over 7,000 km of roads and has 109 companies in its B2B IoT portfolio.
Additionally, TIM is leveraging artificial intelligence to drive operational efficiency, with 100 AI use cases mapped, 56+ prioritized, 24 in pilot phase, and 7 already executed. These initiatives are expected to generate cost savings and operational improvements in the coming quarters.
Forward-Looking Statements
For the second half of 2025, TIM outlined several priorities, including developing new partnerships in mobile services, expanding B2B IoT verticals, implementing efficiency programs to address operational expenses, redefining relationships with tower companies, and advancing its ESG (Environmental, Social, and Governance) initiatives.
The company highlighted its commitment to sustainability, noting that 100% of its energy consumption comes from renewable sources, with approximately 60% from distributed generation projects. TIM also emphasized its diversity initiatives, with women comprising 52% of employees and 37.4% of leadership positions, and black people representing 22.1% of leadership positions.
TIM’s CEO, Alberto Griselli, expressed confidence in meeting the company’s 2025 targets, stating in the recent earnings call that "We are on track to meet our 2025 targets." He also emphasized the role of artificial intelligence in enhancing productivity: "Artificial intelligence is at the center of present and future opportunities to improve productivity."
As TIM continues to execute its strategy of focusing on high-value customers, expanding 5G coverage, and driving operational efficiency, the company appears well-positioned to maintain its growth trajectory despite the competitive telecommunications landscape in Brazil.
Full presentation:
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