(Alliance News) - In addition to part of the 2022 and fourth quarter accounts, the board of Telecom Italia Spa also approved the company's new business plan, which covers the three-year period 2023-2025.

"Despite a macroeconomic environment that has changed profoundly since last year, the new plan is in continuity with the previous one and with the project presented at last July's capital market day. In particular, thanks to better-than-expected 2022 results, the plan envisages further acceleration at the group level," the company explained.

TIM expects group revenues from services to grow low single digits in 2023 with the domestic business essentially stable and Brazil growing high single digits; group revenues from services to grow low single digits; group organic Ebitda to grow mid single digits in 2023, with the domestic business stable or growing low single digits and Brazil growing low double digits; group organic Ebitda to grow over the mid single digit plan period; group organic after-lease Ebitda to grow low to mid single digits for 2023; group organic after-lease Ebitda to grow mid single digits.

Again, group Capex is expected at about EUR4.0 billion in 2023, stable over the plan period; at the

domestic level, EUR3.1 billion annual investments are expected; cumulative group after-lease equity free cash flow is expected to be slightly positive over the plan horizon.

Together with the plan based on the current organizational and business model, the optimized business configuration composed of specific entities includes four strategic lines: TIM Consumer, in which initiatives aimed at implementing the "Value vs. Volume" premium positioning strategy will continue, with the goal of differentiation from competitors. Also, the progressive repricing of the customer base will continue, along with the introduction of inflation adjustment mechanisms.

Then, TIM Enterprise: for 2023-2025, growth above the reference market is expected, with a revenue CAGR of 6% over the plan horizon, thanks to increased standardization and industrialization of offers and the consolidation of a bundled proposal for public administration.

For TIM Brasil, the company maintains its focus on a value strategy and will derive additional growth impetus from the integration of Oi's assets, continuing on its path toward a "Next Gen Telco."

Finally, for NetCo, TIM's strategic priorities are a strong push to migrate lines to FTTH technology, coupled with an ambitious fixed and mobile network coverage plan. By 2025, the group aims to reach 48 percent of the country's real estate units on FTTH. On the mobile segment, the priority is to maximize coverage in 5G, which will reach 90 percent of the population by 2025.

On the ESG front, the 2023-2025 plan defines priorities for all business areas and operations, with the goal of improving environmental and social impact while improving business results. This is done through the pursuit of efficiency, the use of circular economy in processes, innovative and sustainable procurement, the provision of new services for PA and businesses, and driving the digital transition.

The board of directors also resolved not to co-opt a director to replace Arnaud de Puyfontaine, given the approach of the shareholders' meeting that will be called to decide on the appointment.

TIM's stock closed Tuesday up 0.5 percent at EUR0.30 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

Comments and questions to redazione@alliancenews.com

Copyright 2023 Alliance News IS Italian Service Ltd. All rights reserved.