TIM (NYSE:TIMB) reported second-quarter results marked by revenue growth, expanding profitability and strong cash generation, while executives outlined initiatives aimed at diversifying the company’s revenue base through broadband, business services, content and financial-services partnerships.
Chief Executive Officer Alberto Griselli said quarterly revenue approached BRL 7 billion, while service revenue increased about 6% in the first half of 2026. EBITDA rose about 7% during the first six months, and EBITDA after leases increased close to 8%, supported by operational efficiency, cost discipline and margin expansion.
Mobile growth slows as pricing actions affect customer dynamics
Mobile remained the company’s foundation, with postpaid customers accounting for nearly 70% of mobile service revenue. However, Griselli said mobile revenue growth slowed to roughly 4.7%, reflecting the dilution of prior price increases and softer customer-base dynamics during the first half.
The company implemented a price increase during the first quarter, which contributed to elevated churn in the first and second quarters, according to Griselli. He said churn improved in June compared with April.
To support mobile revenue and customer growth, TIM has revised its portfolio across several areas:
- TIM Controle Fit: A credit-card-paid offering intended to facilitate migration from prepaid service to Controle plans with lower credit risk.
- TIM Play: A paid content aggregation platform designed to create additional monetization opportunities and increase customer retention.
- PicPay partnership: A new distribution channel intended to expand TIM’s digital ecosystem and provide another platform for customer acquisition.
- TIM Ultracombo: A converged offer combining fiber broadband, mobile service and content.
Griselli said the newer offerings serve complementary goals, including ARPU growth, customer migrations and broader market appeal. The company acknowledged a risk that lower-tier plans could cannibalize higher-end Controle offers, but said it seeks to mitigate that risk through product design and commercial-network compensation structures.
On competition, Griselli said the market has become more promotional as below-the-line, or BTL, offers have become more widely available. He said TIM intends to raise front-book Controle pricing but will monitor competitors with larger postpaid market shares before moving.
Broadband strategy centers on I-Systems and Ultracombo
Griselli described the acquisition of I-Systems as an accelerator for TIM’s broadband strategy. He said owning the network gives the company greater control over customer experience, profitability and commercial execution, alongside its existing agreement with V.tal.
The CEO said the acquisition should not have a material effect on TIM’s capital expenditure profile because the company expects to absorb related spending through CapEx optimization measures already underway. Chief Financial Officer Andrea Viegas said the company is not increasing its stated CapEx guidance because of I-Systems and instead plans to monetize the acquired assets by increasing take-up.
TIM Ultracombo was launched nationwide across the company’s footprint and is available through TIM’s network and its V.tal partnership in major Brazilian cities, Griselli said. Commercial terms may vary by region because broadband competition is regional. He said early results from the launch have been positive, even before a wider advertising campaign.
Griselli said TIM is also evaluating other organic ways to add technologies to its portfolio and continues to assess possible broadband acquisitions. The company has profiled potential targets and does not see urgency for additional transactions following the I-Systems acquisition, he said.
B2B and AI initiatives add to growth plans
B2B revenue is gaining importance and represents about 7% of TIM’s service revenue, according to Griselli. The company is expanding beyond connectivity through internet-of-things, private-network and digital-solution offerings.
The company said it has not seen a slowdown in its B2B activity despite macroeconomic uncertainty. Griselli said TIM recorded its strongest second quarter in IoT solutions and that the pipeline for V8’s digital and artificial-intelligence services remains strong.
TIM is working with V8 to cross-sell digital and AI offerings into selected verticals, including agribusiness, logistics, utilities and mining. Griselli cautioned that sales cycles for more complex projects may take time because the solutions are business-critical for customers.
Artificial intelligence is also being used internally to support productivity initiatives in network operations, IT, customer care, collections and legal functions. Griselli said AI-driven collection efforts have engaged more than 2 million customers and produced a meaningful improvement in recovery rates. The company is also working to automate more complex call-center interactions, including customer questions related to bills.
Capital allocation and bad debt outlook
Viegas said TIM’s approach to capital allocation remains unchanged following the I-Systems transaction: invest in projects with attractive returns while maximizing shareholder remuneration. She said the company has sufficient cash to support dividends and I-Systems-related CapEx, and noted that TIM recently announced a capital increase at I-Systems to address its debt.
On bad debt, Viegas said second-quarter results were affected by a one-time issue involving a B2B customer partnership. She also cited a slight increase associated with expansion of the postpaid customer base, but said management believes bad debt has reached a plateau and expects gradual stabilization. TIM is using credit-score models, customer segmentation and AI-supported collections to mitigate the impact.
Griselli concluded that TIM is pursuing growth opportunities across mobile, broadband and B2B while seeking to maintain productivity gains and broaden the company’s sources of revenue.
About TIM (NYSE:TIMB)
TIM SA, a telecommunications company, provides mobile voice, data, and broadband services in Brazil. The company offers in mobile, landline, long-distance, and data transmission services. It also offers fixed ultra-broadband, fixed ultraband broadband, and digital content services. The company serves individuals and corporates, as well as small, medium, and large companies. TIM S.A is based in Rio de Janeiro, Brazil. The company operates as a subsidiary of TIM Brasil Serviços e Participações SA
