TIM Brasil CEO Sees Boost from Parent Company’s Network Sale

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TIM Brasil CEO Sees Boost from Parent Company’s Network Sale

Alberto Griselli, CEO of TIM Brasil, indicated on Thursday that Telecom Italia’s agreement to sell its physical network could significantly benefit its Brazilian operations. Speaking to Reuters at an innovation and technology event in Rio de Janeiro, Griselli emphasized Brazil’s importance to the group, calling it the “crown jewel.”

TIM Brasil is Telecom Italia’s main revenue generator, contributing approximately 35% to its earnings before interest, taxes, depreciation, and amortization (EBITDA). This share is expected to grow following U.S. investment firm KKR’s recent approval from the European Union to acquire Telecom Italia’s fixed-line network.

TIM Brasil invests around 4.5 billion reais ($837.8 million) annually. With Telecom Italia’s network sale, TIM Brasil anticipates fewer restrictions from its parent company, providing greater investment flexibility.

Griselli explained that as Telecom Italia reduces its debt through the sale, TIM Brasil will gain more flexibility in its capital structure, allowing for more strategic investments.

Following the deal’s antitrust approval, Moody’s upgraded Telecom Italia’s credit rating to Ba3 with a positive outlook.

Griselli’s comments highlight the potential for increased investment and growth opportunities for TIM Brasil as a result of Telecom Italia’s strategic moves.