TIM S.A. (NYSE:TIMB) Q3 2022 Earnings Conference Call November 8, 2022 8:00 AM ET

Company Participants

Alberto Mario Griselli - CEO

Camille Loyo Faria - CFO

Conference Call Participants

Marcelo Santos - JPMorgan

Diego Aragão - Goldman Sachs

Leonardo Olmos - UBS

Marco Nardini - XP Investments

Daniel Federle - Credit Suisse

Operator

Good morning, ladies and gentlemen. Welcome to TIM S.A. 2022 Third Quarter Results Conference Call. We would like to inform you that this event is being recorded and all participants will be in a listen-only mode during the company’s presentation. There will be a replay for this call on the company's website. [Operator Instructions]

We highlight that statements that may be made regarding the prospects, projections and goals of TIM S.A. constitute the beliefs and assumptions of the company's board of executive officers. Future considerations are not performance to warranties. They involve risks, uncertainties and assumptions as they refer to events that may or may not occur. Investors should understand that internal and external factors to TIM S.A. may affect their performance and lead to different results than those planned. [Operator Instructions]

Now, I will turn the conference over to the CEO, Mr. Alberto Griselli, CEO of TIM S.A.; and to Ms. Camille Faria, Chief Financial Officer and Investor Relations Officer, to present the main messages for the third quarter of 2022.

Please Mr. Alberto, you may proceed.

Alberto Mario Griselli

Good morning, everyone, and thanks for attending our results conference call. I'm pleased to say we had another great quarter. We are presenting strong numbers in all lines. We are growing solidly and maintaining our high level profitability while delivering all the transformational initiatives we plan for 2022. TIM is now a bigger and better company. Also the next generation TIM path is just beginning. We move with great strides towards our goals.

In the third quarter, our top line grew more than 24% year-over-year. Our EBITDA also presented great momentum accelerating to nearly 25% yearly growth, which led our margin to exceed 48%. For year-to-date figures, EBITDA minus CapEx rose 25%, with a cash flow margin above 25%. Until September, we announced close to BRL 1 billion in interest of capital, and we are very comfortable to fulfil our remuneration guidance of BRL 2 billion.

Strategic initiatives are advancing according to plans. On 5G, our smart rollout approach is giving us leadership in coverage where it matters the most to TIM. Our integration process is evolving rapidly and we are already benefiting from it in multiple forms. Essential phases of the integration have already been completed.