Telecom Italia S.p.A.

Q1 2026 results broadly “on track”; MVNO transition explains most of the YoY softness - Group revenues: +1.4% YoY to €3.3bn. - Group EBITDA after lease: -2.7% YoY to ~€0.8bn, with the decline “entirely driven” by MVNO phasing (management cites ~€54m lower revenues and ~€50m lower EBITDA after lease from MVNO vs Q1 last year). - Excluding MVNO: domestic trends look strong (domestic revenues +1.5% and service revenues +3.0% YoY; domestic EBITDA after lease +4.5% YoY excluding MVNO). - Outlook: Full-year guidance confirmed; confidence is based on a back-end loaded EBITDA after lease profile as MVNO headwind fades in H2.

Clear forecast profile: MVNO headwind fades; EBITDA after lease accelerates in H2 - Management expects MVNO revenues normalize to ~€45m per quarter in H2 (stable run-rate), aligning the gap vs last year. - Domestic EBITDA after lease contribution mix: from ~19% in Q1 to ~29–31% in Q4 (i.e., significant acceleration in the back half of the year). - Drivers of acceleration: 1) Consumer price-up initiatives contribution, 2) Enterprise seasonality (stronger in Q4), 3) Cost transformation benefits increasingly materializing toward year-end, 4) MVNO stabilization in H2.

Cash generation: negative equity free cash flow in Q1 due to working capital seasonality; net debt unchanged-ish - CapEx: disciplined at €0.4bn (12.5% of revenues). - Equity free cash flow: ~ -€0.4bn (management attributes to typical Q1 working-capital absorption + reversal/impact of advanced public-admin payments collected in December). - Net debt after lease: €7.3bn, leverage 1.99x. - Pre-retirement scheme launched: cash-neutral in Q1; includes a one-off ~€0.2bn provision and aims for ~€60m annual cost savings once fully implemented; approx. 1,000 employees entering preretirement by end of 2026 (up to 5 years early).