Telecom Italia S.p.A. - ADR (Representing 10 Ordinary Shares)

Q1 2026 headline: fully in line; guidance confirmed (execution on track) - Group revenues +1.4% YoY to ~EUR 3.3bn; EBITDA after lease -2.7% YoY to ~EUR 0.8bn. - Reduction driven entirely by MVNO phasing (not underlying demand deterioration). - Management reiterated full-year guidance confirmed, with confidence in a back-end loaded EBITDA after lease profile.

MVNO transition: expected to fade in H2 (key driver of earnings shape) - MVNO impact in Q1: about EUR 54m lower revenues and ~EUR 50m lower EBITDA after lease vs last year. - MVNO revenues expected to stabilize at ~EUR 45m per quarter in H2 (normalized run-rate, closing the gap). - Domestic EBITDA after lease contribution from H2 expected to rise from ~19% in Q1 to ~29–31% by Q4, helped by MVNO stabilization plus other factors.

Domestic “underlying” strength + recap of commercial actions (good trend masked by MVNO) - Domestic: total revenues -0.9% YoY to ~EUR 2.2bn, but service revenues flat; excluding MVNO, domestic performance shows +1.5% total revenue and +3% service revenue growth. - EBITDA after lease: -8.2% YoY, but +4.5% excluding MVNO; CapEx ~EUR 0.2bn (~9% of revenues), improving EBITDA after lease minus CapEx +4.1% to ~EUR 0.2bn. - Price-up/backbook repricing: >4m customer lines repriced in Q1; early evidence that churn remains controlled and ARPU up (mobile +1% YoY, wireline/fixed +5.4% YoY). - New opportunity: launch of TIM Premium (positioned as performance/AI-enabled tier for higher willingness-to-pay segments). Upside is monetization; execution risk is churn/competitive response.