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Gruppo TIM, formerly known as Telecom Italia S.p.A., is a leading telecommunications company in Italy in terms of revenue and subscribers. It has headquarters in Rome, Milan, and Naples. Founded in 1994 as a merger of several state-owned telecom companies, Gruppo TIM services over 114 million customers worldwide and has over 51,000 employees as of 2019. The company reported nearly €18 billion in revenues in the same year.
In 1995, soon after its founding, Telecom Italia grew rapidly and branched into the mobile arena by creating Telecom Italia Mobile. It also released its internet network (Telecom Italia Net) and rechargeable phone cards with SMS capabilities between 1995-1996. The company went private in 1997 and was transformed into an extensive multimedia group, housing popular channels such as La7 and MTV.
Gruppo TIM also has a significant presence in South America, operating as TIM Brasil in Brazil and Telecom Argentina Group in Argentina and Paraguay. However, its international expansion hasn’t been without controversy.
In 2012, the Brazilian National Telecommunications Agency alleged that TIM was intentionally dropping customer calls on its unlimited time prepaid plan, which charges customers each time they make a new phone call. This resulted in a lawsuit filed against the company, asking that it cease selling mobile phone lines in Brazil and pay a fine for damages incurred by consumers.
Despite this controversy, Gruppo TIM has persevered. As of 2021, Gruppo TIM sponsors Italy’s Seria A football championship and actively incorporates sustainable practices into its operations. The company has also set social goals for itself, aiming to achieve 29% of leadership positions being held by women by 2024.
Telecom Italia Stock History
Telecom Italia stock (ticker: TIT) is traded publicly on the Borsa Italiana Stock Exchange. As of May 2022, the company has a market cap of €5.7 billion, with 21,357,258,195 shares outstanding. Between 2020 and 2022, the maximum share price was €0.486, and the minimum share price was €0.248 for ordinary shares. Between January and April of 2022, over 13.7 billion shares were traded with a turnover of €4.581 billion.
There are two types of TIM shares available: Ordinary and Savings shares. Between 2015 and 2018, only Savings shareholders received a dividend, which was €0.0275 per share each year. In 2019, Ordinary shareholders also received a dividend of €0.010 per share. As of 2022, TIM stock has not been split for either Ordinary or Savings shareholders.
TIM stock has generally experienced a downward trend between 2017 and 2022. It reached a high price of €0.90 on May 15, 2017, and sat at €0.27 on May 4, 2022. During this time, the share price experienced several price fluctuations, the largest being a fall from €0.52 on February 27, 2020, to €0.29 on March 16, 2020. However, the price has generally stayed stagnant since the start of the COVID-19 pandemic in March 2020.
How to Trade Telecom Italia Stock
There are several factors to consider when trading TIM stock. Leading among them are new regulations and legislation that could affect its operations in its leading markets, Italy and Brazil. Such regulations could impact taxes, quotas, mergers or acquisitions, and other strategic objectives.
Another critical factor to consider is the economic situation in TIM’s markets and consumer demand. According to the company’s 2020 Annual Report, data traffic volumes doubled in just a few days at the beginning of the COVID-19 pandemic, which pushed the limits of the company’s infrastructure.
However, it achieved positive results. The pandemic also forced the company to address another issue in Italy: homes and businesses with no broadband connection. Gruppo TIM expanded its services to over 5 million additional customers as a response to this.
Before trading Telecom Italia stock, a final consideration is its environmental and sustainability efforts. Consumers are demanding more sustainable services that leave a smaller carbon footprint. Telecom Italia S.p.A. is taking a proactive approach to its green efforts. It’s a member of several stock market indexes focused on corporate social responsibility, such as the Dow Jones Sustainability Indexes and the FTSE4Good. The company also plans to achieve carbon neutrality by 2030 and net zero emissions by 2040.
Telecom Italia Competition
TIM’s top competitors include other telecommunications conglomerates such as Orange, Vodafone, and Telefonica. All of these companies are publicly traded. Orange reported €42.52 billion in revenue in 2021, Vodafone reported €43.81 billion in the same year, and Telefonica reported €43.08 billion in 2020.
Telecom Italia Periodic Earnings
The TIM Group reports its earnings to investors quarterly, and its fiscal year runs from January through December. Dividends are paid in June of each year.
Why Trade TIM stock with Avatrade
There are many reasons why you should consider trading stocks via CFDs with Avatrade.
- International regulation: Avatrade is subject to and complies with relevant international regulations and directives.
- Leveraged trading – a favourite tool for many CFD traders, leveraged trading can help you to maximize your returns even when there are only small price changes. With Avatrade, you can trade TIM stock with a leverage of up to and enjoy higher profits. Note that there are risks involved with leveraged trading, as with any trading.
- Ability to short sell Telecom Italia stock – as with all other CFDs, at AvaTrade, you can go long or short sell Telecom Italia stocks based on what’s happening in the markets.
- Automated trading solutions: Avatrade offers automated trading solutions that make investing simpler and quicker.
- Competitive spreads – maximize your profit margins by trading Telecom Italia stocks alongside other stocks’ CFDs with minimal cost.
- AvaProtect risk management solution – a powerful tool that protects your trading positions against losses. Available on specific financial instruments.
- Social trading via AvaSocial – an innovative social trading application that allows you to interact with other registered traders at Avatrade in unique ways. (Currently not available in the European Union).
- Advanced analysis from the Trading Central – enjoy advanced detailed stock analyses from our Trading Central.
** Disclaimer –While due research has been undertaken to compile the above content, it remains an informational and educational piece only. None of the content provided constitutes any form of investment advice.
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