Fly to the Telecom Italia stock market after the agreements with Santander and Google


Just yesterday we were reporting among the sectors to be purchased on the Italian Stock Exchange the telecommunications that in Italy are practically almost only Telecom Italia (TIT).

Even with a certain amount of randomness today, Telecom Italia is certainly one of the shares to be purchased, even in the form of savings.

It was the definition of the agreement with Santander, another of the actions to put in the portfolio, to make the stock take off on the Milan Stock Exchange.

A very promising joint venture

Telecom Italia and Santander have indeed announced that they have reached a joint venture agreement on consumer credit.

A symbiosis that will allow the main telephony player in Italy to reduce the debt by around 500 million, this at least according to the presentation slides detected by the Telecom Italia website.

The joint venture will be named "TIM Presto" and will be held by 49% TIM and 51% by Santander.
The large Spanish bank (No. 1 in Europe) will express the managing director and financial director, while TIM will be responsible for appointing the president and the sales manager.

The objective of the new structure will be to provide the vast audience of Telecom Italia customers with financing plans for the purchase of fixed and mobile devices.

The agreement also includes the offer to Tim customers of financial and insurance products, which under the auspices of the agreement players will expand and diversify the telephone group's revenues.

The trade agreement will start operating at the beginning of 2020 next year, while it will only be fully operational next July.

Telecom Italia in partnership with Google for the Cloud

But this is not the end of the reasons that make us think that with TIM you will be able to earn money on the stock exchange, there is also the very recent agreement with Google.

Telecom Italia has indeed signed a pre-agreement with Google Cloud to host the same Google Cloud at its new data centers. Not only will the corporate TIM commercial network offer Google Cloud services to its corporate customers.

Why fly to the Telecom Italia stock exchange?

Within this project TIM will constitute a NewCo that will control 22 data centers.

The staff will be trained directly by Google.

This will accelerate the development of private, public and hybrid cloud services for corporate customers and ICT / system integration services.

The forecasts are very optimistic: it is assumed that the newco will have 500 million in revenues already in 2020 and will travel towards the goal of 1 billion sales and 400 million ebitda by 2024.

Not only that, from an Equita report we learn that:

"The newco can be valued by selling a minority to a fund or market. Assuming prudently a multiple of 10-15x EV / EBITDA 2020 (in the absence of detailed information on the revenue mix), on an EBITDA in the 150-200 mn area to 2020, a significant value could emerge for TIM (at least 10%) ".

And here, we add that if a title like this were offered on the market, everything will have to be done to see that at least one lot is assigned.

This is because it could really be an opportunity to earn a lot of money on the stock market thanks to an IPO, as happened in the old days of the New Economy.

It is almost useless to point out that Google has always been one of the titles to keep in the portfolio and absolutely one of the best shares listed on Wall Street.


Analysis and previous articles on Telecom Italia

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