Good morning, ladies and gentlemen. Welcome to TIM S.A. 2021 Q4 results conference call. We'd like to inform you that this event is being recorded and all participants will be in listen only mode during the company's presentation. There will be a replay for this call on the company's website. After TIM S.A. remarks are completed, there will be a question and answer session for participants. At that time, further instructions will be given. 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 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.
Should any participant need assistance during this call, please press star zero to reach the operator. Now I will turn the conference over to Mr. Pietro Labriola, CEO of Telecom Italia, for his message of greeting. Afterwards, I will turn the conference over to 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 Q4 of 2021, Oi update and the new guidance. Please, Mr. Pietro, you may proceed.
Hi, everyone. I'm back to share a few words with you. First, I want to thank all the team in Brazil. During the years, wonderful years, I served as COO and CEO. I could count on great teams, fully committed and focused on delivering what we were promising internally and externally to all stakeholders. 2021 results were no different. We accomplished all the goals we set ourselves to pursue. You will hear from Alberto Griselli, my friend and the new CEO, how our financial and ESG guidance were met in a year still full of uncertainties and impacts from the pandemic. Although my cycle in Brazil is closing for now, as CEO of the group, I will continue supporting the strategy and operation in Brazil. I'm convinced we'll make TIM the preferred operator in Brazil for all stakeholders, clients, employees, and investors.
Initiatives like Oi's acquisition, the customer platform partnerships, and the revolution in the customer experience give me this certainty. For now, it's a farewell. I'm leaving you in the capable hands of Alberto and his team. Still, I will always remain available to discuss the future of TIM Brasil, a great future. Alberto, now it's up to you. Good luck, and I will miss you, all of you.
Thank you, Pietro, for the confidence and support during the past three years. I will lead this company to carry on your legacy and further advance the development of TIM Brasil. Good morning, everyone. Thank you for attending our results conference call. As Pietro just mentioned, this last year was still full of uncertainties and impacts from the COVID pandemic. Also, the macro environment is not helping. On the contrary, inflation, for example, impacts our costs and reduces the available income of our clients. Despite that, we managed to post strong numbers, reaching all our targets. Our strong execution continues to make a difference and led us to post solid results in the Q4 and close the year at a healthy speed. Our mobile strategy from volume to value continues to pay off.
ARPU grew 6% year-over-year in 2021, with service revenues expanding mid-single digit versus 2020. EBITDA also grew mid-single digit, which helped us expand our operating free cash flow by BRL 1 billion and reach more than BRL 6 billion in total. In 2021, we launched the Ampli partnership while maintaining a robust commercial pace with Sesi. All in all, we closed 2021 above our target of BRL 100 million for customer platform revenue. In the Q4 , we had two important events. The 5G auction, where the outcome was very favorable to the sector and TIM. We also had the closing of the deal with IHS. Now we are getting the company up and running to help us re-accelerate in residential broadband. We are also delivering remarkable evolution in our infrastructure projects.
Journey to Cloud is proceeding well and is already helping us improve customer experience. We successfully prepared our network to receive the customers from the deal with Oi. We will have the chance to talk more about the transaction in the second section of our presentation. 2021 meant remarkable achievement in the ESG arena. We reached 100% of our energy coming from renewable sources and a 94% reduction in direct and indirect emissions. We took a leading position in diversity initiatives through the Mulheres Positivas partnership and implementing employability programs for minorities. We were included in the new diversity indexes and maintain our position in the B3 Sustainability Index. Detailing our revenue dynamics. In 2021, we saw positive mobile and fixed service contributions with all significant lines improving.
Mobile service revenues grew 4.7% year-over-year, while fixed service was up almost 9%, consolidating our service revenues expansions at 5%. Postpaid customer platform and TIM Live were the elements driving this performance. Postpaid revenues closed 2021 representing almost 60% of our service revenues and growing 5.4% during the year versus 2020. Customer platform totaled nearly BRL 120 million, becoming a relevant contributor to growth. Despite the challenges in the second half of the year, TIM Live continued to support revenue expansion. It rose almost 15% during 2021. Those results, once again, show that our choice to focus on a value strategy is working well. We have been outperforming our peers in mobile ARPU dynamics for many quarters.
Our ARPU reached BRL 26.4, following a 6% rise during 2021. At the same time, we reduced voluntary churn in postpaid, which also helped improve postpaid net additions. It is worth highlighting that we sustain our offer differentiation through innovations and go-to-market changes while reinforcing our positioning. We are reinforcing our well-known and long connection with the music scene, and we are back to sponsoring large events and festivals. In TIM Live, we were also able to improve ARPU by approximately 4%, while the customer base grew more than 6% year over year, with FTTH being the key adoption driver. It is essential to highlight the transition to a new rollout model, renting instead of building. We expect that utilizing specialized network companies will produce an acceleration of coverage.
Still, under broadband services, we started to experience a more conflicted competition environment since the beginning of the second half. In our case, we are trying to differentiate by launching ultra-fast download and upload speeds with new content. Finally, we were granted recognition for the best video and video conference experience, now being featured in our new commercial ad campaign. We also improved NPS metrics, reduced Anatel's complaints, and ranked first in the satisfaction ranking from resolutions given to customers' demands at Anatel. Those were the outcomes of a strategy based upon offer differentiation and customer experience. I just mentioned that customer platform initiatives are proving to be an exciting opportunity. They also help differentiate our offers and improve our value proposition to customers. A quick recap of our strategy. The framework is composed of two models of partnership.
The strategic partnership, where CAC fees and equity stakes remunerate TIM, and the commercial ones, where we are remunerated monetarily per video views and clicks for advertising campaigns and data intelligence services. Both models leverage TIM Insights and TIM Ads platform to target the suitable cluster inside our base and impact them through channels within their journey as a TIM client. Under this framework, we are already operating in some verticals with robust results. As mentioned before, we sum BRL 120 million in revenues in 2021, with contribution for mobile advertising and financial and education services. We earned subscription bonuses equivalent to an equity stake of 4.4% in C6 Bank. We also doubled our enrollment rate for undergrad and open courses sequentially to reach more than 50,000 students total.
Our audience for mobile advertising surpassed 27 million people, which give us the ability to engage with them in multiple forms. We continue working to grow this ecosystem of partners. To do so with greater accuracy, we hired a financial advisory to help us analyze the valuation of the partnerships under development and future opportunities. Moving to infrastructure, we saw our 4G coverage leadership be confirmed during 2021. We have completed 85% of our target agreed with Anatel to cover all the cities of Brazil. At the same time, we are preparing our network to receive Oi’s customers. As a matter of fact, we modernized 1,400 sites and implemented a capacity increase using Massive MIMO in 1,600 sites. Our network sharing agreement with Vivo ended the year meeting its goals.
We expanded 4G coverage to more than 350 cities, and we are conducting the test for a full single grid in 21 cities. Those tests will be very relevant to define the future of the agreement, and if and how we can include 5G in this sort of sharing. On the IT front, 2021 was pivotal for the journey to cloud transformation. We closed the year with 90 systems running from the cloud. We migrated more than 3,500 servers. This means that above 40% of our processing power is already coming from the cloud, improving operational efficiency and customer experience. Another element of our strategy that keeps helping us become more efficient is the digital transformation process. During 2021, we improved all our digitalization metrics. Recharges in digital channel increased 70 percentage points. Collection unitary costs reduced 12.4%.
E-billing penetration increased almost 6 percentage points. Pix payments reached 16% of our invoice payments. Now I pass the floor to Camille, our CFO, to give more color on our financial results.
Thank you, Alberto, and good morning, everyone. Since we were already discussing efficiency, let's start with cost trends. Here it is essential to make a disclaimer. You will find in our documents some normalizations. The most relevant one is related to the sale of I-Systems. With the closing of the deal with IHS, we had a positive impact of close to BRL 800 million in our EBITDA. To maintain comparability, we will analyze only normalized figures. Our OpEx ended 2021 up by 4.8%, significantly below inflation, but materially impacted by the pandemic. If you recall, the only quarter that our costs were above the low single digit range was the Q2 . Exactly when the comparable base was significantly impacted by the pandemic.
It is easier to understand and eliminate those temporary effects by comparing the 2021 OpEx with 2019. Under this comparison, our costs and expenses stood almost flat, showing our capacity to control costs and implement initiatives that helped TIM remain the most efficient operator in Brazil. Consequently, our EBITDA reached more than BRL 8.7 billion, growing 4.4% year over year, and maintaining EBITDA margin above 48%. In the Q4 , we achieved the highest margin in our history, 51%. Net income also grew solidly up close to 20% year over year. Our CapEx ended 2021 right below our target at BRL 4.38 billion. This number, of course, does not consider the spectrum acquired during the 5G auction.
We booked another BRL 3.6 billion in CapEx from the licenses and obligations related to our acquired frequencies. This BRL 3.6 billion was fully booked for accounting purposes, but only a very small amount was disbursed in 2021. Most of the remaining cash out will happen in 2022 and 2023. In this context, operating free cash flow for the year stood at a record high of BRL 6.1 billion, which grew more than 30% and drove our net debt down by more than 30%, and a cash position of BRL 9.8 billion. In 2021, we almost completed our financing plan for the extraordinary payments that we will have in 2022.
We raised BRL 3 billion in new debt, and we received BRL 1.1 billion for the sale of 51% of the shares in I-Systems. Now I hand the call back to Alberto to complete the discussion related to the 2021 results and move forward with an update on the acquisition of Oi mobile assets.
Thank you, Camille. As I mentioned in the beginning, despite the challenges imposed by the external environment, we were able to deliver all our targets. Service revenues grew at 5%. EBITDA growth at 4.4%, and margin at 48.4%. CapEx at approximately BRL 4.4 billion, and EBITDA minus CapEx on revenues at 24%. Those results were accomplished while we improved our customer experience, enhanced TIM brand recognition and positioning, brought innovation to our clients, and opened new avenues for growth. I'm proud of what we deliver, and it is an excellent manner to thank Pietro for all the support and guidance he gave us during his years as CEO of TIM Brasil. I'm sure he will continue to support us in the new position of group CEO. Now, let's move to the second section of today's presentation.
Our update starts with a quick recap of the approval process with the regulators. Both Anatel and CADE approved the transaction with certain conditions. Most of them were behavioral remedies with one structural condition. The buyers will have to offer 50% of the acquired sites to the market. In our evaluation, the regulators and the parties involved managed to build a scenario where the remedies guarantee access to infrastructure, consumer will have the freedom to choose from three strong operators, and rivalry among them will be maintained. Still, buyers and seller will create significant value from the transaction. However, to generate value, first we need to integrate properly and promptly.
There's no doubt that the integration will be complex, but we have been planning this for a while, so we have a solid plan, and we are ready. We expect the closing to occur before May, and 30 days after we assume to be able to start the network migration. This process should take approximately three months to bring all Oi customers to our network. Full spectrum migration should take longer, but we expect to start using the acquired spectrum sooner rather than later. IT system migration should start in the Q2 after the closing, of course. We will migrate customers in waves to have a smooth process and minimal disruption to the clients. The entire process will be long, ending most likely close to the 12-month mark from the closing.
I know the discussion around synergies and value creation from this deal has been eagerly expected by the market, but there is still much information to be confirmed, and we feel more comfortable sharing our estimates once we have the closing and all the financial figures from the SPE and a better understanding of the asset base we are receiving. Nevertheless, we can share how we imagine things will occur over time. We estimate that the full effect of the transaction will only be perceived in 2024. Since the closing will occur in the Q2 , there will be a delay in all the expected effects for 2022. Revenues and OpEx normalization will be pushed into 2023. Between 2023 and 2024, the impact of the delay is significantly smaller, but there is some still.
In 2024, we expect migrated clients to contribute with revenues that would account for at least 50% of our net service revenues and more than 20% of the total EBITDA. Migrated clients will arrive with a higher margin, but since we have the TSA and some other integration costs, the endpoint of this margin would be only achieved in 2024. We are arriving at the end of our presentation, so we need to start putting together all those blocks that will compose the basis of our new strategic plan and consequentially, our guidance. We have very robust operation, and the 2021 results are clear evidence of the strength and health of the company.
We are plugging on top of this machine a set of opportunities such as 5G rollout, the customer platform development, a new approach to FTTH with the help of I-Systems and infrastructure projects. Those are evolution to our business model. They are not transformational. The acquisition of Oi's mobile assets will transform this company for the better. It will work as an accelerator to our plan to become the preferred mobile player in Brazil. Additionally, all those moving pieces will impact our numbers in different ways and time frames. To help you understand and bridge today's reality to what things will look like in the future, we present two simple models showing what will happen in 2022. From those two charts, we see the positive impact coming from Oi assets. Also, I-Systems promised positive impact at free cash flow level is confirmed.
In the first year, 5G is taking a toll as expected for any new technology that we start to deploy. Based on this explanation, we present a new guidance that is not totally comparable with the previous one. Last year, we expected Oi deal to close in December, while 5G auction and I-Systems transaction weren't included. If we were to exclude those elements on a like-for-like comparison, all the metrics would be on track. To conclude, we expect our service revenues and the EBITDA to grow double digit in the short term and long term. CapEx will remain below the BRL 5 billion range in the coming years, taking CapEx on revenues ratio below 20%, and EBITDA minus CapEx on revenues to go over 29% in 2024. The future looks bright with many opportunities for us to explore. We already talked too much.
Let's open the floor for questions. Please, operator.
Thank you. Now we'll begin the Q&A session. First, we'll take questions from analysts, followed by general public, both in English. If you are listening through webcast, your questions can be sent by chat. Our first question comes from Bernardo Guttmann with XP Investments.
Hi. Good morning, everyone. Thanks for taking my question. I have two questions here. The first one about the deal with Oi. I do understand that you guys prefer to wait for the closing to give us the NPV of synergies. I was wondering if it's possible to have some color about the goodwill that this transaction may generate. My second question is related to network sharing with Vivo. How is the project evolving, and what we can expect in terms of OpEx and CapEx avoidance for this year? Thanks.
Bernardo, let me start with the first one, which is about the network sharing. There is some echo here. Let me just make sure that is fixed. Okay, Bernardo, going back to the network sharing agreement. As we just said, the project is going well.
The expansion of coverage was quite successful, and we are moving now into the second phase of the project whereby we're looking at synergies. In the second phase, we run a pilot with Vivo that's been successful. It's a limited number of cities at this stage, and there is a plan to reach a regime of something about 1,600 cities. The project is up and running. I would say that we are committed to it, but this year, we also have a number of competing activities on the network side. Basically, we need to integrate the Oi assets, which is a huge effort on our side. We need to launch 5G in June, July.
We are deploying massively on our network side. It's up and running. It contributes a significant NPV in the long term, and we are now deciding with Vivo the pace of it in order to accommodate for the other activities that are quite important in our industrial plan, 5G and the integration. On the second one on the deal, the first point, we understand that you are eager to know the NPV of the synergies, and we are more on the cautious side because the deal is going to be closed soon, but it's not closed. I will hand it over to Camille to discuss a bit about the goodwill.
Thank you. Okay. In terms of the benefit coming from the goodwill, yes, we expect to have tax benefits coming from goodwill. The exact number we'll only know once we have the final financials of the SPE that we are buying. That's why we want to wait for the closing to release these numbers to the market. But we expect it to be a significant number and in the neighborhood of a few BRL 100 million in net present value. But the more precise number we will release once we have the financials from the SPE that we are acquiring.
Thank you, Camille. Thanks, Alberto.
Our next question comes from Leonardo Olmos with UBS.
Hello, everyone. Good morning. My questions will be focused on mobile strategy. The first one is regarding the past 4Q. We noticed that net adds were over 70% concentrated in the Q4 . Can you discuss if this is a shift on your strategy and if you will be fighting for more market share in 2022? Thank you.
Leonardo, hi. First point, there is no shift in the strategy. Our strategy is from volume to value, and we are pursuing it on different aspects. I think that when you look at our past performance, you see that this strategy has been delivering significantly in terms of ARPU growth. We've got a number of quarter where we managed to grow our ARPU on both segment consistently. This is just one piece of the equation. When you look at the other piece of the equation, there is another element which is quite important, which is the churn of our customer base. We've been working extensively to improve the levels of services and our commercial policies.
We in the Q4 managed to reduce substantially the voluntary churn of our customer base. As a matter of fact, we are currently at the lowest level of TIM Brasil ever. When you combine the top line growth, which translate into the KPI, which is the ARPU growth, and when we factor in the reduction of churn, this delivers the increased net additions that we are seeing on the Q4 . The strategy is confirmed, is the same from volume to value. We are working on both sides of the equation, basically, monetizing our customer base, and therefore ARPU increase on one side and working on churn reduction, and that deliver the net additions.
There are some specific aspects related to the Q4 , which has related to the component of consumer versus business growth additions. I can confirm that when we look at the January and February performance, we are moving at a stable pace. This trend that you are seeing is confirmed.
Great. Thank you. Just a quick follow-up about 2022. It's definitely gonna be an interesting year. You're gonna have the incorporation of Oi mobile, the interest of regional players with 5G. Considering all that, what would be. If this is a fair question, what would be your growth in 2022 if we were to disregard Oi mobile's integration?
Leonardo, this is an interesting question because at the end of the day, we already don't look at it this way because we look at the overall number with Oi inside. Oi is confirmed, it's happening. We've got a double-digit growth target on our MBO. We need to get there whatever the mix of the component Oi versus non-Oi is. Now, to give you a bit more color, we look at the budget as an overall figure, so without this distinction in terms of what is coming from what. When we look at the Q1 , which is definitely without Oi, what we see is that we've got a good pace.
We enter 2022 at a good pace, and on the revenue side. This reflects the balanced growth of customer base and ARPU growth and an improvement in prepaid. If you look at prepaid in the Q4 , you see that it's the only line of our revenues that is going. It's not growing, actually, it's decreasing. When we go into a bit more detail of what happened, you will see what you won't see, but I will tell you that there is a November, which has been impacted by a specific campaign that we did, where we tried to increase the number of rechargers. But by doing so, we cannibalize the recharges.
All in all, there was hitting our result in November. December, January, and February, up to now, we see a positive performance of prepaid. All in all, we see that we are entering at a good pace in 2022.
That's great to hear. Thank you very much. We're all looking forward for next updates. Thank you.
The next question comes from Diego Aragão with Goldman Sachs.
Hi, good morning, everyone. Thanks for taking my question. First, I just want to congratulate Alberto for your promotion to CEO. Glad to see you in there. I'm, you know, really excited and looking forward to keep working with you, Alberto. Look, I know that there are like several data points on the Oi BR transaction, but I want to explore a little bit more, you know, these. Maybe just to start, you know, can you detail to us what are the next steps for the transaction to be concluded?
Secondly, you know, if we would think about the NPV of synergies you are expecting, can you just help us to quantify those synergies, maybe providing a range, and then also provide a bridge showing the key line items that would compose this NPV of synergies that you are expecting? Thank you.
Let me do, Diego, a brief introduction, then I will hand over to Camille for additional details. In terms of next step, it's very simple. The Oi just created the three SPE that each buyer will receive. Now we are auditing the correct functioning of these entities for us to be sure that we get what we are expecting to get. When you look at the synergies, unfortunately, again, that's something that we are eager to share with you, but not at this stage. Generally, we define as a more general statement in two main sources of revenues, the technical side and the commercial side.
Technical side is related to the increase of spectrum that translates into a lower OpEx, CapEx. On the commercial side, we basically factor in the more rational competitive environment and the positive effects on our customer base from increased service quality. There is the third one, actually, that Camille just mentioned, which is the goodwill. When you look at all this, a big chunk comes from the technical side. I will hand it over to Camille to be more precise on these figures or as far as we can go.
Okay, thank you.
Thank you.
Thank you, Alberto. I actually don't have much more to add. As Alberto said, in terms of what's still necessary for us to proceed with closing, it's mainly internal bureaucratic steps, nothing that really depends on third parties. These steps are mainly related to us, I mean the special purpose company being created and us being able to audit that we're actually paying for what we thought we were buying. It's creating the SPE, having financials, us being able to look at those financials, and then being comfortable to go ahead with closing. Internal, no worries there. It's just a matter of time.
In terms of the synergies, again, we would love to have been able to share the value of the synergies with you in this call, but we just didn't feel that we had enough information to be precise. We preferred to wait for, again, the SPEs to be fully created, to have their own financials and us having the final numbers so that we can calculate the synergies and share them with the market. As Alberto mentioned, they come mainly from three areas.
Most of the synergies in the technical network, synergies in the commercial, and lastly, the goodwill, which in the previous question, I already mentioned that is in the neighborhood of a few BRL 100 million, so quite significant. That's the goodwill, of course, standalone. The other ones are much larger, and we will share them with the market in proper time.
Maybe just a quick follow-up here, Camille. Thank you, and thanks for that. I guess, if I would just, you know, put like some numbers as a percentage of, you know, the total NPV, how much the technical side would represent. I mean, it's like 60%, 70% or less than 50%? I just want to get a sense because for this one in particular, we can, you know, we can make the math, right? Then, we can work like with some scenarios to calculate like the commercial, which should impact your business much more in the midterm to long term and the goodwill, right?
Yeah. Well, we can say that we expect the first portion of the synergies, technical network, to represent roughly two-thirds to 70% of the total NPV of the synergies. Please keep in mind that, as you know, we are the player getting, let's say, most of the spectrum, most of the network, most of the clients. It's understandable that, on the technical side, the synergies are strong for us.
That's amazing. Thank you, Camille.
The next question comes from Frederico Mendes with Bank of America.
Hello, good morning, everyone, and thanks for the call. I had two questions as well. The first one is a follow-up from what Leo asked. In terms of the strategy, you know, I mean, your ARPU is already, you know, relatively high to the sector average at BRL 26. Obviously, ARPU has a lot of limitations, so it's hard to look at it, but it is the info that we have. Basically, you know, obviously now we saw an improvement in that ad, but only look at ARPU and this upselling in our base, how much more, you know, you think you can grow considering that the increase over the last years have been significant? This will be my first one.
My second one, back to Roy. I understand all of the limitations, but just when you mentioned here that in a presentation that the margin of transfer clients, it looks like something like 65%-70% 2024. Just wondering if you're assuming any potential ICMS reduction gains here or that's purely operational? Thank you very much.
Fred, let me take the ARPU versus base question. When you look at, so basically you got the net attach, the ARPU, which is growing, and we expect it to further grow. I will tell you what the areas that we are working to make this happen, both on postpaid and to some extent prepaid. We don't look at ARPU, we look at spending, but we are working on that as well. For the net additions, this is the combination of healthy sales, but pretty stable now and churn reduction.
When you look at the ARPU, we basically work on postpaid primarily on a number of different levers for it to grow. The annual adjustment that we are going to implement this year like we did last year according to a more for more strategy. Last year, I don't know if you remember, we did the price adjustment basically in March, April. That was before the rise of inflation or the quicker rise of inflation. We are going to repeat this in March, April this year. It's gonna start in March, but the full impact are gonna be in April.
This is one way we look at this. The other way we are working, and we are very satisfied with the results. It's the migration that is happening. It's a way we work our customer base. We look at the usage profile. We migrate customers from one offer to another one, and this provides extra benefit to the customer and extra ARPU to us. This is the second lever. It's working well. It's producing results, so we are monetizing our customer base.
Price adjustment, there is the migration and then, of course, there is the input that is coming from the data platform strategy, which is wider in scope, but creates some extra revenues for us by monetizing our customer base. When you look at prepaid, it's a bit more tricky because it's more difficult to work the prepaid segment to increase ARPU. Nonetheless, we just implemented a review of our face value, so the lowest face value in Brazil is BRL 10. We just introduced a BRL 12 face value last week, and we're gonna take the BRL 10 out in a few weeks.
We expect that this will gonna drive a bit of the ARPU spending as well. We've got another set of marketing and commercial offer measures that we are implementing the next weeks to increase the usage of the service of prepaid and for the spending. Not the ARPU, because the ARPU is a bit tricky in terms of that segment. This is for the ARPU side. I will hand over to Camille for the EBITDA composition if you don't have any further question on the ARPU dynamics.
Moving on to Oi, sorry.
No, super clear, thank you. Sorry, Camille.
With respect to the Oi marginal EBITDA contribution, most of the growth or I would say almost all the growth that you see between 2022 and 2024 is related to the temporary service agreement that we will have with Oi post-closing. Before, when we were expecting closing to happen in 2021, the full impact of the TSA was being reflected in 2022, so that in 2023 we would no longer have that OpEx with Oi. Now that we are expecting closing in the Q2 of this year, we still have a piece of that expense in 2023.
That 2023 EBITDA contribution from Oi is not, I would say, normalized yet. 2024 is really the first year in which you'll see the numbers fully normalized. That's where you see the growth between 2022 and 2024. With respect to ICMS, no, our 2024 Oi numbers do not take into account any benefit from a reduction in ICMS. If we are able to capture anything from the ICMS reduction, that's an upside to the case that you see in our presentation.
Perfect. Very clear, Alberto and Camille. If I just may a follow-up about the digital partnerships. You know, it looks like in this quarter the two main ones, you know, especially on the financial front and also the advertising, they're flat quarter-over-quarter. We look at education, it's still at a first stage, a relevant contribution here. Just what are the next steps here? Have you reached kind of a ceiling for the two main, these two main fronts? You know, basically what can we expect here for the next quarters? Thank you.
Just a brief introduction, and then I will hand it over to Renato. Basically, C6 is up and running and is going well commercially. Of course, there is a limit we can grow because we are addressing a big chunk of our customer base. We launched a new one, which is Ampli. It takes some time to get speed, and so we are in the ramp-up phase. So to maintain and grow the revenues, we need to close more partnership, and this is within the plan.
Hi, Fred. Thanks for the question. I think your assessment is pretty right. I think on the financial services we have grown a lot our number over the last 12 months, and now we have reached a number which is kind of flat quarter-over-quarter. On the education side, we have launched the partnership in July last year. It's still in the early stages. I would say it's already significant numbers in the education market. We have doubled the numbers of our recruiting on our TIM channel, so we are learning very fast here. We expect to see some good numbers in this partnership in the second half of this year. As Alberto said, we have a pipeline of new partnerships. We have hired Lazard to help us.
We believe there is a good opportunity in digital health. It is a market that was like a fintech five years ago, so there is a potential, very big in our overlap, with our base, which is relevant. We are working with Lazard now to decide among the very strong proposals that we have, which is the partner that we're gonna choose. We are on track to launch, the third partnership on the content area in the Q2 of this year.
Very clear, Renato. Thank you.
The next question comes from Marcelo Santos with JP Morgan.
Hi, good morning. Thank you very much for taking my questions. Could you please discuss a bit on the guidance that you provided? If you could give us an idea of how much would be the organic growth figures that you would be planning, like without the Oi acquisition. Just to have some idea would be interesting. The second, just exploring a bit more the Ampli partnership. You already got like 50,000 students, which is pretty sizable number for, I think for Vasta, sorry, for Cogna. If you look there, they have. That's almost 10% of their student base. Does this indicate the revenues should also plateau if you keep at this level? Or should revenues grow faster than students?
Just wanted to understand better the mechanics here and the business model of the Ampli partnership. Thank you very much.
Hi, Marcelo. Let me get the first one on the guidance. As I was mentioning before, basically we are already working with an integrated budget. Some of the parts that we mentioned on the presentation are all integrated in our budget. This is our target. We do not work anymore with the different components what contributes what. We sum it up, and that is what we need to deliver. If you look at the Oi components, we are going to integrate the revenues that we will know throughout the auditing process for the precise value. That's one of the reason we are not presenting the synergies today.
The EBITDA component of these revenues is what Camille just presented and answered in the previous question. The fact that we are entering the Q1 at a healthy speed, it's the only indication that we have. You will see.
In the next call in terms of organic speed. After that date, we're gonna look at the number as a single target for the company to achieve.
Perfect. Thank you. Ampli?
Regarding Ampli, the 50,000 are the number of TIM customers that have been registered in the Ampli platform for both the graduation as well as the open courses. What's our strategy here, just to give a little bit of more color on this. We offer with Ampli open courses for free to our customer base. They come, they join the platform, and then we do the upselling to the graduation. The 50,000 is already a lake that we have inside of the Ampli platform that allow us to do the migration to graduation. The whole strategy that we have is adding benefit to our base, offering something that generates value to our base, and from there, creating a propensity lake where we can migrate them for a paid service and get remunerated, compensated for that.
We are doing what we call the top of the funnel. We are building this base, we are building this lake, and then we are working actively to migrate, to upsell them to the graduation where the compensation remuneration is, for us. If you have any questions, let me know, regarding the strategy and the numbers here.
No, perfect. It was very clear. Thank you.
The next question comes from Luis Fernando Azevedo with Banco Safra.
Hi, guys. Good morning, everyone. I have a quick question on Fistel. Is there any idea when you'll pay the Fistel portion that was deferred? Regarding Oi, will you assume part of this Fistel obligations, or if you are adjusting the price of the acquisition? That's the first question. Thank you.
With respect to Fistel, of course, we are not paying Fistel because there's an injunction in place. We have our balance sheet ready to pay whenever we need to do so. In our budget, of course, we always count with the scenario that we will have to pay 'cause we have to have our balance sheet and our cash position ready for these obligations. We will follow what will happen with the case and proceed with, you know, with whatever we have to do. Again, we have our cash position here ready for our obligations whenever they become due.
With respect to Oi, I think there are two separate scenarios, and I ask here my colleagues to correct me if I'm wrong, but there is a Fistel over the net adds and there's Fistel over the average base. It really depends on when they become due, right? Everything that's pre-closing, it's an Oi obligation. Everything that is post-closing, it's our obligation. If it's with respect to past net adds, then it's an Oi obligation independently on when they become due from a cash perspective. If it's post-closing related to the average base, then it's the buyer's obligation.
As any usual M&A, it depends on the generating factor for that expense.
Thank you, Camille. The second question that I have is regarding the partnerships. What would be the revenue contributions from these partnerships that you expect in 2024? In terms of % of revenues.
Hi. We actually don't disclose that information. Remembering one thing which is very important here is that part of the compensation comes into revenue and part of that comes in equity. The equity value actually is the most significant one. When we look at the partnerships here and decide the new ones, we look at three vectors. We look at the offer they make to our base to make sure that generates value and add values to our base, the value that is generated through the revenues, and the value that is generated through equity, which is very much based on the likelihood of them becoming successful, becoming unicorn. We are targeting not only the revenue side, but also the equity side, which in our view has a bigger upside than just the revenue.
Okay. Thank you very much.
Ladies and gentlemen, we'd like to remind you, in order to ask a question, please press star one. Without any more questions from analysts, we will now start the public Q&A session from the webcast platform, and the questions will be read. Please, Mr. Vicente, you may proceed.
Thank you. The first question comes from HSBC, Fanny Kanamaru. What is the impact of I-Systems deconsolidation on EBITDA in 4Q 2021? And in 2023, 2024, what would be the TIM's consolidated margins look like versus full year 2021, considering Oi deal, I-Systems deconsolidation and 5G costs?
I think this question to Camila. Camila, please go ahead.
Thank you, Vicente. With respect to the first question, there are mainly two impacts in our EBITDA. There are mainly three impacts in our financials. Two of them affect the EBITDA. Similarly to the Oi transaction in which I mentioned that we will have a temporary service agreement, in the I-Systems transaction, we also have a temporary service agreement, but in that case, we are the service provider. There's this very small revenue coming from this service agreement. Mainly administrative and other backup services that we are rendering on a temporary basis, but again, not relevant.
The most relevant impact is, of course, the OpEx that we have with I-Systems, and that impacted our Q4 financials in one month and a half since closing happened in mid-November. And then there is the last impact, Which is the CapEx, but that does not impact our EBITDA. With respect to the 2023-2024 one TIM consolidated margins. Again, as Alberto mentioned before, when we look at 2023 and 2024, we really project this company as with all the effects in it. I mean, the Oi deal, I-Systems, 5G, it's all part of our business. It's three.
I mean, when we have 5G core, sometimes that also brings us some savings that we would otherwise, you know, of OpEx and CapEx that we would otherwise have if we didn't have 5G. It's really hard to say what's the standalone I-Systems 5G impact on 2023 and 2024. We really look at this new perimeter that we will have with Oi, with I-Systems and with 5G inside.
The next question comes from New Street, Eduardo Gomes. What is the budget for CapEx in the fiber JV? How much CapEx did you take out of the budget to reflect the deconsolidation of these assets?
We can't really disclose the budget for the fiber JV. We are now a minority shareholder, and the controlling shareholder of that company is a listed company as well. I mean, we can't really give out that number. What I can tell you is that we have roughly BRL 400 million of CapEx savings coming from or of CapEx reduction in a non-I-Systems basis by having done that transaction in 2022. We reduce our CapEx by roughly BRL 400 million because of the I-Systems deconsolidation.
To this respect, we include this OpEx cost that Camille just mentioned, and we take out a larger chunk of CapEx with a positive impact on operating free cash flow and revenues, of course, because of these deals.
Ladies and gentlemen, without any more questions, I'm returning to Mr. Alberto Griselli for his final remarks. Please, Mr. Alberto, you may proceed.
All, thank you for your participation today. I thank you all, the great team that is here with me, to address all your questions. I look forward to meeting you again in the one-to-one sections and the upcoming events like the TIM Day and next earnings call. Goodbye to everybody.
Thus we conclude the Q4 of 2021 conference call of TIM S.A. For further information and details of the company, please access our website, tim.com.br/ir. You may disconnect your line from now on. Thank you once again, and have a nice day.