In This Article:
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Revenue: BRL625 million, down 33% year on year.
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Oi Solutions Revenue: BRL409 million, 65% of total revenue, fell by 24.3% year on year.
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Discontinued Operations Revenue: BRL1.3 billion, with fiber business accounting for BRL1.1 billion.
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Operating Expense Reduction: 38% reduction in operating expenses and investments.
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Routine Operating Expenses: BRL2 billion, a 16% reduction year on year.
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CapEx: BRL108 million, a 41.8% year-on-year reduction.
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Cash Balance: BRL1.8 billion at the end of the period, a 35% increase in the quarter.
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Personnel Costs: Increased by 9.7% year on year due to contract terminations.
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Cloud-Based Services Revenue: Increased by 11% year on year.
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Unified and Collaborative Communications Revenue: Grew by 20% year on year.
Release Date: March 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Oi SA (OIBZQ) successfully restructured its financial debt, reducing net debt and improving liquidity.
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The company completed a capital increase, with credit supporters capitalizing part of their credits, resulting in a new Board of Directors and improved governance.
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Oi SA (OIBZQ) made significant progress in migrating from a concession regime to an authorization regime, reducing regulatory costs.
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The sale of UPI ClientCo to V.Tal was completed, resulting in Oi holding a 27.5% stake in V.Tal, Brazil's largest neutral fiber company.
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Oi Solutions, a core business for Oi, is showing growth in ICT services, with cloud-based services revenue increasing by 11% and unified communications growing by 20% year-on-year.
Negative Points
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Revenue performance was negatively impacted by a 33% year-on-year decline, primarily due to a reduction in non-core revenue.
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Oi Solutions' revenue fell by 24.3% year-on-year, reflecting reduced demand for legacy services and a more selective sales strategy.
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Routine operating expenses were reduced by 16% year-on-year, but personnel costs increased by 9.7% due to contract terminations.
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The company continues to face challenges with legacy services, impacting routine EBITDA negatively.
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The arbitration process related to legacy issues remains unresolved, with no clear timeline for a final decision.
Q & A Highlights
Q: Can we measure the savings from the sales of Oi Fiber, landline telephones, and Oi TV? Also, when do we expect a ruling from the arbitration? A: Regarding discontinued operations like fiber and TV, note 28 in the P&L provides details. The arbitration process timeline is uncertain, but we hope for an initial decision this year, though the final decision may take years.