• Total Revenue: BRL14.4 billion, a 6.2% increase year-over-year.

• Mobile Service Revenue: Grew by 6.5%.

• Fixed Revenue: Expanded by 6.2%.

• EBITDA: Increased by 8.1%.

• Operating Cash Flow: BRL3.8 billion, a 12.7% growth year-over-year.

• Net Income: BRL1.1 billion, an 18.1% increase year-over-year.

• Postpaid Customers: Over 67 million, a 7.7% growth year-over-year.

• Fiber Customer Base: Increased by 12.9%.

• B2B Revenue: BRL12.3 billion, representing 22% of total business, with a 25.5% growth in digital B2B segment.

• New Businesses Revenue: BRL1.7 billion, an 18.6% growth year-over-year.

• CapEx Efficiency: Slight year-over-year decrease, with a reduction in CapEx over sales by 0.8 percentage points.

• Net Cash Position: BRL2.7 billion at the end of March.

• Free Cash Flow Yield: Close to 10% over the last 12 months.

• Shareholder Remuneration: BRL2.6 billion paid out by April 2025, with a commitment to distribute another BRL2 billion.

• Warning! GuruFocus has detected 7 Warning Signs with VIV.

Release Date: May 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Telefonica Brasil SA (NYSE:VIV) achieved a 7.7% yearly growth in postpaid customers, reaching over 67 million.

• Fiber customer base increased by 12.9%, showcasing strong demand for connectivity services.

• Total revenues grew by 6.2%, with mobile service revenue up by 6.5% and fixed revenues expanding by 6.2%.

• EBITDA increased by 8.1%, reflecting a focus on profitability and operational efficiency.

• Net income grew by 18.1% year-over-year, reaching BRL1.1 billion, indicating strong financial performance.

Negative Points

• Prepaid segment experienced a significant drop due to aggressive migration to hybrid plans, impacting prepaid revenues.

• Cost of services and goods sold increased by 4.8% year-over-year, driven by greater demand for B2B services.

• There is ongoing pressure to maintain cost efficiencies amidst rising operational expenses.

• The transition from copper to fiber and real estate sales may take time to fully realize financial benefits.

• Competition in the mobile sector remains intense, with challenges from regional operators and MVNOs.

Q & A Highlights

Q: What are the key efficiency levers Telefonica Brasil is working on to sustain or expand margins, and what caused the significant drop in prepaid this quarter? A: Christian Gebara, CEO, explained that the drop in prepaid was mainly due to aggressive migration to hybrid plans, impacting prepaid revenues. The company focuses on digitalization, using technology and AI to reduce costs and enhance customer care and sales through their Vivo app. This strategy is expected to sustain or expand margins by capturing revenue growth and reducing costs.