In This Article:
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Total Revenue Growth: Increased by 7.4% year-over-year.
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Mobile Service Revenue Growth: Up 8.8% in the quarter.
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EBITDA Growth: Expanded by 7.3% year-over-year.
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Operating Cash Flow: Totaled BRL6.5 billion up to June.
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Free Cash Flow Generation: Reached BRL5.5 billion, representing over 20% of total revenues.
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Net Income Growth: Expanded by 8.2% year-over-year.
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Postpaid Access Growth: Increased by 7.2% year-over-year.
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FTTH Homes Connected Growth: Grew by 12.7% year-over-year.
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Mobile ARPU Growth: Increased by 6.3% year-over-year.
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FTTH ARPU: Reached BRL90.9, growing 4% from the previous year.
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B2B Revenue Growth: Up 7% year-over-year.
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CapEx: Totaled BRL4.2 billion in the first semester.
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Net Income for First Semester: More than BRL2 billion, with an 8.9% growth in Q2.
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Shareholder Remuneration: Over BRL4.1 billion paid out, with a target payout of at least 100% of net income for the year.
Release Date: July 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Total revenues increased by 7.4%, driven by an 8.8% rise in mobile service revenues.
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EBITDA expanded by 7.3% year-over-year, with operating cash flow reaching BRL6.5 billion.
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Postpaid access grew by 7.2%, and homes connected with FTTH increased by 12.7%.
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Net income expanded by 8.2% year-over-year, enhancing profitability.
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Vivo's B2B digital services and B2C new businesses represented 9.9% of total revenues, up 1.2 percentage points year-over-year.
Negative Points
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OpEx growth was driven by strong commercial performance and volatility in other revenues and expenses.
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Reduced sales of real estate and network assets, as well as lower tax recoveries, impacted year-over-year comparisons.
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The migration from concession to authorization is still pending approval, with no specific date for completion.
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The competitive mobile market presents challenges with new offerings from regional players.
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The company faces exposure to FX depreciation, particularly affecting handset costs and CapEx.
Q & A Highlights
Q: What are the main barriers for increasing mobile plan prices more significantly? Is it competitors' prices or consumer budget constraints? A: Christian Gebara, CEO, explained that the strategy goes beyond price increases, focusing on service combinations like fiber and mobile convergence. Price increases have been driven by inflation, but the company emphasizes reducing churn and increasing customer lifetime value through bundled services.
Q: How confident is Vivo in becoming a relevant player in digital services, and can it be a profitable business? A: Christian Gebara, CEO, expressed confidence in digital services, noting that they already represent around 10% of revenues. The company leverages its large customer base and extensive channels to drive growth in both B2B and B2C digital services, which have shown significant revenue increases.