In This Article:
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Revenue Growth: Total revenues increased by 7.1%, driven by an 8.8% growth in mobile service revenues.
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EBITDA Growth: EBITDA rose by 7.4% year over year, with a margin of 42.4%.
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Operating Cash Flow: Reached BRL 10 billion since the beginning of the year, with a 12% year-over-year growth.
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Free Cash Flow: Accumulated BRL 7.1 billion in free cash flow during the period.
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Net Income: Year-to-date net income increased by 10.4%.
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Customer Base Growth: Overall customer base grew by 7.6%, with FTTH connections increasing by 12.5%.
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CapEx: CapEx remained stable at BRL 6.7 billion since the beginning of the year.
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5G Expansion: 5G access more than doubled, reaching 13.8 million, covering almost 400 cities.
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B2C Revenue: B2C segment represented 77% of total revenue, growing 7.5% over the last 12 months.
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B2B Revenue: B2B segment accounted for 21% of total revenue, with a 6.5% year-over-year growth.
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Shareholder Returns: Paid out BRL 4.8 billion in shareholder remuneration, including interest on capital, capital reduction, and share buybacks.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Telefonica Brasil SA (NYSE:VIV) reported a robust performance with all key lines posting real growth, maintaining its leadership position in the market.
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The customer base increased by 7.6%, with significant growth in fibre connections (FTTH) by 12.5%.
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Total revenues rose by 7.1%, driven primarily by an 8.8% increase in mobile service revenues.
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EBITDA grew by 7.4% year over year, with a margin expansion to 24.2% of revenues.
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The company achieved a double-digit net income growth of 10.4%, which will be fully distributed to shareholders.
Negative Points
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The competitive environment remains challenging, with new entrants like Nubank offering aggressive pricing in the prepaid segment.
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Operational expenses grew by 6.8% year over year, impacting cost management efforts.
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The company faces volatility in lease payments, which can affect cash flow projections.
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Legacy fixed revenues continue to decline, although the pace has decelerated slightly.
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There are uncertainties regarding regulatory approvals for the migration from concession to authorization, which could impact future cost optimizations.
Q & A Highlights
Q: How do you view the competitive environment and pricing, especially with new entrants like Nubank offering lower price points? A: Christian Gebara, CEO: Nubank's entry is another competitor, but we are used to competition. Their offer is a prepaid model with hybrid characteristics, which allows them to be aggressive in pricing. However, our hybrid plans offer more value with content and services. We are confident in our strong network, product portfolio, and distribution channels to remain competitive.