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• Total Revenue Growth: Increased by 7.7% in Q4 2024.

• Mobile Revenue Growth: Grew by 7% in Q4 2024.

• Fixed Revenue Growth: Increased by 8% in Q4 2024.

• EBITDA Growth: Increased by 7.8% year-over-year.

• Operating Cash Flow: BRL13.7 billion, growing 11% year-over-year.

• Capital Expenditure (CapEx): BRL9.2 billion in 2024.

• Net Income: BRL5.5 billion, a growth of 10.3% versus the previous year.

• Free Cash Flow: BRL8.2 billion in 2024, with a yield of 10.8%.

• Shareholder Remuneration: Over BRL5.8 billion paid, a 22% increase year-over-year.

• Postpaid Access Growth: 7.6% increase, reaching 66.5 million in 2024.

• Fiber Homes Connected Growth: 12.7% increase, totaling 7 million access.

• Net Cash Position: BRL1.4 billion at the end of 2024.

• EBITDA Margin: Maintained at 42.5% in Q4 2024.

• Postpaid Revenue Growth: 9.1% in Q4 2024.

• FTTH Revenue Growth: 12.4% in 2024.

• B2B Digital Services Growth: 21.1% in 2024.

• Cloud Solutions Revenue: Close to BRL2 billion, up 32.6% year-over-year.

• Warning! GuruFocus has detected 6 Warning Signs with VIV.

Release Date: February 26, 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 significant increase in postpaid access, growing by 7.6% to reach 66.5 million in 2024.

• The company reported a 7.7% increase in total revenues for the fourth quarter, with mobile and fixed revenues growing by 7% and 8%, respectively.

• EBITDA increased by 7.8% year-over-year, reflecting strong operational performance.

• The company paid over BRL5.8 billion to shareholders in 2024, marking a 22% increase in shareholder remuneration year-over-year.

• Telefonica Brasil SA (NYSE:VIV) joined the Dow Jones Best-in-Class World Index, highlighting its commitment to sustainability and ESG initiatives.

Negative Points

• Total OpEx grew by 7.7% year-over-year, driven by an 11% increase in the cost of services and goods sold.

• The company faced a slight decrease in mobile service revenue quarter-over-quarter, attributed to a strong prior quarter and lower price increases in 2024 compared to 2023.

• Excluding one-off effects, the EBITDA margin faced year-over-year compression due to rising inflation and cost pressures.

• Fiber ARPU has been declining sequentially, influenced by bundling discounts and new market entries.

• The company has not yet increased prepaid prices, which could pose a challenge for upselling and maintaining competitive pricing.

Q & A Highlights

Q: Can you discuss the perspective on dividends for 2025 and whether you expect an increase compared to 2024? A: David Sanchez-Friera, CFO, stated that for 2025, the company is committed to delivering a payout of 100% of net income or above. They have already planned a capital reduction and interest on capital payments totaling BRL4.2 billion. Additionally, they continue with their share buyback program, with a total plan of BRL1.75 billion. The company is optimistic about maintaining attractive shareholder remuneration due to strong business trends and cash generation.