1Q25 Results: Telefônica Brasil S.A.

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May 12, 2025, 18:42 ET

SÃO PAULO, May 12, 2025 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3; NYSE: VIV) announces its results for 1Q25.

Strong operating performance led to robust EBITDA and net income growth.

*R$ million*	1Q25	1Q24	% YoY

Net Operating Revenue	14,390	13,546	6.2
Mobile Services	9,272	8,702	6.5
FTTH	1,899	1,717	10.6
Corporate Data, ICT and Digital Services	1,312	1,132	15.8
Handsets and Electronics	909	881	3.2
Other Revenues¹	999	1,114	(10.3)
Total Costs	(8,687)	(8,269)	5.1
EBITDA	5,704	5,277	8.1
EBITDA Margin	39.6 %	39.0 %	0.7 p.p.
EBITDA AL²	4,376	4,047	8.1
EBITDA AL² Margin	30.4 %	29.9 %	0.5 p.p.
Net Income	1,058	896	18.1
Earnings per Share (EPS)	0.65	0.54	20.3

CAPEX ex-IFRS 16	1,869	1,874	(0.3)
Operating Cash Flow (OpCF)	3,835	3,403	12.7
OpCF Margin	26.7 %	25.1 %	1.5 p.p.
Operating Cash Flow AL (OpCF AL)²	2,508	2,173	15.4
OpCF AL² Margin	17.4 %	16.0 %	1.4 p.p.
Free Cash Flow	2,124	2,380	(10.7)

Total Subscribers (Thousand)	116,127	113,481	2.3

1 – Other Revenues include Voice, xDSL, FTTC and IPTV. 2 – AL means After Leases.

Net revenue expanded by +6.2% YoY, driven by the strong performance of postpaid (+10.3% YoY) and fiber (+10.6% YoY) revenues. Postpaid's performance is supported by the increase in the customer base (+7.7% YoY), that ended the quarter with 67.4 million accesses due to significant migrations and the acquisition of new customers. Additionally, the impact of annual price adjustments contributed to the +2.0% YoY increase in postpaid ARPU, excluding M2M and dongles, reaching R$52.2.

Fixed revenue increased +6.2% YoY, supported by strong growth in FTTH (+10.6% YoY) and Corporate Data, ICT, and Digital Services revenues (+15.8% YoY) in 1Q25. Our FTTH network reached 29.6 million homes passed (+10.5% YoY), with 7.2 million homes connected (+12.9% YoY).

EBITDA grew by +8.1% YoY, with a margin of 39.6%, an increase of +0.7 p.p. in the annual comparison. EBITDA AL also expanded by +8.1% YoY, with a margin of 30.4% (+0.5 p.p. YoY).

In 1Q25, Capex totaled R$1,869 million, a decrease of -0.3% YoY, representing 13.0% of revenues (-0.9 p.p. YoY), reflecting the reduction in Capex intensity over net revenue. Investments were directed towards strengthening our 5G network, which is already present in 519 cities (+2.9x YoY), covering 62% of the Brazilian population, and expanding our fiber operation.

Operating Cash Flow totaled R$3,835 million (+12.7% YoY), with a margin of 26.7% (+1.5 p.p. YoY) over net revenue.

Net income attributed to Telefônica Brasil reached R$1,058 million in the quarter, an increase of +18.1% YoY. The remuneration paid to shareholders totaled R$2,576 million by the end of April 2025. Additionally, on July 15, 2025, we will pay R$2,000 million related to the second capital reduction event. The Company has just deliberated an additional R$500 million in interest on equity, totaling R$1,120 million up to May 2025. We committed to distribute to our shareholders an amount equal to or greater than 100% of net income for each fiscal year from 2024 to 2026. In 2024, we met the guidance, with a payout of 105.3% of net income.