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.
TELEFÔNICA BRASIL – Investor Relations
[email protected]
To download the complete version of the Company's earnings release, please visit our website: https://ri.telefonica.com.br/en
SOURCE Telefônica Brasil S.A.
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