Telefônica Brasil announces its results for 2Q24

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Jul 29, 2024, 18:39 ET

SÃO PAULO, July 29, 2024 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3; NYSE: VIV), announces its results for 2Q24.

2Q24 Results: Telefônica Brasil S.A.

Strong operating performance leading to above-inflation growth in revenues, EBITDA and net income.

*R$ million*	2Q24	2Q23	% Y-o-Y	6M24	6M23	% Y-o-Y

Net Operating Revenue	13,679	12,733	7.4	27,225	25,454	7.0
Mobile Services	8,907	8,184	8.8	17,609	16,149	9.0
FTTH	1,757	1,501	17.1	3,474	2,997	15.9
Corporate Data, ICT and others	1,128	1,042	8.3	2,260	2,135	5.9
Electronics	817	743	9.9	1,698	1,597	6.3
Other Revenues¹	1,070	1,263	(15.3)	2,184	2,575	(15.2)
Total Costs	(8,224)	(7,648)	7.5	(16,493)	(15,426)	6.9
EBITDA	5,455	5,085	7.3	10,732	10,027	7.0
EBITDA / Net Revenue Margin	39.9 %	39.9 %	(0.1) p.p.	39.4 %	39.4 %	0.0 p.p.
EBITDA AL	4,216	3,927	7.3	8,263	7,711	7.2
EBITDA AL / Net Revenue Margin	30.8 %	30.8 %	(0.0) p.p.	30.4 %	30.3 %	0.1 p.p.
Net Income	1,222	1,123	8.9	2,118	1,957	8.2
Earnings per Share (EPS)	0.74	0.68	9.5	1.28	1.18	8.8

CAPEX ex-IFRS 16	2,341	2,353	(0.5)	4,215	4,039	4.4
Operating Cash Flow (OpCF)	3,114	2,732	14.0	6,517	5,988	8.8
OpCF/ Net Revenue Margin	22.8 %	21.5 %	1.3 p.p.	23.9 %	23.5 %	0.4 p.p.
Operating Cash Flow AL (OpCF AL)	1,875	1,575	19.1	4,048	3,672	10.2
OpCF AL / Net Revenue Margin	13.7 %	12.4 %	1.3 p.p.	14.9 %	14.4 %	0.4 p.p.
Free Cash Flow	3,089	2,508	23.1	5,469	5,638	(3.0)

Total Subscribers (Thousand)	114,683	111,940	2.5	114,683	111,940	2.5

¹ ^{– Other Revenues includes Voice, xDSL, FTTC and IPTV.}

Net revenue grew (+7.4% YoY), driven by the strong performance of Mobile Service Revenue (MSR) (+8.8 YoY), which was boosted by the growth of Postpaid Revenue (+9.7% YoY). Postpaid's strong performance is related to the increase in customer base (+7.2% YoY), both due to migrations from prepaid as well as to the acquisition of new customers, annual price adjustments, and by maintaining postpaid's (ex-M2M) churn in historical low levels, 0.99% per month.

Fixed revenue had the biggest increase since 2015, +3.9% YoY, mainly driven by the increase in FTTH Revenue, which continued to expand strongly (+17.1% YoY) in 2Q24. FTTH network is currently present in 444 cities (+5 cities YoY) with 27.3 million homes passed (+10.5% YoY) and 6.5 million homes connected (+12.7% YoY).

EBITDA totaled R$5,455 million (+7.3% YoY), with a margin of 39.9% (-0.1 p.p. YoY), due to the strong service revenue performance.

Operating Cash Flow totaled R$3,114 million (+14.0% YoY), with a margin of 22.8% (+1.3 p.p. YoY) over net revenue. In 2Q24, Capex ex-IFRS16 totaled R$2,341 million (-0.5% YoY) or 17.1% of revenues (-1.4 p.p. YoY), directed towards strengthening our mobile network.

Net income attributed to Telefônica Brasil reached R$1,222 million in 2Q24 (+8.9% YoY). Shareholder remuneration paid up in 2024 reached, so far, R$4,137 million, of which R$2,190 million in interest of capital, R$1,500 million from the resources resulting from the capital reduction, while R$447 million were invested in share buybacks. For the years 2024 to 2026, the Company has committed to distribute an amount equal to or above 100% of net income for each fiscal year.

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.