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.
