Telefônica Brasil (VIVT3) investor relations material

Executive summary

• Achieved strong year-over-year growth in core metrics, with customer base expansion to 117.4 million accesses, resilient revenue, and margin improvement, driven by postpaid and fiber segments.

• Mobile postpaid accesses grew 6.9% YoY to 72.1 million, and fiber connections reached 8 million, up 11.5% YoY, with 31.5 million homes passed.

• Net income rose 19.2% YoY to R$1,261.1 million, with EBITDA up 8.9% YoY to R$6,209.3 million and margin at 40.2%.

• New business and digital services now represent 12.1% of total revenues, up 1.8 p.p. from Q1 2025; B2B digital revenues up 23.8% YoY.

• Recognized for ESG leadership, including top rankings in sustainability indices and increased board diversity.

Financial highlights

• Net operating revenue increased 7.4% YoY to R$15,457 million, with mobile service revenue up 6.6% and fixed revenue up 5.1%.

• EBITDA margin improved by 0.5 p.p. YoY to 40.2%; free cash flow totaled R$2,200 million, up 3.6% YoY.

• Net income attributable to controlling shareholders was R$1.26 billion, a 19% increase YoY.

• Operating cash flow after leases up 10% YoY to BRL 3 billion; net cash position up 65% YoY; net debt/EBITDA at 0.4x.

• EPS increased 21.0% YoY to R$0.39.

Outlook and guidance

• Reaffirmed commitment to distribute at least 100% of FY2026 net income to shareholders, with BRL 7 billion confirmed for 2026 remuneration.

• CapEx intensity expected to improve in 2026, with disciplined resource allocation and over 75% dedicated to 5G and fiber.

• Preparing for Brazil's new dual VAT tax system, with no financial impact expected in 2026 and full effects from 2027.