Brisanet Serviços de Telecomunicações (BRST3) Q1 2024 earnings summary

Executive summary

• Achieved 14.5% year-over-year growth in net revenue, reaching R$334.4 million in 1Q24, driven by subscriber growth and increased B2B revenue.

• Added 32,200 new fiber clients and 26,000 new homes passed in 1Q24, with total client base at 1.33 million by April 2024.

• Maintained strong fiber market share in key metropolitan areas, with stable or growing presence in capitals.

Financial highlights

• Net revenue: R$334.4 million in 1Q24, up 14.5% year-over-year.

• EBITDA: R$141.8 million, down 3.3% year-over-year, with margin at 42.4%.

• Net income: R$20.9 million, a decrease of 28.8% year-over-year.

• Operating costs rose 27% to R$191.5 million, mainly due to mobile segment expansion and higher streaming sales.

• Commercial expenses (excl. D&A) increased by R$17.2 million, reflecting higher personnel, advertising, and credit loss provisions.

Outlook and guidance

• Management reaffirms commitment to organic fiber client base growth and continued expansion in metropolitan areas.

• Approved BNDES credit line of R$146.2 million in May 2024 to support 5G/FWA network expansion and technology upgrades.