Brisanet Serviços de Telecomunicações (BRST3) Q1 2025 earnings summary

Executive summary

• Net revenue reached R$391.6 million in 1Q25, up 17% year-over-year, driven by expansion in broadband, mobile, and B2B segments, with subscriber growth and presence in up to 260 municipalities covering nearly 12 million people.

• Adjusted EBITDA rose 22% year-over-year to R$173.2 million, with margin improving to 44%, reflecting operational efficiency and cost control.

• Net income totaled R$20.4 million, stable compared to 1Q24, despite higher financial expenses from increased debt and interest rates.

• Over 47,000 new broadband customers and 113,000 new mobile customers were added in 1Q25.

Financial highlights

• Gross revenue was R$434.3 million, up 16.2% year-over-year; net revenue was R$391.6 million, up 17%.

• EBITDA for 1Q25 was R$184.8 million, a 30% increase year-over-year, with margin at 47%.

• Operating income rose to R$65.3 million, up 36% year-over-year.

• Net debt reached R$1,431.1 million, with net debt/LTM EBITDA at 2.21x.

• Free cash flow for 1Q25 was R$13 million, reflecting high investment levels.

Outlook and guidance

• Continued focus on investments in 5G and network expansion, with CAPEX expected to reach R$700 million in 2024 and R$464 million in 2025.

• Investments will remain concentrated in the first half of 2025, especially in mobile infrastructure, with margin gains anticipated as the fiber operation matures.

• Operational strength and innovation in the Northeast and Midwest position the company for further expansion.