Brisanet Serviços de Telecomunicações (BRST3) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was R$18.0 million, a 60% decrease compared to Q2 2023, mainly due to higher costs and expenses from mobile operations and increased financial expenses.

• Net revenue grew 15.4% year-over-year to R$346.5 million, driven by subscriber growth and higher B2B revenues.

• EBITDA reached R$146.1 million, down 1.9% year-over-year, with margin declining to 42% from 50% due to mobile segment ramp-up costs.

Financial highlights

• Gross revenue increased 14.8% year-over-year to R$386.4 million in Q2 2024.

• Operating costs rose 31% year-over-year, mainly from depreciation, personnel, and streaming content costs.

• Financial expenses increased 16% year-over-year, impacted by higher interest and currency devaluation.

• Cash from operations was R$304.4 million, but free cash flow was negative due to R$384.8 million in capex.

Outlook and guidance

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

• Recent R$600 million debenture issuance will support working capital and mobile network expansion.