Brisanet Serviços de Telecomunicações (BRST3) Q4 2024 earnings summary

Executive summary

• 2024 saw major expansion in 5G coverage, organic broadband growth, and portfolio diversification, consolidating the company as a leading ISP in the Northeast and the fifth largest in Brazil.

• Mobile service reached 338,000 subscribers by year-end, with coverage in 237 municipalities and over 10 million inhabitants, achieving over 20% market share in smaller towns.

• Broadband customer base grew by 157,625 FTTH customers, totaling 1,449,716 connected homes, making the company the largest broadband operator in the Northeast.

• Recognized for customer satisfaction, winning multiple awards and leading in Anatel's quality survey in six out of eight states evaluated.

• Strategic focus on underserved areas with mobile networks but lacking fiber coverage, and on digital inclusion projects.

Financial highlights

• Net revenue for 2024 was R$1,428 million, up 16% year-over-year; 4Q24 net revenue reached R$382.2 million, up 16% YoY.

• Adjusted EBITDA for 2024 was R$604.9 million (margin 42%), up 2–4% from 2023; 4Q24 Adjusted EBITDA was R$163.1 million (margin 43%).

• Net income for 2024 was R$60.8 million, a 65% decrease from 2023, mainly due to lower tax credits and higher effective tax rate.

• Capital expenditure totaled R$995 million, up 114% year-over-year, reflecting heavy investment in 5G and mobile infrastructure.

• Free cash flow was negative R$375 million in 2024 due to high capex.

Outlook and guidance

• Continued focus on expanding 5G and broadband coverage, with medium-term projections for improved profitability as infrastructure investments mature.

• Plans to further increase mobile and broadband customer base, leveraging operational efficiency and commercial strategy.

• CAPEX remains focused on 5G and client base growth, with inventory buildup supporting future expansion.