Oi (OIBR4) Q4 2024 earnings summary

Executive summary

• Completed a major court-supervised reorganization, including approval and implementation of a new Judicial Reorganization Plan, significant debt reduction, asset divestments (UPI ClientCo, Pay-TV, real estate, towers), and a capital increase with creditors now holding nearly 80% of shares.

• Transitioned from concession to authorization regime, reducing regulatory costs and enabling operational flexibility.

• Focused on B2B digital solutions (Oi Solutions), subsidiaries, and legacy services, with a leaner, more efficient structure and new governance.

• Financial statements for 2024 were audited and present a fair view under Brazilian GAAP and IFRS, despite ongoing judicial reorganization.

• Continuity of operations depends on successful execution of the New JRP, with material uncertainties regarding going concern due to excess liabilities and accumulated losses.

Financial highlights

• Net revenue from continuing operations was R$625 million in 4Q24, down 33.5% year-on-year; consolidated net revenue for 2024 was R$3.18 billion, down from R$4.26 billion in 2023.

• Oi Solutions contributed R$2.12 billion in 2024, with 65% of 4Q24 revenue from this segment; legacy services contributed R$885 million.

• Routine EBITDA margin was -6.9% in 4Q24, with reported EBITDA negative R$638 million; profit for the year reached R$9.61 billion, mainly due to a R$17.4 billion gain from debt novation.

• Net debt reduced by 56% year-on-year to R$10.18 billion at fair value; gross debt decreased 53.1% to R$12.0 billion.

• Cash balance at period end was R$1.8 billion, up 35% sequentially; cash and cash equivalents at year-end were R$1.53 billion.

Outlook and guidance

• Focus on B2B revenue recovery, profitability, and further asset sales, especially real estate, with additional liquidity sought through credit rights recovery and operational optimization.

• The outlook is contingent on full implementation of the New JRP and successful execution of the strategic plan focused on core and digital businesses.

• Management projects improved liquidity and reduced debt service post-restructuring, but ongoing risks from legacy operations and market conditions remain.

• No specific forward-looking guidance provided; management refrained from publishing estimates.