Telefônica Brasil (VIVT3) Q1 2025 earnings summary

Executive summary

• Achieved strong operational and financial growth in Q1 2025, with postpaid customers up 7.7% and fiber customers up 12.9% year-over-year, and total mobile accesses reaching 102.4 million.

• Total revenues rose 6.2% year-over-year to BRL 14.4 billion, driven by mobile and fixed services, with EBITDA up 8.1% to BRL 5.7 billion and net income up 18.1% to BRL 1.1 billion.

• Strategic focus on digital services, convergence, and customer migration to higher-value plans, with new businesses and digital B2B segments growing over 18% and 25% year-over-year, respectively.

• Shareholder remuneration reached BRL 2.6 billion YTD, with a commitment to distribute at least 100% of net income for 2025 and 2026.

• Continued leadership in ESG, recognized in major sustainability indices and for diversity initiatives.

Financial highlights

• Mobile service revenue increased 6.5% year-over-year, with postpaid revenue up 10.3% and prepaid down 11.4%; fixed revenues up 6.2% year-over-year.

• FTTH revenue increased 10.6% year-over-year; Corporate Data, ICT, and Digital Services revenue rose 15.8%.

• EBITDA margin improved to 39.6% (+0.7 p.p. YoY), with cost growth below inflation.

• Operating cash flow grew 12.7% to BRL 3.8 billion, representing 27% of total revenues.

• Free cash flow was BRL 2.1 billion (14.8% of total revenues), down 10.7% year-over-year due to timing of regulatory payments.

Outlook and guidance

• Confident in sustaining strong financial performance and meeting guidance for the coming years, with at least 100% of net income to be distributed to shareholders through 2026.

• New share buyback program launched, allowing investment of up to BRL 1.75 billion.

• Migration from fixed voice concession to authorization expected to yield BRL 4.5 billion in asset sales and recurring cost savings by 2028.