Telefônica Brasil (VIVT3) Q2 2024 earnings summary

Executive summary

• Achieved strong growth in Q2 and H1 2024, with total revenue up 7.4% year-over-year and EBITDA up 7.3%, both outpacing inflation.

• Net income rose 8.2% to R$2.1 billion in H1 2024, with free cash flow reaching R$5.5 billion, over 20% of total revenues.

• Customer base surpassed 100.9 million mobile accesses and 6.5 million FTTH homes connected, with postpaid access up 7.2% and FTTH connections up 12.7% year-over-year.

• Shareholder remuneration in 2024 totaled over R$4.1 billion, including dividends, capital reduction, and buybacks.

• ESG advances include accelerating Net Zero target to 2035 and diversity goals for leadership and workforce.

Financial highlights

• Total revenues increased 7.4% year-over-year, driven by 8.8% growth in mobile service revenues and 17.1% in FTTH.

• EBITDA margin stable at 39.9%; adjusted margin reached 40.8%.

• Net income for H1 2024 was R$2.1 billion, up 8.2% year-over-year.

• Operating cash flow for H1 2024 reached R$6.5 billion, up 9% year-over-year, with a margin of 24%.

• Free cash flow for H1 2024 was R$5.5 billion, with a double-digit yield.

Outlook and guidance

• Committed to distributing at least 100% of net income to shareholders for 2024-2026.

• Continued investment in 5G, FTTH, and digital services to maintain network leadership and expand offerings.

• Guidance for shareholder remuneration remains robust, unaffected by regulatory migration.