Telefônica Brasil (VIVT3) Q2 2025 earnings summary

Executive summary

• Achieved robust operational and financial results in Q2 2025, with net operating revenue rising 7.1% year-over-year to R$14.6 billion, driven by strong growth in mobile postpaid and fiber segments, and continued expansion in digital services and ESG initiatives.

• Mobile postpaid accesses grew 7.0% year-over-year to 68.5 million, now 67% of total mobile base; total mobile accesses reached 102.5 million (+1.5% YoY).

• Fiber homes connected rose 12.6% year-over-year to 7.4 million, with homes passed up 10.2% to 30.1 million.

• EBITDA increased 8.8% year-over-year to R$5.9 billion, with margin expanding to 40.5%.

• Recognized as a leader in ESG, with awards and increased supplier engagement on climate and sustainability issues.

Financial highlights

• Total revenue for Q2 2025 increased 7.1% year-over-year to R$14.6 billion; mobile service revenue up 7.3%, fixed revenue up 8.0%.

• Net income for H1 2025 rose 13.5% year-over-year to R$2.4 billion.

• Operating cash flow in H1 2025 reached R$7.3 billion, up 12.5% year-over-year, with a margin of 25.2%.

• Free cash flow for H1 2025 totaled R$5.1 billion, with a 17.6% margin; free cash flow yield (LTM) at 7.8%.

• Shareholder remuneration totaled over R$5.2 billion by July 2025, including dividends, capital reduction, and buybacks.

Outlook and guidance

• Commitment to distribute at least 100% of net income as shareholder remuneration for 2025 and 2026.

• Confident in delivering R$4.5 billion in asset sales over coming years, mainly from copper and real estate, with value capture in 2026 and 2027.

• Ongoing focus on organic and potential M&A-driven fiber expansion, with room to grow beyond 30 million homes passed.

• Continued focus on digital transformation, innovation, and margin expansion as asset sales and cost efficiencies accelerate.

• Tax reform impacts are not expected until after 2026, with no effect on current period results.