Telefônica Brasil (VIVT3) Q2 2025 earnings summary

Executive summary

• Achieved robust operational and financial results in Q2 2025, with strong growth in mobile postpaid and fiber segments, and continued expansion in digital services and ESG leadership.

• 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 (FTTH) accesses up 12.6% year-over-year to 7.4 million; homes passed up 10.2% to 30.1 million.

• Total revenue rose 7.1% year-over-year to BRL 14.6 billion, driven by high single-digit growth in both mobile and fixed revenues.

• Strategic acquisition of Fibrasil (Fiber Zero) to expand fiber leadership nationwide, pending regulatory approval.

Financial highlights

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

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

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

• Free cash flow yield for the last 12 months at 7.8%, with a free cash flow margin of 17.6% year-to-date.

• Paid BRL 5.2 billion to shareholders by July 2025, including dividends, capital reduction, and buybacks.

Outlook and guidance

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

• Share buyback program ongoing, with BRL 1 billion available for repurchase through February 2026.

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

• Reaffirmed commitment to distribute at least 100% of net income to shareholders for 2025 and 2026.

• Expecting further cost and OpEx reductions as copper migration accelerates in 2026–2027.