Telefônica Brasil (VIVT3) Q3 2024 earnings summary

Executive summary

• Achieved robust growth in Q3 2024, with net operating revenue up 7.1% year-over-year to R$14.04 billion and net income rising 13.3% to R$1.67 billion, driven by mobile and fiber expansion.

• Customer base expanded to 115.2 million accesses (+3.3% YoY), including 101.5 million mobile (+4.0% YoY) and 6.7 million FTTH homes connected (+12.5% YoY).

• EBITDA grew 7.4% year-over-year to R$5.95 billion, with margin stable at 42.4%.

• Maintained market leadership and customer trust, supported by digital transformation, ESG initiatives, and fintech expansion.

• Shareholder remuneration in 2024 totaled R$4.79 billion, with a commitment to distribute at least 100% of net income through 2026.

Financial highlights

• Total revenue rose 7.1% year-over-year in Q3 2024, with mobile service revenue up 8.8% and postpaid revenue up 10.4%.

• Free cash flow for the first nine months was R$7.1 billion, representing 17.3% of total revenues.

• CapEx for the period was R$6.7 billion, representing 17.3% of sales, with CapEx intensity declining.

• Net cash position (ex-IFRS 16) of R$1.72 billion; net debt including leases at R$12.53 billion.

• Operating cash flow margin improved to 24.6% (+2.4 p.p. YoY).

Outlook and guidance

• Confident in sustaining above-inflation revenue growth, supported by upselling, digital services, and customer base expansion.

• Committed to distributing at least 100% of net income as shareholder remuneration for 2024–2026.

• CapEx over sales ratio expected to continue declining as digital services grow.

• Ongoing capital stock reduction and share buyback program to enhance capital structure flexibility.