Telefônica Brasil (VIVT3) Q3 2024 earnings summary

Executive summary

• Achieved robust growth in revenues and EBITDA, maintaining market leadership and customer trust, with high single-digit increases in both metrics year-over-year.

• Mobile postpaid accesses grew 7.6% year-over-year, reaching 101.5 million total mobile accesses; FTTH homes connected increased 12.5% to 6.7 million, with 28.3 million homes passed.

• Net income for the first nine months reached up to R$6.8 billion, up 10% year-over-year.

• Continued focus on digital transformation, ESG initiatives, and expanding B2B and B2C digital services.

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

Financial highlights

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

• EBITDA increased 7.4% year-over-year, with margin improving to 42.4% in Q3 2024.

• Free cash flow for 9M24 was R$7.1bn, representing 17.3% of total revenues.

• CapEx for 9M24 was R$6.7bn, representing 17.3% of sales, with CapEx intensity declining.

• Net cash position (ex-IFRS 16) of R$1.72bn; leverage remained low at 0.5x EBITDA.

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.

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