Telefônica Brasil (VIVT3) Q4 2024 earnings summary

Executive summary

• Achieved record customer base of 116.1 million accesses in 4Q24, with strong growth in post-paid mobile and fiber segments, and 504 cities covered by 5G.

• Total revenues rose 7.7% in Q4, driven by mobile (up 7%) and fixed (up 8%) segments.

• EBITDA increased 7.8% year-over-year, with margin stable at 42.5%.

• Net income reached R$5,548 million in 2024, up 10.3% year-over-year; EPS at R$3.38, up 11.3%.

• Shareholder remuneration exceeded R$5,845 million in 2024, up 22.1% year-over-year, with a payout ratio of 105.3% of net income.

Financial highlights

• Net operating revenue was R$14.6bn in 4Q24 (+7.7% YoY), and R$55.8bn in 2024 (+7.2% YoY).

• Free cash flow totaled R$8.2 billion in 2024, with a yield of 10.8%.

• CapEx was R$9,166 million in 2024 (+2.3% YoY), with CapEx over sales reduced to 16.4%.

• Operating cash flow margin at 24.6% in 2024 (+0.8 p.p. YoY).

• Net cash position of R$1,444 million at year-end; net debt/EBITDA at 0.6x including leases.

Outlook and guidance

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

• Guidance for 2025 shareholder remuneration already totals R$4,450 million, with new share buyback program up to R$1.75 billion.

• Selective expansion of fiber footprint and focus on increasing penetration over existing network.

• Expectation of improved returns and cost structure from fixed voice migration and asset monetization.

• Board approved reverse and forward stock split to improve share liquidity.