Telefônica Brasil (VIVT3) Q4 2024 earnings summary

Executive summary

• Achieved record customer base of 116.1 million accesses (+2.7% YoY), with 102.3 million mobile accesses (+3.3% YoY) and 504 cities covered by 5G (+2.9x YoY).

• Net income reached R$5.55 billion in 2024 (+10.3% YoY), with EPS up 11.3% to R$3.38.

• Distributed R$5.85 billion to shareholders in 2024 (+22.1% YoY), with a payout ratio of 105.3% of net income.

• Maintained leadership in mobile and fiber markets, with strong ESG initiatives and global sustainability recognition.

• Major progress in fixed voice migration, regulatory agreements, and digital services expansion.

Financial highlights

• Total revenues rose 7.7% in Q4 and 7.2% in 2024, driven by mobile (up 7%) and fixed (up 8%) segments.

• EBITDA increased 7.8% YoY to R$22.88 billion, margin at 42.5% in Q4 and 41.0% for 2024.

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

• CapEx reached R$9.17 billion (+2.3% YoY), representing 16.4% of net revenue.

• Net cash position of R$1.44 billion at year-end; net debt/EBITDA at 0.6x.

Outlook and guidance

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

• Focus on expanding fiber and 5G coverage, digital services, and ESG leadership.

• Main commercial strategy for 2025 is converging fiber and mobile services (Vivo Total).

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

• Guidance for 2025 shareholder remuneration already totals R$4.45 billion, with new share buyback program up to R$1.75 billion.