Unifique Telecomunicações (FIQE3) Q3 2024 earnings summary

Executive summary

• Achieved strong organic growth in Q3 2024, with 15,000 net adds, up from 8,000 in Q2 and 4,000 in Q1, reflecting successful sales acceleration and low churn initiatives.

• Achieved 10.9% year-over-year gross revenue growth in 3Q24, reaching BRL 319.4 million, and 10.5% net revenue growth to BRL 255.3 million.

• Net income rose 13.3% year-over-year to BRL 46.4 million, with net margin improving to 18.2%.

• EBITDA margin remained strong at 50.2%, with adjusted EBITDA at BRL 121.5 million.

• Free cash flow for 3Q24 was BRL 24.8 million, with high EBITDA-to-OCF conversion of 93.9%.

Financial highlights

• Operational revenue reached BRL 319.4 million in Q3 2024, up 10.9% year-over-year; B2C grew 10.1%, B2B 14.2%.

• Gross profit increased 24.1% year-over-year to BRL 128.3 million, with gross margin up 5.5 p.p. to 50.3%.

• Recurring EBITDA was BRL 121.5 million, up 7.6% year-over-year, with a margin of 50.2%, a 2.3 p.p. increase from Q2.

• Net income for Q3 2024 was BRL 46.4 million, a 13.3% increase year-over-year.

• CAPEX surged 143.3% year-over-year to BRL 89.3 million, driven by network expansion and 5G investments.

Outlook and guidance

• Targeting 100,000 mobile accesses by year-end 2024, 300,000 in 2025, and 3 million by 2030.

• Mobile vertical expected to generate BRL 8 million in 2024, with projections of BRL 65–80 million in 2025 and up to BRL 200 million by 2026.

• Expansion into 5G and mobile services, with new authorizations for 700 MHz frequency and MVNO operations nationwide (except SC and RS).

• Continued focus on integrating acquired networks and optimizing infrastructure.

• 5G deployment prioritized in cities with existing fixed networks for cost efficiency; major acceleration expected from 2026.