Unifique Telecomunicações (FIQE3) Q4 2024 earnings summary

Executive summary

• Achieved strong organic growth in broadband accesses, with a 41.7% increase year-over-year and network coverage expanded to 258 cities in 2024.

• Net income rose 20.3% to BRL 174.6 million in 2024, with a net margin of 17.0% and leadership in broadband and mobile services.

• Recognized as the best broadband provider in Southern Brazil for six consecutive years, reflecting service quality and customer dedication.

• Maintained low churn rates, high customer retention, and continued investments in 5G and XGS-PON technology.

• Overcame operational challenges, including severe floods in Rio Grande do Sul, with rapid recovery and service restoration.

Financial highlights

• Gross revenue reached BRL 1,272.4 million in 2024, up from BRL 1,108.8 million in 2023.

• EBITDA reached BRL 499.9 million, with a margin of 48.8% and strong cash generation (108.5% EBITDA to cash flow conversion).

• Net profit for 2024 was BRL 174.6 million, with a net margin of 17.0%.

• Net debt stood at BRL 334.4 million, with a leverage ratio of 0.66x Net Debt/EBITDA and a solid cash position of BRL 447.8 million.

• R$300 million in debentures were issued in 2024 to fund network expansion.

Outlook and guidance

• Targeting 300,000 mobile accesses by end of 2025 and expansion to over 100 cities, with full 5G/4G coverage in target regions by 2029.

• Planned CapEx of BRL 390 million for 2025, focused on broadband and 5G network expansion.

• Focus on sustaining growth through network expansion, technology upgrades, and efficient capital allocation.

• Expecting organic growth in fiber and mobile segments to exceed 24% in 2025.

• Prepaid mobile offerings to be launched, aiming to capture additional market segments.