Unifique Telecomunicações (FIQE3) Q3 2024 earnings summary

Executive summary

• Achieved strong organic growth in Q3 2024, with 15,123 net adds, up 76% sequentially, and robust expansion in 5G mobile services, nearly doubling accesses to 59,754, with a year-end target of 100,000 and long-term goal of 3 million by 2030.

• Maintained leadership in Santa Catarina with a 20.9% market share and positive momentum in Rio Grande do Sul, expanding presence in 69 cities in SC and 38 in RS.

• Net revenue grew 10.47% year-over-year in Q3 2024 to BRL 255.3 million, with gross revenue at BRL 319.4 million, and net income up 13.3% to BRL 46.4 million.

• EBITDA margin remained strong at 50.2%, with recurring EBITDA at BRL 121.5 million, up 10.5% year-over-year.

• Free cash flow for Q3 2024 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%.

• Net income for Q3 2024 was BRL 46.4 million, a 13.3% increase year-over-year, with net margin at 18.2%.

• EBITDA conversion to operational cash flow was 93.9% in Q3 and 96.5% for the nine-month period.

• CAPEX surged 143.3% year-over-year to BRL 89.3 million, driven by network 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.

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

• MVNO contract authorized by ANATEL in August 2024 enables national expansion.

• Focus remains on operational synergies, network expansion, and integrating acquired companies.