SAO PAULO, Nov. 5, 2024 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3; NYSE: VIV), announces its results for 3Q24.
Strong operating performance resulting in revenues, EBITDA, and net income growth along with reduced Capex intensity.
R$ million | 3Q24 | 3Q23 | % Y-o-Y | 9M24 | 9M23 | % Y-o-Y |
Net Operating Revenue | 14,039 | 13,112 | 7.1 | 41,264 | 38,565 | 7.0 |
Mobile Services | 9,212 | 8,465 | 8.8 | 26,821 | 24,614 | 9.0 |
FTTH | 1,790 | 1,570 | 14.0 | 5,264 | 4,568 | 15.2 |
Corporate Data, ICT, and others | 1,129 | 1,060 | 6.5 | 3,389 | 3,195 | 6.1 |
Electronics | 856 | 814 | 5.1 | 2,553 | 2,411 | 5.9 |
Other Revenues¹ | 1,053 | 1,202 | (12.4) | 3,236 | 3,777 | (14.3) |
Total Costs | (8,089) | (7,573) | 6.8 | (24,582) | (22,999) | 6.9 |
EBITDA | 5,950 | 5,539 | 7.4 | 16,682 | 15,566 | 7.2 |
EBITDA / Net Revenue Margin | 42.4 % | 42.2 % | 0.1 p.p. | 40.4 % | 40.4 % | 0.1 p.p. |
EBITDA AL | 4,702 | 4,400 | 6.9 | 12,965 | 12,111 | 7.1 |
EBITDA AL / Net Revenue Margin | 33.5 % | 33.6 % | (0.1) p.p. | 31.4 % | 31.4 % | 0.0 p.p. |
Net Income | 1,667 | 1,472 | 13.3 | 3,785 | 3,429 | 10.4 |
Earnings per Share (EPS) | 1.02 | 0.89 | 14.4 | 2.30 | 2.07 | 11.2 |
CAPEX ex-IFRS 16 | 2,495 | 2,626 | (5.0) | 6,710 | 6,665 | 0.7 |
Operating Cash Flow (OpCF) | 3,455 | 2,913 | 18.6 | 9,972 | 8,901 | 12.0 |
OpCF/ Net Revenue Margin | 24.6 % | 22.2 % | 2.4 p.p. | 24.2 % | 23.1 % | 1.1 p.p. |
Operating Cash Flow AL (OpCF AL) | 2,207 | 1,774 | 24.4 | 6,255 | 5,446 | 14.9 |
OpCF AL / Net Revenue Margin | 15.7 % | 13.5 % | 2.2 p.p. | 15.2 % | 14.1 % | 1.0 p.p. |
Free Cash Flow | 1,671 | 1,918 | (12.9) | 7,139 | 7,556 | (5.5) |
Total Subscribers (Thousand) | 115,245 | 111,582 | 3.3 | 115,245 | 111,582 | 3.3 |
1 | Other Revenues include Voice, xDSL, FTTC and IPTV. |
Net revenue grew (+7.1% YoY), driven by the strong performance of Mobile Service Revenue (MSR) (+8.8 YoY), boosted by double-digit growth in postpaid revenue (+10.4% YoY). Postpaid's strong performance is related to the increase in customer base (+7.6% YoY), which totaled 65.0 million in the quarter, driven by migrations from prepaid and adding new customers, that contributed to the +3.5% YoY increase in postpaid ex-M2M and ex-dongles ARPU, to R$53.0.
Fixed revenue increased +3.6% YoY, driven by the FTTH (+14.0% YoY) and Corporate Data, ICT and Digital Services (+6.5% YoY) revenues. FTTH network is currently present in 444 cities (+5 cities YoY) with 28.3 million homes passed (+12.7% YoY) and 6.7 million homes connected (+12.5% YoY).
EBITDA totaled R$5,950 million (+7.4% YoY), with a margin of 42.4% (+0.1 p.p. YoY), reflecting the strong performance of mobile service revenue (+8.8% YoY) and cost control (+6.8% YoY).
In 3Q24, Capex ex-IFRS 16 amounted to R$2,495 million (-5.0% YoY), representing 17.8% of revenues (-2.3 p.p. YoY), directed towards strengthening our mobile network, with emphasis on 5G coverage, that is already present in 394 cities, including all cities with over 200 thousand inhabitants, representing 57% of the Brazilian population.
In 9M24, Operating Cash Flow totaled R$9,972 million (+12.0% YoY), with a margin of 24.2% (+1.1 p.p. YoY) over net revenue.
Net income attributed to Telefônica Brasil reached R$1,667 million in 3Q24 (+13.3% YoY). Shareholder remuneration paid up in 2024 was R$4,790 million (+0.1% vs FY 2023), of which R$2,190 million of interest on equity, R$1,500 million in capital reduction, while R$1,110 million were invested in share buybacks. For the years 2024 to 2026, the Company has committed to distribute an amount equal to or above 100% of net income for each fiscal year.
To download the complete version of the Company's earnings release, please visit our website: https://ri.telefonica.com.br/en
SOURCE Telefônica Brasil S.A.
