3Q24 Results: Telefônica Brasil S.A.

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

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SOURCE Telefônica Brasil S.A.

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