1Q25 Results: Telefônica Brasil S.A.

PR Newswire

SÃO PAULO, May 12, 2025

SÃO PAULO, May 12, 2025 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3; NYSE: VIV) announces its results for 1Q25.

Strong operating performance led to robust EBITDA and net income growth.

 
R$ million                                         1Q25        1Q24    % YoY 
 
Net Operating Revenue                                14,390   13,546       6.2 
 Mobile Services                                      9,272    8,702       6.5 
 FTTH                                                 1,899    1,717      10.6 
 Corporate Data, ICT and Digital Services             1,312    1,132      15.8 
 Handsets and Electronics                               909      881       3.2 
 Other Revenues(1)                                      999    1,114    (10.3) 
Total Costs                                         (8,687)  (8,269)       5.1 
EBITDA                                                5,704    5,277       8.1 
 EBITDA Margin                                       39.6 %   39.0 %  0.7 p.p. 
EBITDA AL(2)                                          4,376    4,047       8.1 
 EBITDA AL(2) Margin                                 30.4 %   29.9 %  0.5 p.p. 
Net Income                                            1,058      896      18.1 
Earnings per Share (EPS)                               0.65     0.54      20.3 
 
CAPEX ex-IFRS 16                                      1,869    1,874     (0.3) 
Operating Cash Flow (OpCF)                            3,835    3,403      12.7 
 OpCF Margin                                         26.7 %   25.1 %  1.5 p.p. 
Operating Cash Flow AL (OpCF AL)(2)                   2,508    2,173      15.4 
 OpCF AL(2) Margin                                   17.4 %   16.0 %  1.4 p.p. 
Free Cash Flow                                        2,124    2,380    (10.7) 
 
Total Subscribers (Thousand)                        116,127  113,481       2.3 
 
1 -- Other Revenues include Voice, xDSL, FTTC and IPTV. 2 
 -- AL means After Leases. 
 

Net revenue expanded by +6.2% YoY, driven by the strong performance of postpaid (+10.3% YoY) and fiber (+10.6% YoY) revenues. Postpaid's performance is supported by the increase in the customer base (+7.7% YoY), that ended the quarter with 67.4 million accesses due to significant migrations and the acquisition of new customers. Additionally, the impact of annual price adjustments contributed to the +2.0% YoY increase in postpaid ARPU, excluding M2M and dongles, reaching R$52.2.

Fixed revenue increased +6.2% YoY, supported by strong growth in FTTH (+10.6% YoY) and Corporate Data, ICT, and Digital Services revenues (+15.8% YoY) in 1Q25. Our FTTH network reached 29.6 million homes passed (+10.5% YoY), with 7.2 million homes connected (+12.9% YoY).

EBITDA grew by +8.1% YoY, with a margin of 39.6%, an increase of +0.7 p.p. in the annual comparison. EBITDA AL also expanded by +8.1% YoY, with a margin of 30.4% (+0.5 p.p. YoY).

In 1Q25, Capex totaled R$1,869 million, a decrease of -0.3% YoY, representing 13.0% of revenues (-0.9 p.p. YoY), reflecting the reduction in Capex intensity over net revenue. Investments were directed towards strengthening our 5G network, which is already present in 519 cities (+2.9x YoY), covering 62% of the Brazilian population, and expanding our fiber operation.

Operating Cash Flow totaled R$3,835 million (+12.7% YoY), with a margin of 26.7% (+1.5 p.p. YoY) over net revenue.

Net income attributed to Telefônica Brasil reached R$1,058 million in the quarter, an increase of +18.1% YoY. The remuneration paid to shareholders totaled R$2,576 million by the end of April 2025. Additionally, on July 15, 2025, we will pay R$2,000 million related to the second capital reduction event. The Company has just deliberated an additional R$500 million in interest on equity, totaling R$1,120 million up to May 2025. We committed to distribute to our shareholders an amount equal to or greater than 100% of net income for each fiscal year from 2024 to 2026. In 2024, we met the guidance, with a payout of 105.3% of net income.

TELEFÔNICA BRASIL -- Investor Relations

ir.br@telefonica.com

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.

(END) Dow Jones Newswires

May 12, 2025 18:43 ET (22:43 GMT)