SÃO PAULO, July 29, 2024 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3; NYSE: VIV), announces its results for 2Q24.
2Q24 Results: Telefônica Brasil S.A.
Strong operating performance leading to above-inflation growth in revenues, EBITDA and net income.
R$ million | 2Q24 | 2Q23 | % Y-o-Y | 6M24 | 6M23 | % Y-o-Y |
Net Operating Revenue | 13,679 | 12,733 | 7.4 | 27,225 | 25,454 | 7.0 |
Mobile Services | 8,907 | 8,184 | 8.8 | 17,609 | 16,149 | 9.0 |
FTTH | 1,757 | 1,501 | 17.1 | 3,474 | 2,997 | 15.9 |
Corporate Data, ICT and others | 1,128 | 1,042 | 8.3 | 2,260 | 2,135 | 5.9 |
Electronics | 817 | 743 | 9.9 | 1,698 | 1,597 | 6.3 |
Other Revenues¹ | 1,070 | 1,263 | (15.3) | 2,184 | 2,575 | (15.2) |
Total Costs | (8,224) | (7,648) | 7.5 | (16,493) | (15,426) | 6.9 |
EBITDA | 5,455 | 5,085 | 7.3 | 10,732 | 10,027 | 7.0 |
EBITDA / Net Revenue Margin | 39.9 % | 39.9 % | (0.1) p.p. | 39.4 % | 39.4 % | 0.0 p.p. |
EBITDA AL | 4,216 | 3,927 | 7.3 | 8,263 | 7,711 | 7.2 |
EBITDA AL / Net Revenue Margin | 30.8 % | 30.8 % | (0.0) p.p. | 30.4 % | 30.3 % | 0.1 p.p. |
Net Income | 1,222 | 1,123 | 8.9 | 2,118 | 1,957 | 8.2 |
Earnings per Share (EPS) | 0.74 | 0.68 | 9.5 | 1.28 | 1.18 | 8.8 |
CAPEX ex-IFRS 16 | 2,341 | 2,353 | (0.5) | 4,215 | 4,039 | 4.4 |
Operating Cash Flow (OpCF) | 3,114 | 2,732 | 14.0 | 6,517 | 5,988 | 8.8 |
OpCF/ Net Revenue Margin | 22.8 % | 21.5 % | 1.3 p.p. | 23.9 % | 23.5 % | 0.4 p.p. |
Operating Cash Flow AL (OpCF AL) | 1,875 | 1,575 | 19.1 | 4,048 | 3,672 | 10.2 |
OpCF AL / Net Revenue Margin | 13.7 % | 12.4 % | 1.3 p.p. | 14.9 % | 14.4 % | 0.4 p.p. |
Free Cash Flow | 3,089 | 2,508 | 23.1 | 5,469 | 5,638 | (3.0) |
Total Subscribers (Thousand) | 114,683 | 111,940 | 2.5 | 114,683 | 111,940 | 2.5 |
1 - Other Revenues includes Voice, xDSL, FTTC and IPTV.
Net revenue grew (+7.4% YoY), driven by the strong performance of Mobile Service Revenue (MSR) (+8.8 YoY), which was boosted by the growth of Postpaid Revenue (+9.7% YoY). Postpaid's strong performance is related to the increase in customer base (+7.2% YoY), both due to migrations from prepaid as well as to the acquisition of new customers, annual price adjustments, and by maintaining postpaid's (ex-M2M) churn in historical low levels, 0.99% per month.
Fixed revenue had the biggest increase since 2015, +3.9% YoY, mainly driven by the increase in FTTH Revenue, which continued to expand strongly (+17.1% YoY) in 2Q24. FTTH network is currently present in 444 cities (+5 cities YoY) with 27.3 million homes passed (+10.5% YoY) and 6.5 million homes connected (+12.7% YoY).
EBITDA totaled R$5,455 million (+7.3% YoY), with a margin of 39.9% (-0.1 p.p. YoY), due to the strong service revenue performance.
Operating Cash Flow totaled R$3,114 million (+14.0% YoY), with a margin of 22.8% (+1.3 p.p. YoY) over net revenue. In 2Q24, Capex ex-IFRS16 totaled R$2,341 million (-0.5% YoY) or 17.1% of revenues (-1.4 p.p. YoY), directed towards strengthening our mobile network.
Net income attributed to Telefônica Brasil reached R$1,222 million in 2Q24 (+8.9% YoY). Shareholder remuneration paid up in 2024 reached, so far, R$4,137 million, of which R$2,190 million in interest of capital, R$1,500 million from the resources resulting from the capital reduction, while R$447 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.
