How did VIV's Q4 earnings surprise impact annual trends?

VIV's Q4 earnings did not provide a surprise, as the company's performance was in line with expectations, with a reported EPS of $0.15 per share, which matched analysts' estimates. However, this performance had a significant impact on VIV's annual trends, as it reflected the company's consistent growth and profitability over the past year.

1. **Revenue Growth**: VIV's total revenues increased by 7.1% driven by an 8.8% growth in mobile service revenues. This growth is a positive indicator, suggesting that VIV's business model is effective and that it is successfully capturing market opportunities.
2. **EBITDA Growth**: The EBITDA margin expanded to 42.4%, reflecting improved operational efficiency and profitability. This is a strong point, as it indicates that VIV is generating more earnings from its operations, which is a key metric for assessing the company's financial health.
3. **Cash Flow and Free Cash Flow**: VIV achieved an operating cash flow of BRL 10 billion, representing a 12% year-over-year growth. The company also accumulated BRL 7.1 billion in free cash flow, which is a positive signal, indicating that VIV has sufficient financial flexibility and is generating strong cash flows.
4. **Customer Base Growth**: The overall customer base grew by 7.6%, with significant growth in FTTH connections by 12.5%. This is a strong point, as it indicates that VIV is successfully expanding its customer base and increasing its market share.
5. **B2C and B2B Revenue Growth**: The B2C segment represented 77% of total revenue and grew by 7.5% over the last 12 months, while the B2B segment accounted for 21% of total revenue and grew by 6.5% year-over-year. This diversification in revenue streams is a positive trend, as it reduces dependence on a single market segment and increases overall revenue stability.

In conclusion, VIV's Q4 earnings performance reinforced the company's annual trends of strong revenue growth, improved profitability, and effective cash flow management. These factors are likely to have a positive impact on the company's future prospects, as they demonstrate VIV's ability to generate consistent earnings and cash flows, and its success in expanding its customer base and market share.