Did Telefonica Brazil beat or miss consensus estimates last quarter?

What is Telefonica Brazil's latest dividend and current dividend yield?

What were the key takeaways from Telefonica Brazil’s earnings call?

What were the key takeaways from Telefonica Brazil's earnings call?

What is the market's earnings forecast for Telefonica Brazil next quarter?

What factors drove the changes in Telefonica Brazil's revenue and profit?

What is Telefonica Brazil's gross profit margin?

What is the revenue and EPS growth rate for Telefonica Brazil year over year?

- **Revenue Momentum**: 6.5% total revenue growth, 5.5% mobile service expansion, and 12.7% FTTH connections growth. Postpaid net adds hit 1 million, lowest churn at 0.98%.
- **Digital Leadership**: B2B digital revenue up 34.2% year-over-year, IoT deals (e.g., 4.4M smart meters) driving growth. Vivo Total ARPU at BRL 230/month.
- **Financial Strength**: EBITDA +9% to BRL 6.5B, operating cash flow +12.4% to BRL 11.2B. Asset sales target BRL 4.5B over 3 years.
- **Sustainability**: "Futuro Vivo Forest" preserves 800 hectares of rainforest. Ranked #1 in Brazil's sustainability index and recognized for shared value creation.
- **Shareholder Returns**: Distributed BRL 5.7B to shareholders in Q3, with plans to return 100% of net income in 2025-2026.

**【CEO Summary Section】**
- **Revenue Growth**: Total revenue increased by 6.5% year-over-year, driven by mobile and fixed services. Mobile service revenue grew 5.5%, while fixed services expanded 9.6%. Postpaid mobile access reached 68% of the customer base, with net adds surpassing 1 million in Q3.
- **Customer Retention**: Postpaid churn (excluding M2M and dongles) dropped to 0.98%, the lowest level on record. ARPU rose 3.9% year-over-year to BRL 31.5.
- **Fiber Expansion**: FTTH connections grew 12.7% year-over-year, with 7.6 million homes passed. The Vivo Total converged offer now accounts for 62% of fiber connections, driving higher ARPU and lower churn.
- **ESG Initiatives**: Launched the "Futuro Vivo Forest" project to preserve 800 hectares of Amazon rainforest, aligning with sustainability goals. Ranked first in Brazil's Corporate Sustainability Index (ISE B3) and recognized as a top company for shared value creation.

**【CFO Financial Commentary】**
- **Profitability**: EBITDA grew 9% year-over-year to BRL 6.5 billion, with a margin expansion to 43.4%. Operating cash flow reached BRL 11.2 billion (12.4% year-over-year growth), while free cash flow stood at BRL 6.9 billion.
- **Asset Sales**: Generated BRL 232 million from copper and real estate sales in Q3, with a target to achieve BRL 4.5 billion in asset sales over the next three years.
- **Cost Management**: Commercial and infrastructure costs rose 4.6% year-over-year, partially offset by digitalization efficiencies. CapEx-to-revenue ratio improved by 60 basis points to 15.7%.

**【Q&A Highlights】**
- **Mobile Competitiveness**: Prepaid revenue showed sequential growth, while postpaid net adds hit a record 1 million. ARPU growth and customer retention strategies offset price competition.
- **B2B Digital Expansion**: Digital services revenue grew 34.2% year-over-year, driven by IoT (e.g., 4.4 million smart meters with Sabesp) and cybersecurity solutions. Targeting 15% penetration of digital services in SMEs.
- **CapEx and Leasing**: Leasing costs are expected to decline as tower sharing improves (1.4 tenants per tower vs. 2+ in mature markets). FiBrasil acquisition (pending antitrust approval) will add 30 million homes passed with minimal CapEx impact.
- **ESG and Shareholder Returns**: Distributed BRL 5.7 billion to shareholders through interest on capital and buybacks, with plans to allocate at least 100% of net income to returns in 2025-2026.

Telefônica Brasil S.A. (VIV) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

VIV

VIV fundamentals

You can ask Aime