Sao Paulo, Brazil--(Newsfile Corp. - July 28, 2025) - Telefônica Brasil (B3: VIVT3) (NYSE: VIV) announces its results for 2Q25.
Strong operating performance led to robust Revenue, EBITDA and Net Income growth.
| R$ million | 2Q25 | 2Q24 | % Y-o-Y | ||||||
| Net Operating Revenue | 14,645 | 13,679 | 7.1 | ||||||
| Mobile Services | 9,555 | 8,907 | 7.3 | ||||||
| FTTH | 1,940 | 1,757 | 10.4 | ||||||
| Corporate Data, ICT and Digital Services | 1,361 | 1,128 | 20.7 | ||||||
| Handsets and Electronics | 820 | 817 | 0.3 | ||||||
| Other Revenues¹ | 969 | 1,070 | (9.5 | ) | |||||
| Total Costs | (8,712 | ) | (8,224 | ) | 5.9 | ||||
| EBITDA | 5,933 | 5,455 | 8.8 | ||||||
| EBITDA Margin | 40.5% | 39.9% | 0.6 p.p. | ||||||
| EBITDA AL² | 4,607 | 4,216 | 9.3 | ||||||
| EBITDA AL² Margin | 31.5% | 30.8% | 0.6 p.p. | ||||||
| Net Income³ | 1,344 | 1,222 | 10.0 | ||||||
| Earnings per Share (EPS)4 | 0.42 | 0.37 | 12.2 | ||||||
| CAPEX ex-IFRS 165 | 2,439 | 2,341 | 4.2 | ||||||
| Operating Cash Flow (OpCF)6 | 3,494 | 3,114 | 12.2 | ||||||
| OpCF6 Margin | 23.9% | 22.8% | 1.1 p.p. | ||||||
| Operating Cash Flow AL (OpCF AL)7 | 2,168 | 1,875 | 15.6 | ||||||
| OpCF AL7 Margin | 14.8% | 13.7% | 1.1 p.p. | ||||||
| Free Cash Flow | 2,979 | 3,089 | (3.5 | ) | |||||
| Total Subscribers (Thousand) | 116,190 | 114,683 | 1.3 |
1 - Other Revenues include Fixed Voice, xDSL, FTTC and IPTV. 2 - AL means After Leases. 3 - Net Income attributable to Telefônica Brasil. 4 - Earnings per Share (EPS) calculated based on net income attributable to Telefônica Brasil divided by the weighted average of outstanding shares in the period. EPS for 2024 was calculated considering the effects of the Split and Reverse Stock Split effective on April 15, 2025. 5 - Does not include amounts related to IFRS 16 effects. 6 - Operating Cash Flow is equivalent to EBITDA less Capex ex-IFRS 16. 7 - AL Operating Cash Flow is equivalent to EBITDA After Leases less Capex ex-IFRS 16.
Net revenue expanded by +7.1% YoY, driven by a strong performance on postpaid (+10.6% YoY) and fiber (+10.4% YoY) revenues. Postpaid's performance is supported by the increase in the customer base (+7.0% YoY), that ended the quarter with 68.5 million accesses due to significant migrations and the acquisition of new customers. Additionally, the impact of annual price adjustments contributed to the +5.1% YoY increase in mobile ARPU, that reached the highest value in the Company's history, R$31.1.
Fixed revenue increased +8.0% YoY, supported by strong growth in FTTH (+10.4% YoY) and Corporate Data, ICT, and Digital Services revenues (+20.7% YoY) in 2Q25. Our FTTH network reached 30.1 million homes passed (+10.2% YoY), with 7.4 million homes connected (+12.6% YoY).
EBITDA grew by +8.8% YoY, with a margin of 40.5%, an increase of +0.6 p.p. in the annual comparison. EBITDA AL expanded by +9.3% YoY, with a margin of 31.5% (+0.6 p.p. YoY).
In 2Q25, Capex totaled R$2,439 million, an increase of +4.2% YoY, representing 16.7% of revenues (-0.5 p.p. YoY), reflecting the reduction in Capex intensity over net revenue. Investments were mainly directed to the strengthening of our 5G network, which is already present in 596 cities (+2.6x YoY), covering 64% of the Brazilian population, and expanding our fiber operation, with consistent growth in homes passed (+10.2% YoY).
Operating Cash Flow totaled R$3,494 million (+12.2% YoY), with a margin of 23.9% (+1.1 p.p. YoY) over net revenue.
Net income attributed to Telefônica Brasil reached R$1,344 million in the quarter, an increase of +10.0% YoY.
The remuneration paid to shareholders totaled R$5,233 million by the end of July 2025. Recently, on July 15, 2025, we paid R$2,000 million related to the second capital reduction event. The Company has just deliberated an additional R$330 million in interest on equity, totaling R$1.7 billion to be paid until April 30, 2026. 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. As a reminder, in 2024, we met the guidance, with a payout of 105.3%.
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/260447
