Telefônica Brasil S.A. Reports Strong Growth in 4Q24 Financial Results

Telefônica Brasil S.A. Reports Robust Financial Performance in 4Q24

Telefônica Brasil S.A. (B3: VIVT3; NYSE: VIV) has released its financial results for the fourth quarter of 2024, revealing impressive growth across various metrics. The telecommunications giant reported a notable increase in net income, reflecting a solid operational performance which further contributed to a healthy generation of free cash flow.

Key Financial Figures

In 4Q24, the company posted net operating revenues of R$14,581 million, marking a year-on-year growth of 7.7%, compared to R$13,535 million recorded in 4Q23. This growth trend is also evident in the total revenues for the year, which reached R$55,845 million, up 7.2% from R$52,100 million in 2023.

One of the driving forces behind these results is the substantial performance in mobile services. Revenue from mobile operations reached R$9,201 million in the fourth quarter, which is a 7.0% increase from the previous year. For the full year, mobile services posted revenues of R$36,022 million, translating to an 8.4% growth compared to 2023.

Broadband services, particularly Fiber to the Home (FTTH), showed remarkable improvement, generating R$1,829 million in the fourth quarter, which is 12.4% higher year-on-year. FTTH revenues for 2024 amounted to R$7,093 million, with an impressive 14.5% growth relative to the previous year.

Profitability Metrics

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) continues to showcase strong performance, with a reported figure of R$6,199 million in 4Q24—up 7.8% from R$5,752 million in the same quarter last year. This indicates that the EBITDA margin remained steady at 42.5%, reflecting the company's ability to manage costs effectively while pursuing growth.

Moreover, the overall net income attributed to Telefônica Brasil climbed to R$1,763 million for 4Q24, an increase of 10.1% from R$1,601 million in 4Q23. For the full year, net income reached R$5,548 million, marking a robust growth of 10.3% compared to the prior year.

Customer Base and Investment Strategies

Telefônica Brasil's commitment to enhancing customer experience is reflected in its growing subscriber base. The carrier reported a total of 116 million subscribers by the end of the fourth quarter, which is a 2.7% increase compared to 113 million in 4Q23. This growth was largely attributed to migrations from prepaid plans to postpaid subscriptions, which saw a significant boost.

In terms of capital expenditures, the company recorded investments of R$9,166 million for the full year, indicating a slight increase of 2.3% year-on-year. This equates to 16.4% of total revenues, down from the previous year's figure, but highlights a strategic focus on strengthening the 5G network. By the end of 2024, Telefônica Brasil's 5G network reached 504 cities, covering approximately 61.3% of the Brazilian population, and the company is actively working to expand its fiber operations as well.

Looking Ahead

Looking forward, Telefônica Brasil is reaffirming its commitment to delivering consistent returns to its shareholders. The company plans to distribute R$5,845 million in shareholder remuneration for 2024, a 22.1% increase compared to R$4,786 million in 2023. This aligns with the company's strategy to allocate a payout of equal to or greater than 100% of net income for the fiscal years 2025 and 2026, reinforcing confidence in its financial health and operational strategies.

For further details on Telefônica Brasil’s financial performance, you may access the full earnings report on their official website: Telefônica RI.

In conclusion, the exceptional growth reported by Telefônica Brasil in 4Q24 stands as a testament to its effective business strategies and commitment to customer satisfaction in a highly competitive telecommunications market.