4Q24 Results: Telefônica Brasil S.A.

Telefônica Brasil – (B3: VIVT3; NYSE: VIV) announces its results for 4Q24.

Strong operating performance led to robust net income growth and free cash flow generation.

R$ million 4Q24 4Q23 % Y-o-Y 2024 2023 % Y-o-YNet Operating Revenue 14,581 13,535 7.7 55,845 52,100 7.2Mobile Services 9,201 8,602 7.0 36,022 33,216 8.4FTTH 1,829 1,627 12.4 7,093 6,195 14.5Corporate Data, ICT and Digital Services 1,346 1,111 21.1 4,735 4,307 9.9Handsets and Electronics 1,177 1,042 13.0 3,730 3,453 8.0Other Revenues(1) 1,029 1,153 (10.7) 4,265 4,930 (13.5)Total Costs (8,383) (7,783) 7.7 (32,965) (30,782) 7.1EBITDA 6,199 5,752 7.8 22,880 21,318 7.3EBITDA Margin 42.5% 42.5% 0.0 p.p. 41.0% 40.9% 0.1 p.p.EBITDA AL² 4,831 4,461 8.3 17,796 16,572 7.4EBITDA AL Margin 33.1% 33.0% 0.2 p.p. 31.9% 31.8% 0.1 p.p.Net Income 1,763 1,601 10.1 5,548 5,029 10.3Earnings per Share (EPS) 1.08 0.97 11.5 3.38 3.03 11.3CAPEX ex-IFRS 16 2,456 2,295 7.0 9,166 8,960 2.3Operating Cash Flow (OpCF) 3,742 3,457 8.2 13,714 12,358 11.0OpCF Margin 25.7% 25.5% 0.1 p.p. 24.6% 23.7% 0.8 p.p.Operating Cash Flow AL (OpCF AL) 2,374 2,167 9.6 8,629 7,612 13.4OpCF AL Margin 16.3% 16.0% 0.3 p.p. 15.5% 14.6% 0.8 p.p.Free Cash Flow 1,080 592 82.4 8,219 8,148 0.9Total Subscribers (Thousand) 116,050 113,001 2.7 116,050 113,001 2.7

1 – Other Revenues include Voice, xDSL, FTTC and IPTV. 2 – AL means After Leases.

Net revenue grew (+7.7% YoY), driven by the strong performance of mobile postpaid revenue (+9.1% YoY). Postpaid's performance is related to the increase in customer base (+7.6% YoY), which totaled 66.5 million in the quarter, driven by migrations from prepaid and the addition of new customers, that contributed to the +1.6% YoY increase in postpaid ex-M2M and ex-dongles ARPU, to R$52.1, while churn stood at historically low levels, 0.99%.

Fixed revenueincreased +8.0% YoY, driven by the FTTH (+12.4% YoY) and Corporate Data, ICT and Digital Services (+21.1% YoY) revenues. Our FTTH network reached 29.1 million homes passed (+11.2% YoY), with 7.0 million homes connected (+12.7% YoY).

EBITDA expanded +7.8% YoY, with a margin of 42.5%, flat when comparing to 4Q23. EBITDA AL expanded by +8.3% YoY, with a margin of 33.1% (+0.2 p.p. YoY).

In 2024, Capex totaled R$9,166 million (+2.3% YoY), equivalent to 16.4% of revenues (-0.8 p.p. YoY), reflecting a decrease in investment intensity. Investments were directed towards strengthening our 5G network, which is already present in 504 cities (+2.9x YoY), covering 61.3% of the Brazilian population, and expanding our fiber operation.

Operating Cash Flow for the year was R$13,714 million (+11.0% YoY), with a margin of 24.6% (+0.8 p.p. YoY) over net revenue.

Net incomeattributed to Telefônica Brasil reached R$5,548 million in 2024 (+10.3% YoY). The Company delivered on its guidance of shareholder remuneration paid in 2024, distributing R$5,845 million (vs R$4,786 million in 2023), a growth of +22.1% YoY, reflecting a payout over net income of 105.3%. For the years 2025 and 2026, the Company reaffirms its commitment to distribute an amount equal to or greater than 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

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SOURCE Telefônica Brasil S.A.

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