1Q25 Results: Telefônica Brasil S.A.

Telefônica Brasil – (B3: VIVT3; NYSE: VIV) announces its results for 1Q25.

Strong operating performance led to robust EBITDA and net income growth.

R$ million 1Q25 1Q24 % YoYNet Operating Revenue 14,390 13,546 6.2Mobile Services 9,272 8,702 6.5FTTH 1,899 1,717 10.6Corporate Data, ICT and Digital Services 1,312 1,132 15.8Handsets and Electronics 909 881 3.2Other Revenues(1) 999 1,114 (10.3)Total Costs (8,687) (8,269) 5.1EBITDA 5,704 5,277 8.1EBITDA Margin 39.6% 39.0% 0.7 p.p.EBITDA AL² 4,376 4,047 8.1EBITDA AL² Margin 30.4% 29.9% 0.5 p.p.Net Income 1,058 896 18.1Earnings per Share (EPS) 0.65 0.54 20.3CAPEX ex-IFRS 16 1,869 1,874 (0.3)Operating Cash Flow (OpCF) 3,835 3,403 12.7OpCF Margin 26.7% 25.1% 1.5 p.p.Operating Cash Flow AL (OpCF AL)² 2,508 2,173 15.4OpCF AL² Margin 17.4% 16.0% 1.4 p.p.Free Cash Flow 2,124 2,380 (10.7)Total Subscribers (Thousand) 116,127 113,481 2.31 – Other Revenues include Voice,xDSL, FTTC and IPTV.2 – AL means After Leases.

Net revenue expanded by +6.2%YoY, driven by the strong performance of postpaid (+10.3% YoY) and fiber (+10.6% YoY) revenues. Postpaid's performance is supported by the increase in the customer base (+7.7% YoY), that ended the quarter with 67.4 million accesses due to significant migrations and the acquisition of new customers. Additionally, the impact of annual price adjustments contributed to the +2.0% YoY increase in postpaid ARPU, excluding M2M and dongles, reaching R$52.2.

Fixed revenueincreased +6.2% YoY, supported by strong growth in FTTH (+10.6% YoY) and Corporate Data, ICT, and Digital Services revenues (+15.8% YoY) in 1Q25. Our FTTH network reached 29.6 million homes passed (+10.5% YoY), with 7.2 million homes connected (+12.9% YoY).

EBITDA grew by +8.1% YoY, with a margin of 39.6%, an increase of +0.7 p.p. in the annual comparison. EBITDA AL also expanded by +8.1% YoY, with a margin of 30.4% (+0.5 p.p. YoY).

In 1Q25, Capex totaled R$1,869 million, a decrease of -0.3% YoY, representing 13.0% of revenues (-0.9 p.p. YoY), reflecting the reduction in Capex intensity over net revenue. Investments were directed towards strengthening our 5G network, which is already present in 519 cities (+2.9x YoY), covering 62% of the Brazilian population, and expanding our fiber operation.

Operating Cash Flow totaled R$3,835 million (+12.7% YoY), with a margin of 26.7% (+1.5 p.p. YoY) over net revenue.

Net incomeattributed to Telefônica Brasil reached R$1,058 million in the quarter, an increase of +18.1% YoY. The remuneration paid to shareholders totaled R$2,576 million by the end of April 2025. Additionally, on July 15, 2025, we will pay R$2,000 million related to the second capital reduction event. The Company has just deliberated an additional R$500 million in interest on equity, totaling R$1,120 million up to May 2025. 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. In 2024, we met the guidance, with a payout of 105.3% of net income.

TELEFÔNICA BRASIL – Investor Relations

ir.br@telefonica.comTo download the complete version of the Company's earnings release, please visit our website: https://ri.telefonica.com.br/en

https://c212.net/c/img/favicon.png?sn=SP86255&sd=2025-05-12

View original content:https://www.prnewswire.com/news-releases/1q25-results-telefonica-brasil-sa-302453046.html

SOURCE Telefônica Brasil S.A.

https://rt.newswire.ca/rt.gif?NewsItemId=SP86255&Transmission_Id=202505121842PR_NEWS_USPR_____SP86255&DateId=20250512