Oi’s Q4 Losses Deepen to R$2.9 Billion Despite Successful Annual Turnaround

Brazilian telecommunications giant Oi S.A. (OIBR3) reported a net loss of R$2.9 billion ($509 million) for the fourth quarter of 2024. The company released these figures in its latest financial report, showing losses six times larger than the same period in 2023.

Despite the challenging quarter, Oi achieved an annual profit of R$9.6 billion ($1.68 billion) for the full year 2024. This marks a significant turnaround from the R$5.4 billion ($947 million) loss recorded in 2023.

The company attributed this reversal primarily to successful asset sales and debt restructuring. The telecom provider, currently operating under judicial reorganization since 2016, saw its quarterly EBITDA decline to negative R$641 million ($112 million).

This represents a substantial deterioration from the negative R$72 million ($12.6 million) posted in Q4 2023. Revenue also decreased by 17.5% year-over-year to R$1.9 billion ($333 million).

Financial expenses doubled to R$2 billion ($351 million) compared to the same quarter last year. The company consumed R$237 million ($41.6 million) in cash during the final quarter of 2024.

However, Oi ended the period with R$1.8 billion ($315.8 million) in cash reserves, up 35% from the previous quarter. Oi made substantial progress in debt reduction throughout 2024.

Oi’s Debt Reduction and Restructuring Progress

Gross debt fell by 53.1% year-over-year to R$12 billion ($2.1 billion). This aligns with the company’s restructuring strategy approved by creditors at a General Creditors Meeting on April 19, 2024.

Management emphasized in its earnings release that 2024 brought significant advances toward long-term operational and financial sustainability. Oi aims to transform into a “simpler, lighter and more efficient” organization focused on dynamic IT infrastructure and digital service delivery.

The restructuring plan offers Class III financial creditors several recovery options, including debt-to-equity conversion and cash payouts. This plan follows one of the largest court-supervised reorganizations in Brazil’s history, which began in 2016 with approximately R$65 billion ($11.4 billion) in liabilities.

Oi now prioritizes the expansion of its fiber network while participating in V.tal, Brazil’s first neutral end-to-end network company. The company expects to announce its next earnings results on March 27, 2025, as it continues navigating its financial transformation and shifting focus toward B2B market solutions.

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