Postpaid and Fiber Drive 18.1% Earnings Growth for Telefônica Brasil in Q1 2025

Telefônica Brasil S.A., Brazil’s largest telecom operator, reported a first-quarter net profit of R$1.06 billion ($186 million), an 18.1% annual increase matching analyst forecasts compiled by LSEG.

Revenue rose 6.2% to R$14.39 billion ($2.52 billion), powered by postpaid mobile plans and fiber optic expansion. The company announced a R$500 million ($87.7 million) shareholder payout via interest on equity, payable by April 2026.

Postpaid mobile revenue grew 10.3% to R$10.18 billion ($1.79 billion), while fiber revenue jumped 10.6% as coverage reached 78% of Brazil’s GDP-generating areas.

EBITDA climbed 8.1% to R$5.7 billion ($1.0 billion), with margins improving to 39.6% despite inflationary pressures. Operational costs rose 5.2% to R$6.03 billion ($1.06 billion), below revenue growth, reflecting disciplined cost management.

The board approved JCP payments of R$0.1543 gross per share ($0.027), totaling R$500 million ($87.7 million) after taxes. Shareholders of record by May 22, 2025, will receive payouts, continuing a policy that returned R$2.58 billion ($452.6 million) in April alone.

Telefônica Brasil Boosts Margins and Expands 5G

Net debt held steady at 1.3x EBITDA, with liquidity covering obligations through 2027. Fixed-line revenue increased 6.2% to R$4.2 billion ($737 million), while corporate data and digital services surged 15.8%.

Handset sales dipped 3%, underscoring a strategic shift to high-margin connectivity services. Return on invested capital improved to 12.4% from 11.7% a year earlier, driven by fiber and 5G investments.

Telefônica Brasil now serves 67.4 million postpaid mobile users, up 7.7% annually, and 29.6 million fiber homes. Its 5G network spans 519 cities, covering 62% of Brazil’s population.

Analysts highlight margin resilience amid rising competition, crediting infrastructure dominance in urban centers. Shares closed at R$48.20 ($8.46) on May 12, up 12% year-to-date.

The results reinforce the operator’s pivot to premium services, with postpaid and fiber comprising 72.9% of service revenue. Management prioritizes sustaining cash flows for shareholder returns while expanding high-speed networks, positioning the firm to lead Brazil’s digital transition.

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