Telefônica Brasil Achieves 10% Profit Growth in Q4 2024
Telefônica Brasil (B3: VIVT3; NYSE: VIV), the operator of Vivo, reported a net profit of R$1.76 billion ($293M) in the fourth quarter of 2024, marking a 10.1% year-over-year increase.
The results, announced on February 25, met market expectations of R$1.7 billion ($283M), as compiled by LSEG. They highlighted the company’s operational resilience and strategic focus.
The company’s EBITDA rose 7.8% year-over-year to R$6.2 billion ($1.03B), maintaining a stable margin of 42.5%. Net operating revenue grew by 7.7%, reaching R$14.6 billion ($2.43B). This growth was driven by gains across mobile services, fiber broadband (FTTH), and corporate digital solutions.
Mobile services revenue increased by 7%, fueled by a 9.1% rise in postpaid revenue as the customer base expanded 7.6% to 66.5 million subscribers. Postpaid churn remained low at 0.99%, while average revenue per user (ARPU) for postpaid services edged up to R$52.1.
Fixed-line services also contributed significantly, with FTTH revenue surging 12.4% year-over-year as Telefônica Brasil expanded its fiber network to cover 29.1 million homes (+11.2%). Of these, 7 million homes were connected (+12.7%).
Corporate data and digital services revenue grew by an impressive 21.1%, reflecting the company’s focus on diversifying its offerings. For the full year of 2024, Telefônica Brasil achieved a net income of R$5.55 billion ($925M), a 10.3% increase.
Telefônica Brasil’s Strong Shareholder Returns
The company distributed R$5.85 billion ($975M) to shareholders, a 22.1% increase from the prior year, representing a payout ratio of over 100%. The company reaffirmed its commitment to maintaining this high level of shareholder remuneration through at least 2026.
Capital expenditures totaled R$9.17 billion ($1.53B) in 2024, equivalent to 16.4% of revenues, reflecting a disciplined investment approach while expanding its fiber operations and strengthening its 5G network, now covering over 61% of Brazil’s population across 504 cities.
Telefônica Brasil also announced a share buyback program worth up to R$1.75 billion ($292M). The program will involve up to 34.7 million shares through February 2026.
These moves underscore the company’s confidence in its cash flow generation and operational strategy. They highlight its ability to navigate Brazil’s competitive telecommunications market with sustained growth momentum.
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