Group 1 - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] - The Zacks Style Scores rate stocks based on value, growth, and momentum characteristics, helping investors identify securities with high potential for market outperformance [2][3] Group 2 - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E and Price/Sales, appealing to value investors [3] - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings and cash flow [4] - The Momentum Score assists traders in capitalizing on price trends, utilizing factors like recent price changes and earnings estimate shifts [5] Group 3 - The VGM Score combines the three Style Scores to identify stocks with attractive value, strong growth forecasts, and positive momentum, serving as a useful indicator alongside the Zacks Rank [6] - The Zacks Rank, a proprietary stock-rating model, uses earnings estimate revisions to simplify portfolio building for investors [7][10] Group 4 - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - To optimize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while being cautious with 3 ranked stocks [9][10] Group 5 - Telefonica Brasil S.A., the largest telecom operator in Brazil, holds a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating potential for value investors [11] - The company has seen an upward revision in earnings estimates for fiscal 2024, with the Zacks Consensus Estimate increasing by $0.02 to $0.63 per share, and an average earnings surprise of 10% [12]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1][2] Zacks Style Scores - Zacks Style Scores are indicators that help investors select stocks likely to outperform the market in the next 30 days, rated from A to F based on value, growth, and momentum characteristics [3][4][5][6][7] Value Score - The Value Style Score focuses on identifying undervalued stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [4] Growth Score - The Growth Style Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify those with sustainable growth potential [5] Momentum Score - The Momentum Style Score assesses stocks based on price trends and earnings outlook changes, indicating optimal times to invest in high-momentum stocks [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with attractive value, growth forecasts, and promising momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, outperforming the S&P 500 [8][9] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering the direction of earnings estimate revisions [11][12][13] Company Spotlight: Telefonica Brasil - Telefonica Brasil S.A., the largest telecom operator in Brazil by revenue, holds a Zacks Rank of 3 (Hold) and a VGM Score of A, with a Value Style Score of A due to a forward P/E ratio of 12.83 [14][15] - Recent upward revisions in earnings estimates for fiscal 2024 indicate a consensus estimate increase of $0.02 to $0.63 per share, with an average earnings surprise of 10% [15][16]

Financial Data and Key Metrics Changes - Total revenues increased by 7.1% year-over-year, primarily driven by mobile service revenues which grew by 8.8% [7][8] - EBITDA grew by 7.4% year-over-year, with an EBITDA margin of 42.4% [20][22] - Year-to-date net income reached a 10.4% year-over-year increase, totaling BRL6.8 billion [22][23] - Free cash flow generation reached BRL7.1 billion, resulting in a free cash flow yield of 8.4% over the last 12 months [22][23] Business Line Data and Key Metrics Changes - Postpaid customer base increased by 7.6%, with postpaid revenues growing by 10.4% [7][9] - Fiber homes connected with FTTH grew by 12.5%, reaching 6.7 million users [11][12] - B2C segment represented 77% of total revenues, growing by 7.5% year-over-year, while B2B segment grew by 6.5% [13][15] Market Data and Key Metrics Changes - Vivo's market share in 5G access increased to nearly 40%, with 13.8 million 5G users [10] - The company reached 28.3 million homes passed with FTTH, achieving 98% of its goal for the year [11] - The average monthly revenue per B2C customer was BRL61.5, reflecting a strong customer-centric approach [14] Company Strategy and Development Direction - The company aims to maintain its leadership position through a diversified portfolio of services and a focus on digital transformation [6][8] - Vivo Total, a convergent offer, is expected to reduce churn and enhance customer loyalty [12] - The company is committed to optimizing CapEx while continuing to grow revenues, particularly in digital services which now represent 10% of total revenues [21][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining revenue growth above inflation, driven by upselling and migration strategies [30][53] - The competitive landscape is acknowledged, with new entrants being viewed as additional competition rather than a threat [26] - Future CapEx will focus on increasing penetration in new areas while maintaining a strong cash position [40][41] Other Important Information - The company has engaged 87% of its suppliers in climate-related activities as part of its ESG initiatives [16] - Vivo was recognized as one of the top three best companies to work for in Brazil, highlighting its commitment to employee engagement and diversity [17] Q&A Session Summary Question: Competitive environment and pricing strategies - Management acknowledged the entry of new competitors but emphasized their strong market position and ability to offer differentiated services [26] Question: Lease expenses growth - Management explained that lease expenses showed volatility due to negotiations with tower companies, but overall cash flow remains strong [27] Question: Sustainability of mobile service revenue growth - Management confirmed that the growth in mobile service revenue is sustainable, driven by successful migration strategies and upselling [30] Question: CapEx outlook and EBITDA margin sustainability - Management indicated a focus on reducing capital intensity while maintaining strong EBITDA margins through operational efficiencies [33][34] Question: Migration from concession to authorization - Management provided an update on regulatory approvals and expressed confidence in optimizing costs post-migration [37] Question: B2B growth ambitions - Management highlighted significant growth potential in B2B digital services, with only 15% of B2B customers currently utilizing these services [44] Question: Prepaid segment dynamics - Management noted rational strategies in the prepaid segment, focusing on upselling and value-added services to enhance revenue [50]

Telefónica ***Este documento está clasificado como PUBLICO por TELEFÓNICA. ***This document is classified as PUBLIC by TELEFÓNICA. RESULTS 3Q24 November 5 th, 2024 Telefônica Brasil S.A. Investor Relations VI > DISIN SE VIVT B3 LISTED ISEB3 ICO2B3 | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Core Insights - Telefônica Brasil reported strong operating performance in 3Q24, with growth in revenues, EBITDA, and net income, alongside reduced Capex intensity [1] Financial Performance - Net Operating Revenue reached R$14,039 million, a 7.1% increase YoY, driven by Mobile Services revenue growth of 8.8% YoY [2][3] - EBITDA totaled R$5,950 million, reflecting a 7.4% YoY increase, with an EBITDA margin of 42.4% [2][3] - Net Income attributed to Telefônica Brasil was R$1,667 million, marking a 13.3% YoY increase [5] Revenue Breakdown - Mobile Services revenue was R$9,212 million, up 8.8% YoY, supported by a 10.4% increase in postpaid revenue [2] - FTTH revenue grew by 14.0% YoY to R$1,790 million, with the network present in 444 cities and 6.7 million homes connected [3] - Fixed revenue increased by 3.6% YoY, driven by FTTH and Corporate Data, ICT, and Digital Services [3] Cost and Cash Flow - Total Costs increased by 6.8% YoY to R$8,089 million, while Operating Cash Flow reached R$9,972 million, a 12.0% YoY increase [2][4] - Free Cash Flow was R$1,671 million, down 12.9% YoY [2] Capital Expenditure - Capex ex-IFRS 16 was R$2,495 million, a decrease of 5.0% YoY, representing 17.8% of revenues [4] - Investments focused on enhancing mobile network capabilities, particularly 5G coverage, which is now available in 394 cities [4] Shareholder Remuneration - Shareholder remuneration for 2024 was R$4,790 million, with commitments to distribute at least 100% of net income for each fiscal year from 2024 to 2026 [5]

Financial Data and Key Metrics - Total revenues increased by 7.4%, driven by mobile service revenues which grew by 8.8% [21] - EBITDA expanded by 7.3% year-over-year, with operating cash flow reaching R$6.5 billion and free cash flow at R$5.5 billion, representing over 20% of total revenues [21] - Net income grew by 8.2% year-over-year, reaching over R$2 billion in the first semester [30] - Mobile ARPU increased by 6.3% year-over-year, reaching its highest level since 2019 [22] - FTTH ARPU grew by 4% year-over-year, reaching 90.9 [44] Business Line Data and Key Metrics - Mobile access reached 100.9 million, with postpaid access growing by 7.2% year-over-year [154] - FTTH homes connected grew by 12.7%, adding 199,000 new accesses in Q2 2024 [44] - B2B digital services revenues grew by 19% year-over-year, representing 32% of B2B business and 7% of total revenues [45] - Vivo Total convergent plan reached 1.8 million fiber customers, more than doubling year-over-year [73] - Health and wellness revenues amounted to R$37 million over the last 12 months, with 321,000 subscriptions [23] Market Data and Key Metrics - The company reached 27.3 million homes passed with FTTH, up 10.7% year-over-year, aiming for 29 million by year-end [69] - The prepaid to postpaid migration strategy is driving growth, with prepaid access decreasing from 38.1% to 37% [6] - The company's churn rate in postpaid remains under 1%, with Vivo Total customers experiencing a 1 percentage point lower churn compared to stand-alone fiber customers [151] Company Strategy and Industry Competition - The company is focusing on convergence, offering combined fiber and mobile plans, which has led to a significant increase in Vivo Total customers [74] - The company is actively pursuing M&A opportunities in broadband, looking for the right pricing, footprint, and technical quality [5] - The company is expanding its digital services portfolio, including financial services, insurance, and health and wellness offerings [16][23] - The company is accelerating its ESG agenda, aiming for net-zero emissions by 2035 and increasing diversity in leadership roles [84][85] Management Commentary on Operating Environment and Future Outlook - The company is optimistic about the ability to grow and bring more value to customers through a combination of services and digitalization [34] - The company expects to continue improving margins and operating cash flow, driven by new businesses that require no CapEx [130] - The company is confident in its ability to maintain a high shareholder remuneration, with a payout of at least 100% of net income [149] Other Important Information - The company acquired IPNET, a cloud transformation company, which generated R$218 million in revenues last year, up 35% year-over-year [24] - The company is increasing its focus on financial services, with revenues from these services growing by 27% year-over-year to R$450 million [15] - The company is also expanding its insurance offerings, including life, bike, and pet insurance, with 450,000 customers already insured for smartphones [16] Q&A Session Summary Question: What are the main drivers for the strong net adds in mobile? - The market is seeing more opportunities for migration from prepaid to postpaid, with the company's prepaid access decreasing from 38.1% to 37% [6] Question: How robust is the guidance, and does it consider the concession to authorization migration? - The guidance remains unchanged, with a payout of at least 100% of net income, and the migration does not pose a risk to the guidance [145] Question: What are the trends in prepaid ARPU and recharges? - The prepaid market is performing well, with the company increasing its offer to BRL 70 and seeing a revenue increase of BRL 4.9 million [125] Question: What is the company's exposure to FX depreciation? - The company has some exposure to FX, mainly from handset costs, but it has protections in place and will pass any price increases to consumers [131] Question: What are the economic benefits of the migration from concession to authorization? - The migration will allow the company to dedicate investments to digitalization and bring more efficiency to operations, with potential benefits in OpEx and CapEx [121] Question: What are the trends in broadband and FTTH ARPU? - The company is seeing increased broadband growth, driven by higher gross adds and lower churn, with FTTH ARPU growing due to better customer experience and higher speeds [96][106]

VIVT B3 LISTED Growth acceleration in all key lines while customer base reaches its highest level ever YoY YoY Fiber Homes Connected Mobile Service Revenue Free Cash Flow 1H24 R$6.5 bn Total Revenues growing well above inflation, 5 | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|----------------------------------------------------| | | | | | | | | | | | | | Highest ARPU since 2019, due to | | | | | | | increased consumption and improved customer mix | Improved fiber ARPU and n ...

SÃO PAULO, July 29, 2024 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3; NYSE: VIV), announces its results for 2Q24. 2Q24 Results: Telefônica Brasil S.A. Strong operating performance leading to above-inflation growth in revenues, EBITDA and net income. | --- | --- | --- | --- | --- | --- | --- | |----------------------------------|----------|----------|------------|----------|------------------|----------| | | | | | | | | | | | | | | | | | R$ million | 2Q24 | 2Q23 | % Y-o-Y | 6M24 | 6M23 | % Y-o-Y | | Net O ...

Telefônica Brasil S.A. (NYSE:VIV) Q1 2024 Earnings Conference Call May 8, 2024 10:00 AM ET Company Participants João Pedro Soares Carneiro - Investor Relations Director Christian Gebara - Chief Executive Officer David Melcon - Chief Financial Officer & Investor Relations Officer Conference Call Participants Marcelo Santos - JPMorgan Marco Nardini - XP Investimentos Vitor Tomita - Goldman Sachs Carlos de Legarreta - Itau BBA Operator Good morning, ladies and gentlemen. Welcome to Vivo's First Quarter 2024 Ea ...

Telefónica RESULTS 1Q24 May 7th, 2024 Telefônica Brasil S.A. Investor Relations VIV NYSE VIVT B3 LISTED ISEB3 ICO2B3 | --- | --- | --- | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|-- ...