Telefonica Brasil S.A.(VIV) - 2024 Q4 - Annual Report

Financial Performance - Net cash provided by operations was R$19.9 billion in 2024, compared to R$18.8 billion in 2023 and R$18.9 billion in 2022 [702]. - The company distributed dividends and interest on shareholders' equity of R$3.1 billion in 2024, down from R$3.4 billion in 2023 and R$5.1 billion in 2022 [701]. - Total long-term debt, including loans, financing, leases, and debentures, is R$12,728.5 million as of December 31, 2024 [693]. - Total contractual obligations as of December 31, 2024, amount to R$21,573.3 million, with R$6,480.0 million due in less than 1 year [690]. Capital Expenditures and Investments - Capital expenditures for the year ended December 31, 2024, totaled R$9.2 billion, primarily for network expansion [698]. - Investments in research and development for 2024 were R$25.8 million, a decrease from R$57.9 million in 2023 [713]. - The company expects to meet 2025 capital requirements primarily from cash generated from operations [702]. Brand and Market Position - The "Vivo" brand was valued at R$3 billion in 2024, ranking tenth among the most valuable brands in Brazil [716]. Strategic Focus and Innovation - The company is focusing on expanding its product offerings in health care, fintech, and connected home services [712]. - Vivo plans to invest in digital services and innovative value propositions across various sectors, including education, healthcare, and smart homes, to enhance customer relationships and increase revenue per user [720]. - In the B2B segment, digitization efforts are prioritized, driving demand for connectivity services and creating opportunities in Cloud, Cybersecurity, IoT, and Big Data, with Vivo launching the Open Gateway initiative [721]. - Customer experience differentiation will be enhanced through generative AI, with Vivo committed to providing engaging experiences via the Vivo App [722]. - Vivo aims to become a Net Zero company by 2035, five years ahead of schedule, aligning with the United Nations' Sustainable Development Goals and fostering innovation in a diverse environment [724]. - The company's strategic pillars focus on Growth, Profitability, and Sustainability, guided by Telefonica Group's key drivers to advance digitalization [725]. Market Trends - The demand for ultra-broadband connectivity is expected to increase, particularly driven by fiber in small cities, amidst a more mature fiber market leading to increased competitiveness and potential consolidation [718]. - Brazil's main operators have launched 5G in all state capitals and major cities, achieving 5G coverage for half of Brazil's population, with Vivo focusing on expanding its 5G coverage and ensuring 4G and 4.5G availability [719]. Accounting Estimates - Critical accounting estimates are reviewed annually, impacting the financial statements based on management's judgment and expectations of future events [726]. - Significant estimates and judgments in financial statement preparation include trade accounts receivable, income taxes, and intangible assets [727].