4Q24 Results: Telefônica Brasil S.A.

Core Viewpoint - Telefônica Brasil reported strong operating performance in Q4 2024, leading to significant growth in net income and free cash flow generation [2][3][4]. Financial Performance - Net Operating Revenue reached R$14,581 million in Q4 2024, a 7.7% increase from R$13,535 million in Q4 2023 [2]. - Net Income for 2024 was R$5,548 million, reflecting a 10.3% year-over-year growth [6]. - Earnings per Share (EPS) increased to R$3.38, up 11.3% from R$3.03 in 2023 [2]. Revenue Breakdown - Mobile Services revenue grew by 7.0% YoY to R$9,201 million, driven by a 9.1% increase in postpaid revenue [2][3]. - Fixed revenue increased by 8.0% YoY, with FTTH revenue rising by 12.4% and Corporate Data, ICT, and Digital Services by 21.1% [4]. - Total Subscribers reached 116,050 thousand, a 2.7% increase from the previous year [2]. Cost and Profitability - Total Costs amounted to R$8,383 million, a 7.7% increase YoY [2]. - EBITDA for Q4 2024 was R$6,199 million, with a margin of 42.5%, unchanged from Q4 2023 [2][4]. - Free Cash Flow surged by 82.4% YoY to R$1,080 million [2]. Capital Expenditure and Investments - CAPEX for 2024 totaled R$9,166 million, a 2.3% increase YoY, representing 16.4% of revenues [5]. - Investments focused on enhancing the 5G network, which now covers 61.3% of the Brazilian population [5]. Shareholder Remuneration - The company distributed R$5,845 million to shareholders in 2024, a 22.1% increase from R$4,786 million in 2023, achieving a payout ratio of 105.3% [6][7]. - Telefônica Brasil commits to distributing at least 100% of net income for the fiscal years 2025 and 2026 [7].