Investment Rating - The investment rating for Telefonica Brasil SA is Overweight [7][79]. Core Insights - The report outlines a strategy based on five pillars to enhance Free Cash Flow (FCF): 1) ARPU uplift, 2) Churn reduction, 3) Regulatory tailwinds, 4) Leasing cost optimization, and 5) Lower CAPEX intensity [3][4][5][6]. Summary by Sections Product Initiatives - Brazil's competitive landscape remains positive despite new entrants like NuCel, with price hikes expected to support revenue growth in Q2 2025. The focus is on high-quality convergent offers, which account for over 80% of fiber net additions. Management aims to increase ARPU and reduce broadband fiber churn from 1.5% to closer to 1% [4]. Cost Initiatives - Cost optimization is targeted through regulatory upgrades and leasing cost reductions. The transition from concession to authorization is expected to yield one-off benefits and recurring savings as legacy networks are phased out. Additionally, further reductions in tower leasing costs are anticipated due to market consolidation [5]. CAPEX Trends - The CAPEX/Revenue ratio is projected to decline as major investments for 5G and fiber-tower connections are completed. Future efforts will focus on increasing FTTH penetration and scaling network sharing agreements, which will help reduce CAPEX intensity [6]. Financial Projections - The report forecasts an improvement in FCF margins from 5% in 2024 to 16% in 2026, driven by successful execution of the outlined strategies. The current valuation is noted to be 18% below its 2021 average, indicating potential upside [7].

Company Overview - Vantiva is a global leader in connectivity technologies, formerly known as Technicolor, with over 130 years of experience in developing solutions that connect consumers to essential content and services [4][5] - The company specializes in high-speed connectivity, video, and IoT (Internet of Things) systems, transforming how individuals live, work, and interact [4] Financial Information - As of May 23, 2025, Vantiva has a total of 490,293,903 shares comprising its capital, with an equal number of theoretical and exercisable voting rights [3] Sustainability Commitment - Vantiva has received multiple gold and platinum medals from EcoVadis for its strong commitment to sustainability and responsible business practices, ranking among the top 2% of organizations in its sector globally [6] Global Presence - The company is headquartered in Paris and has regional offices in Australia, Brazil, China, India, South Korea, the United Kingdom, and the United States, catering to a diverse international clientele [7]