Financial Data and Key Metrics Changes - The company reported a net loss of over R$17 billion in Q4 2022, primarily due to a major accounting adjustment related to the impairment of legacy assets, with no cash impact [7][8] - Total revenues grew by 5.6% year-over-year, with fiber revenues increasing by 25.5% and B2B revenues by 3.5% [13][14] - Operating expenses (OpEx) decreased by 25% year-over-year, while capital expenditures (CapEx) saw a significant reduction of 73% [15][31] Business Line Data and Key Metrics Changes - The New Oi's core operating metrics showed solid results, with fiber revenues representing 46% of total revenues and growing at 26% year-over-year [20][21] - Legacy operations continued to decline, with a 30% drop in revenues, but this was offset by strong growth in fiber and B2B segments [21][22] - The company achieved a reduction in recurring personnel costs by 16.2% year-over-year, following a significant headcount reduction [30] Market Data and Key Metrics Changes - Oi maintained a market share of approximately 31% in cities where Oi Fibra operates, despite a competitive environment [23] - The average revenue per user (ARPU) for fiber services increased by 6%, contributing to the profitability of Oi Fibra [24] Company Strategy and Development Direction - The company is focused on transitioning to a new operating model, emphasizing fiber and B2B businesses while winding down legacy costs [11][12] - Oi is engaged in negotiations with Anatel regarding the migration from a concession to an authorization model, which is critical for future operations [9][80] - The judicial recovery plan aims to reduce indebtedness and ensure liquidity while addressing legacy business challenges [45][90] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant challenges ahead, including debt reduction, resolving legacy issues, and improving operational efficiency [88][90] - The company expects to see improvements in cash flow and operational performance as it continues to implement its recovery plan [95] Other Important Information - The company received recognition for its fiber service quality, ranking as the best fiber connection in Brazil according to customer preference scores [27] - Oi is committed to ESG goals, achieving significant milestones in recycling and employee development [84][86] Q&A Session Summary Question: What are the drivers behind the evolution of CapEx and ONT costs? - The company highlighted three main drivers: technological evolution leading to lower ONT prices, increased use of refurbished equipment, and improved installation techniques [98][100][104] Question: What are the main concerns of individual shareholders? - The company addressed various concerns raised by individual shareholders, focusing on transparency and communication regarding financial performance and strategic direction [107][108]
Oi(OIBZQ) - 2022 Q4 - Earnings Call Transcript