Financial Data and Key Metrics Changes - The new Oi's revenues grew by 10% year-over-year, with core revenues representing 70% of total revenues [9][29] - Consolidated revenues reached R$ 2.7 billion, with a decline in legacy revenue of R$ 900 million, a decrease of 28% year-over-year [27] - A significant reduction in gross financial debt was achieved, with a 60% reduction since the start of judicial recovery and a 35% reduction since Q1 2022 [13] Business Line Data and Key Metrics Changes - Oi Fibra, the core component for future growth, now represents close to 43% of revenues, with FTTH accesses growing by 36% year-over-year and homes connected increasing by 21% year-over-year [15][16] - Oi Solutions, representing about 30% of revenues, grew by 40% year-over-year, with ICT sales accelerating by 55% year-over-year [17][39] - Legacy services account for 19% of revenues and are in decline, but the company is addressing challenges through regulatory engagement [21][22] Market Data and Key Metrics Changes - Oi has achieved a market share of over 60% in the broadband consumer market, leading in 11 states and being the second-largest in most others [36][37] - The fiber revenue reached over R$ 4 billion in annualized revenue, demonstrating sustained growth above 30% [31] Company Strategy and Development Direction - The company is transitioning to a new operational model focused on fiber and ICT services, aiming to streamline operations and reduce costs [5][7] - A proposed reverse stock split of 50:1 is intended to improve liquidity and align share prices with market practices [75][78] - Oi is investing in digital platforms and new revenue areas, including Oi Energy and Oi Place marketplace [42][45] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by legacy operations but expresses confidence in the growth potential of the new Oi [85][89] - The company expects EBITDA margins to improve significantly in the long term, targeting over 20% as legacy impacts are minimized [96][100] Other Important Information - The company is engaged in disputes regarding mobile sale price adjustments, with ongoing arbitration processes [62][66] - Oi has hired Moelis & Company to optimize its capital structure and assist in discussions with creditors [60] Q&A Session Summary Question: What should be expected for EBITDA margins going forward? - Management indicated that while there was a reduction in EBITDA margins due to the transition to a new model, they expect margins to improve to 14% in 2024 and over 20% in the long term [92][96] Question: Can you provide details on the mobile sale disputes? - Management highlighted that the buyers' claims included material errors and that Oi has strong grounds to dispute these claims, with intentions to resolve them amicably or through arbitration if necessary [93][102] Question: What is the outlook for legacy operating free cash flow losses? - Management noted that legacy cash flow losses could be higher than the estimated R$ 100 million due to fixed costs associated with legacy operations [108][114] Question: What is the expected CapEx for 2023? - Management confirmed that CapEx is expected to be around R$ 1.2 billion for 2023, with plans to reduce it further in the long term [109][115] Question: Where is V.tal being booked in the financials? - Management clarified that V.tal's financials are not consolidated but represent a significant value stake for the company [110]
Oi(OIBZQ) - 2022 Q3 - Earnings Call Transcript