Financial Data and Key Metrics Changes - The company reported a significant reduction in net debt, reaching R$ 16 billion, representing a 60% decrease in gross financial debt since the beginning of judicial reorganization [59][60]. - Routine operating expenses (OpEx) decreased by over 23% year-over-year, with a real gain of about 35% after adjusting for inflation [50][53]. - EBITDA margin for the quarter was approximately 14%, reflecting the transition to a new business model [15]. Business Line Data and Key Metrics Changes - Core revenues showed a slight increase of 1% year-over-year, with the new Oi core revenues growing over 32% [13][19]. - Fiber revenues grew almost 40% year-over-year, with a notable increase in net adds towards the end of the quarter [21][22]. - Oi Solucoes core revenues increased by 4.5% year-over-year, driven by strong ICT growth, which saw over 30% growth [34][35]. Market Data and Key Metrics Changes - The company's market share in FTTH increased from 30% in Q2 last year to 34% in Q2 this year [26]. - Average Revenue Per User (ARPU) reached close to R$ 90, supported by upselling broadband speeds [24]. - The competitive environment for fiber services remains challenging, but the company is gaining market share in areas where it operates [25]. Company Strategy and Development Direction - The company is focused on executing its transformation plan, with a strong emphasis on core business operations and reducing legacy costs [4][5]. - There is an ongoing strategy to extract value from all possible assets, including the divestment of DTH and the sale of fixed towers [41][42]. - The company aims to evolve into a customer-centric service provider, enhancing customer experience and operational efficiency [29][30]. Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of regulatory developments, particularly regarding migration and arbitration, which are critical for the sustainability of the legacy business [62][66]. - The company expects to see positive impacts from regulatory changes in the next 18 to 24 months [11][62]. - Management acknowledged the challenges posed by legacy operations but remains optimistic about the growth potential of the new Oi core [36][72]. Other Important Information - The company has completed significant asset sales, contributing approximately R$ 5 billion to cash flow during Q2 [55]. - The transition to a new business model is expected to stabilize in the coming quarters, with a focus on operational metrics [17][71]. - The company has launched several ESG initiatives, including environmental management systems and social programs aimed at improving workplace diversity [67][70]. Q&A Session Summary Question: Disclosure of R$ 388 million EBITDA and leaseback agreement details - Management confirmed that the disclosed EBITDA includes partial costs related to V.tal and that details on leaseback costs will be available after the competitive process concludes [80][81]. Question: Cash work from working capital and short-term EBITDA margins - Management explained that cash consumption was impacted by aligning payments post-M&A and indicated that guidance on margins will be provided during the upcoming Investor Day [87][88]. Question: Future acquisitions of small FTTH providers - Management acknowledged the potential for acquiring small FTTH providers but emphasized that organic growth remains the primary focus [92][93]. Question: Reflection of recent renegotiation numbers in the balance sheet - Management confirmed that the recent renegotiation numbers are included in the balance sheet [95].
Oi(OIBZQ) - 2022 Q2 - Earnings Call Transcript