Financial Data and Key Metrics Changes - The company turned positive in net profit but experienced a year-over-year decline in EBITDA while showing a sequential increase [7] - Overall revenues had a small decline, but residential revenues increased by 3.5% year-over-year for the first time in many years [6][15] - Cash levels were managed effectively, reaching BRL3.4 billion by the end of the quarter [31] Business Line Data and Key Metrics Changes - Fiber revenues reached BRL691 million for the quarter, with an annualized revenue number close to BRL3 billion [13] - The total homes passed reached 12 million, with 1.5 million new homes passed in Q2 2021 [5] - Oi Solutions revenues remained stable sequentially but dropped from last year due to legacy declines, while SME revenues returned to growth [17] Market Data and Key Metrics Changes - Fiber now represents over 50% of residential revenues, compensating for a 35% decline in copper revenues [16] - The company achieved a record of over 500,000 homes passed per month, positioning itself well for long-term guidance [8] - The mobile segment showed positive indicators, with strong postpaid recovery despite being classified as discontinued operations [19] Company Strategy and Development Direction - The company is focusing on execution and transitioning to fiber as its core offering for future growth [4] - The launch of the V·tal brand marks a significant milestone in the company's transformation strategy [33] - Future revenue guidance anticipates 10% of revenues coming from new areas within 2 to 3 years, with expectations to reach BRL1.5 billion by 2024 [22][23] Management Comments on Operating Environment and Future Outlook - Management emphasized that 2021 is a transition year, with a focus on operational improvement and cost reduction [41] - The company is confident in achieving its transformation goals by the beginning of next year, having overcome previous challenges [42] - The competitive landscape for fiber deployment is expected to have minimal overlap, allowing for growth opportunities [50][51] Other Important Information - The company has established a new ESG Commission and aims to improve its MSCI ESG rating [39] - Employee engagement is high, with a satisfaction index close to 97%, indicating strong internal support for transformation initiatives [40] Q&A Session All Questions and Answers Question: Clarification on V·tal's CapEx - The BRL30 billion investment does not include past investments and is aimed at building infrastructure for over 32 million homes passed [45][47] Question: Competitive Environment in Fiber Deployment - There is some overlap in larger cities, but the company prioritizes areas without existing fiber builds, believing there is space for all players [50][51] Question: Demand for V·tal Services from Other Clients - Demand for V·tal services has started to pick up, with over 10 contracts signed with various ISPs [58][60] Question: Competitive Environment in Mobile Segment - The mobile market is competitive but not predatory, with a focus on maintaining strong postpaid performance while reformulating prepaid plans [63][64] Question: M&A for V·tal's Expansion - M&A could make sense for V·tal's infrastructure expansion, but it will be analyzed by the new controlling shareholder [67][68]
Oi(OIBZQ) - 2021 Q2 - Earnings Call Transcript