Financial Data and Key Metrics Changes - The company reported a significant improvement in cash position, ending Q1 2020 with BRL 6.3 billion compared to BRL 2.3 billion at the end of the previous year, driven by a bridge loan and the sale of Unitel [46] - Overall residential revenue declined by 12%, primarily due to a 27% drop in copper revenue and a 23% decline in copper broadband revenue, while fiber revenues surged by 700% [22][23][24] - Operating expenses (OpEx) decreased by 7% year-over-year, contributing to an EBITDA margin approaching 32% [39] Business Line Data and Key Metrics Changes - Fiber business achieved a milestone of 1 million FTTH customers, with a target of 1.6 to 1.8 million homes connected by year-end [6][12] - Postpaid revenues grew by 12% annually, with a 20.6% increase in the postpaid customer base [7][26] - B2B IT corporate revenues increased by nearly 40%, while overall B2B revenues declined by 10% due to a drop in voice consumption [30] Market Data and Key Metrics Changes - The company maintained a strong market performance in the postpaid segment, gaining 2 percentage points in market share despite a competitive environment [27] - The prepaid market faced challenges, but the company managed to maintain and slightly increase its market share [28] - Wholesale revenues grew by approximately 7%, marking a return to growth in this segment [32] Company Strategy and Development Direction - The company is focused on long-term sustainability through a strategic transformation plan that emphasizes fiber deployment and operational efficiency [5][10] - A significant shift in CapEx allocation was noted, with 60% directed towards fiber deployment and only 15% towards copper maintenance [42] - The company aims to separate its infrastructure and service operations to enhance focus and efficiency, drawing on successful examples from other countries [112][113] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of the COVID-19 pandemic on operations, particularly in the prepaid segment, but noted resilience in fiber performance [64][66] - The company is optimistic about the recovery of collections and expects to stabilize B2B revenues as the situation normalizes [63] - Future plans include a focus on expanding fiber infrastructure and enhancing customer experience through digital initiatives [100][104] Other Important Information - The company has implemented measures to protect employees during the pandemic, including remote work policies and health monitoring [49][50] - A strategic plan amendment was filed to prepare for a general creditors meeting, aiming for long-term sustainability [69] Q&A Session Summary Question: What are the impacts of the pandemic on the business? - The pandemic affected prepaid top-ups significantly, but there was a recovery observed in late April due to government relief funds [58][60] - Fiber continued to show strong results, with record sales and reduced churn during the crisis [64][66] Question: How is the company managing its cash position? - The company ended Q1 with a cash position of BRL 6.3 billion, bolstered by a bridge loan and asset sales [46] Question: What is the strategy for the fiber business moving forward? - The company aims to connect close to 2 million homes by the end of 2020 and continues to see strong demand for its fiber offerings [12][86]
Oi(OIBZQ) - 2020 Q1 - Earnings Call Transcript