Oi(US:OIBRQ)2020-03-27 18:03Financial Data and Key Metrics Changes - The company closed 2019 with a CapEx of BRL 7.8 billion, a 29% increase compared to 2018, driven by strong fiber deployment [59] - EBITDA reached BRL 4.51 billion in 2019, with BRL 1 billion in the fourth quarter, aligning with the bottom of the guidance [72] - The net debt increased to BRL 52.9 billion during the quarter, influenced by natural movements in debt, interest accrual, and FX variation [67] Business Line Data and Key Metrics Changes - Fiber operations showed significant growth, with homes passed reaching 4.6 million by the end of 2019 and expectations to exceed 8 million by the end of 2020 [17] - FTTH revenue grew over 700% year-over-year, contributing to a total revenue of BRL 132 million in Q4 2019 [21][30] - Mobile revenues reversed the trend with a 15% increase, driven by robust postpaid performance, which saw a 23% growth in the customer base [34][36] Market Data and Key Metrics Changes - The company reported a 26% decline in copper gross revenues and a 21% decline in copper broadband revenue year-over-year [28] - DTH revenues also showed a decline of approximately 3.3% in Q4 2019 [29] - The FTTH segment now accounts for 7.2% of total residential net revenues, indicating a shift in revenue profile [26] Company Strategy and Development Direction - The strategic transformation plan focuses on four key pillars: funding, operations, efficiency, and strategic options [7] - The company is actively pursuing a judicial recovery extension to gain flexibility in its operations and financial planning [14] - A market sounding process has been initiated to assess the value of mobile operations and explore investment opportunities in fiber [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the COVID-19 pandemic but emphasized the importance of telecom services in overcoming these challenges [5][6] - The company is focused on maintaining business continuity and has established a crisis response team to address operational impacts [86] - There is confidence in the FTTH segment to offset declines in legacy revenues, with expectations for continued growth in 2020 [33][91] Other Important Information - The company plans to optimize CapEx further in 2020, targeting a total of BRL 7 billion, with a significant portion dedicated to fiber deployment [61] - The cash position improved significantly in early 2020, with pro forma cash expected to reach BRL 8 billion following the sale of Unitel and other transactions [66] - Operational efficiency initiatives have begun to yield cost savings, with expectations of annualized impacts between BRL 150 million and BRL 200 million [75] Q&A Session Summary Question: What is the current gross debt in U.S. dollar terms and the hedge for it? - The company has three parts of its debt denominated in U.S. dollars, including outstanding bonds and a bridge loan, with a natural hedge established for cash flows in 2020 [104][108] Question: Is there room to deliver a lower CapEx than BRL 7 billion? - The company anticipates maintaining the BRL 7 billion CapEx plan, with a focus on fiber deployment and regulatory obligations impacting copper-related CapEx [105][112]