Sao Paulo, Brazil--(Newsfile Corp. - October 30, 2025) - Telefônica Brasil (B3: VIVT3) (NYSE: VIV) announces its results for 3Q25.
Consistent growth supported by strong Revenue, EBITDA and Net Income increase.
| R$ million | 3Q25 | 3Q24 | % Y-o-Y | 9M25 | 9M24 | % Y-o-Y | ||||||||||||
| Net Operating Revenue | 14,949 | 14,039 | 6.5 | 43,984 | 41,264 | 6.6 | ||||||||||||
| Mobile Services | 9,715 | 9,212 | 5.5 | 28,542 | 26,821 | 6.4 | ||||||||||||
| FTTH | 1,980 | 1,790 | 10.6 | 5,819 | 5,264 | 10.5 | ||||||||||||
| Corporate Data, ICT and Digital Services | 1,386 | 1,129 | 22.8 | 4,059 | 3,389 | 19.8 | ||||||||||||
| Handsets and Electronics | 879 | 856 | 2.8 | 2,608 | 2,553 | 2.2 | ||||||||||||
| Other Revenues¹ | 989 | 1,053 | (6.0 | ) | 2,957 | 3,236 | (8.6 | ) | ||||||||||
| Total Costs | (8,463 | ) | (8,089 | ) | 4.6 | (25,862 | ) | (24,582 | ) | 5.2 | ||||||||
| EBITDA | 6,486 | 5,950 | 9.0 | 18,123 | 16,682 | 8.6 | ||||||||||||
| EBITDA Margin | 43.4% | 42.4% | 1.0 p.p. | 41.2% | 40.4% | 0.8 p.p. | ||||||||||||
| EBITDA AL² | 5,134 | 4,702 | 9.2 | 14,118 | 12,965 | 8.9 | ||||||||||||
| EBITDA AL² Margin | 34.3% | 33.5% | 0.9 p.p. | 32.1% | 31.4% | 0.7 p.p. | ||||||||||||
| Net Income³ | 1,888 | 1,667 | 13.3 | 4,291 | 3,785 | 13.4 | ||||||||||||
| Earnings per Share (EPS)4 | 0.59 | 0.51 | 15.6 | 1.33 | 1.15 | 15.6 | ||||||||||||
| CAPEX ex-IFRS 165 | 2,603 | 2,495 | 4.3 | 6,911 | 6,710 | 3.0 | ||||||||||||
| CAPEX ex-IFRS 165/Net Revenue | 17.4% | 17.8% | (0.4) p.p. | 15.7% | 16.3% | (0.5) p.p. | ||||||||||||
| Operating Cash Flow (OpCF)6 | 3,883 | 3,455 | 12.4 | 11,212 | 9,972 | 12.4 | ||||||||||||
| OpCF6 Margin | 26.0% | 24.6% | 1.4 p.p. | 25.5% | 24.2% | 1.3 p.p. | ||||||||||||
| Operating Cash Flow AL (OpCF AL)7 | 2,531 | 2,207 | 14.7 | 7,207 | 6,255 | 15.2 | ||||||||||||
| OpCF AL7 Margin | 16.9% | 15.7% | 1.2 p.p. | 16.4% | 15.2% | 1.2 p.p. | ||||||||||||
| Free Cash Flow | 1,762 | 1,671 | 5.5 | 6,866 | 7,139 | (3.8 | ) | |||||||||||
| Total Subscribers (Thousand) | 116,643 | 115,245 | 1.2 | 116,643 | 115,245 | 1.2 | ||||||||||||
| 1 - Other Revenues include Fixed Voice, xDSL, FTTC and IPTV. 2 - AL means After Leases. 3 - Net Income attributable to Telefônica Brasil. 4 - Earnings per Share (EPS) calculated based on net income attributable to Telefônica Brasil divided by the weighted average of outstanding shares in the period. EPS for 2024 was calculated considering the effects of the Split and Reverse Stock Split effective on April 15, 2025. 5 - Does not include amounts related to IFRS 16 effects and licenses. 6 - Operating Cash Flow is equivalent to EBITDA less Capex ex-IFRS 16 and licenses. 7 - AL Operating Cash Flow is equivalent to EBITDA After Leases less Capex ex-IFRS 16 and licenses. | ||||||||||||||||||
Net revenue grew +6.5% YoY, supported by the solid performance of mobile postpaid (+8.0% YoY) and fixed revenues (+9.6% YoY). Postpaid's performance is driven by its consistent customer base growth (+7.3% YoY), ending the quarter with 69.8 million accesses due to significant migrations and the acquisition of new customers. These factors, combined with annual price adjustments, contributed to a new record in mobile ARPU, which reached R$31.5, up +3.9% YoY in the quarter.
Fixed Revenues increased by +9.6% YoY increase, the highest growth in the Company's recent history, reflecting the consistent growth of FTTH (+10.6% YoY) and Corporate Data, ICT and Digital Services (+22.8% YoY) revenues. Our FTTH network reached 30.5 million homes passed (+7.6% YoY), with 7.6 million homes connected (+12.7% YoY).
EBITDA registered an increase of +9.0% YoY, the highest growth in the last two years, with a margin of 43.4%, up +1.0 p.p. YoY. EBITDA AL expanded +9.2% YoY, with a margin of 34.3%, up +0.9 p.p. YoY.
In 3Q25, Capex totaled R$2,603 million, a growth of +4.3% YoY, representing 17.4% of revenues, a decrease of -0.4 p.p. in the annual comparison. Investments were mainly directed to the strengthening of our 5G network, which is already present in 683 cities (+1.7x YoY), covering 66.7% of the Brazilian population, and expanding our fiber operation, accelerating connected households by +12.7% YoY.
Operating Cash Flow reached R$3,883 million, up +12.4% YoY, with a margin of 26.0% (+1.4 p.p. YoY) in relation to net revenue.
Net income for the period reached R$1,888 million, up +13.3% YoY.
The remuneration paid to shareholders totaled R$5,676 million by the end of October 2025. This quarter, on July 15, 2025, we paid R$2,000 million related to the second capital reduction event. This month, the Company deliberated an additional R$380 million in interest on equity, totaling R$2,680 million declared in the current fiscal year until October. Once again, we reaffirm our commitment to distribute, between 2024 and 2026, at least 100% of the net income for each fiscal year. In 2024, we met the guidance with a payout of 105.3%.
TELEFÔNICA BRASIL - Investor Relations
ir.br@telefonica.com
To download the complete version of the Company's earnings release, please visit our website: https://ri.telefonica.com.br/en
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/272672
