Telefonica Brasil reported an R$1,76 billion net profit (roughly $300 million) in Q4 2024.
In 2024, Telefonica Brasil will report a total net profit of R$5.55 billion (about $950 million). This represents a 10.3% rise.
The market expected a 10,1% rise in the quarter ending March.
The company continues to grow despite recent macroeconomic challenges.
The result met LSEG’s consensus estimate R$1.7billion.
Revenue surge across segments
All segments showed solid performance. The Business Adjusted EBITDA of Telefonica Brasil was R$ 4,8 billion. This represents an increase of 8.3% from the previous year.
In the third quarter of 2016, the company’s net operating revenues increased by 7.7% to R$14.6 Billion.
The growth in mobile, corporate digital and fiber broadband services was largely responsible for this.
The revenue from mobile services rose by 7.6%, reaching R$9.2billion. This was supported by an increase of 9.1% in the revenue generated through postpaid subscriptions, which grew to 66.5million subscribers, an expansion of 7.6%.
The postpaid service ARPU increased by R$52.1, despite the low rate of postpaid churn.
The fixed-line service revenue also increased significantly. FTTH revenues grew 12.4% on an annual basis as Telefonica Brasil extended its fiber network, which now reaches 29.1 millions homes (+11.2%), and 7 million of them are connected (+12.7%).
The company has been focusing on expanding its services.
Shareholder value is the commitment
Telefonica Brasil has reaffirmed their commitment to provide value to investors, stating that they intend to distribute for the fiscal years of 2025 and 2026 an amount equivalent to or higher than 100% each year.
Shareholders are expecting to receive R$4.45billion in 2025. This includes equity interests, capital reductions and share purchases.
The business has announced that it will be launching a new share-buyback program, which could involve up to 34.75 million shares.
The program will begin Wednesday, and run until the 25th of February 2026. It is expected to cost a maximum R$1.75billion.
The move can be seen as an effort to maximize the returns on existing investors’ investments.
Innovative financial strategies
In late January, Telefonica Brasil announced a reverse split of 40 to 1. This was followed by an 80-to-1 stock split.
The aim of this novel strategy is to increase the liquidity and value of the shares.
A shareholder meeting will take place on 13 March, which is crucial in determining future market perception and the structure of Telefonica Brasil shares.
The fourth quarter 2024 results of Telefonica Brasil show a strong financial state, as the company’s profits, revenue, and client base have all increased.
The company’s focus on returns to shareholders and the development of new financial strategies will help it adapt to Brazil’s rapidly changing telecoms industry.
The focus is on maintaining growth, increasing shareholder value and ensuring that the company has a competitive edge in the market as we approach 2025.
The post Telefonica Brasil’s Q4 profit rises 10% may be updated as new information becomes available
