Vivo (Telefónica) increases its profits by 15.9% until September

MADRID, 1 Nov.

Vivo (Telefónica) increases its profits by 15.9% until September


Vivo, Telefónica's mobile operator in Brazil, earned 3,500 million Brazilian reais (659 million euros) until September, which is 15.9% more compared to the same period in 2022, as reported by the company.

In the quarter alone it obtained a net profit of 1,500 million Brazilian reais (282.3 million euros), 2.2% more.

Net income grew above inflation, to 13,100 million reais (2,465 million euros), 7.5% more than in the third quarter of the previous year. Until September, the company registered 38,600 million reais (7,322 million euros), 9% more.

Mobile revenues totaled 9,300 million reais (1,751 million euros), 9.4% more, driven by contract revenues, which in the quarter were close to 7,000 million reais (1,317 million euros), 12.4% more. 7% more.

The sale of 5G-compatible mobile phones, which already represent 82% of all smartphones sold in stores, and the range of electronic products contributed to a 13.5% increase in terminal revenue, up to 814 million reais (153 million) in the quarter.

Fixed income totaled 3.8 billion reais (715 million euros), with an annual increase of 3.1%. If key fixed revenues are isolated, an indicator composed of fiber technologies and corporate services, Vivo's growth rises to 10.1%, with revenues of 3.1 billion reais (583 million euros).

The company highlights the performance of FTTH revenues, a technology that brings fiber to the customer's home, which reached 1,600 million reais (301 million euros) in the quarter, with an increase of 15.1%. Vivo's fiber network reaches 25.1 million homes in 439 municipalities, with six million homes and businesses already connected.

Ebitda for the third quarter was 5,500 million reais (1,035 million euros), with an increase of 11.7% and a margin of 42.2%.

On the other hand, the customer base is close to 112 million accesses, of which 98 million are mobile customers.

In the third quarter, Vivo invested around 2.6 billion reais (489 million euros) in strengthening its mobile network, focusing on the activation of 5G and the expansion of the fiber network. The accumulated investment as of September 2023 stood at 6,700 million reais (1,261 million euros).

Until October, remuneration to shareholders totaled 2.9 billion reais (545 million euros), of which 1.7 billion reais (320 million euros) in interest on equity capital, 827 million in dividends (155 million euros) and 308 million (57.9 million euros) in share repurchases.

In the last 12 months, the gross value per share declared was 2.58 reais, which represents a dividend yield of 6.6% for the year.