3Q25 Results: Telefonica Brasil S.A.

Rhea-AI Summary

Telefónica Brasil (NYSE:VIV) reported 3Q25 results with continued revenue and profitability expansion.

Key figures: Net operating revenue R$14,949m (+6.5% YoY); EBITDA R$6,486m (+9.0% YoY) with 43.4% margin (+1.0 p.p.); Net income R$1,888m (+13.3% YoY); EPS R$0.59 (+15.6% YoY). FTTH revenue +10.6% YoY; FTTH homes passed 30.5m and connected 7.6m (+12.7% YoY). Capex ex-IFRS16 R$2,603m (+4.3% YoY) representing 17.4% of revenue. 5G now in 683 cities (covering 66.7% of population). Shareholder remuneration totaled R$5,676m through October 2025, with commitment to distribute at least 100% of net income for 2024–2026.

Positive

• Net revenue +6.5% YoY to R$14,949m
• Net income +13.3% YoY to R$1,888m
• Corporate Data, ICT & Digital revenue +22.8% YoY
• FTTH revenue +10.6% YoY; 7.6m homes connected (+12.7% YoY)
• 5G coverage in 683 cities, covering 66.7% of population

Negative

• None.

Insights

Coverage Analyst

Solid quarter: revenue, EBITDA and net income all rose, cash flow improved, and shareholder distributions were sizeable.

Revenue grew 6.5% year‑over‑year to R$14,949 in 3Q25, supported by mobile postpaid and fixed services; mobile ARPU reached R$31.5 (+3.9%) and FTTH revenue grew 10.6%. EBITDA increased 9.0% to R$6,486 and EBITDA margin expanded to 43.4%, while EBITDA AL rose 9.2% to R$5,134.

Operating cash flow improved 12.4% to R$3,883, and free cash flow remained positive at R$1,762. CAPEX ex‑IFRS16 was R$2,603 (17.4% of revenue), mainly for 5G and fiber; FTTH homes passed reached 30.5 million and connected households grew 12.7%. The company paid R$5,676 to shareholders year‑to‑date and reiterated a commitment to distribute at least 100% of net income between 2024 and 2026.

Key dependencies and near‑term items to watch include quarterly execution of network rollouts (5G in 683 cities, covering 66.7% of population), CAPEX levels relative to revenue, and continuation of high payout actions through 2026. Given the explicit figures, the results present a clear operational improvement this quarter, with higher margins, stronger cash generation, and significant shareholder distributions, all explicitly stated in the release.

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

FAQ

What were Telefónica Brasil (VIV) net revenues and YoY growth in 3Q25?

Net operating revenue was R$14,949m, up 6.5% YoY in 3Q25.

How much did Telefónica Brasil (VIV) report for net income and EPS in 3Q25?

Net income was R$1,888m (+13.3% YoY) and EPS was R$0.59 in 3Q25.

What were Telefónica Brasil's (VIV) EBITDA and margin for 3Q25?

EBITDA totaled R$6,486m (+9.0% YoY) with an EBITDA margin of 43.4% (+1.0 p.p. YoY).

How large were Telefónica Brasil's (VIV) FTTH metrics in 3Q25?

FTTH revenue grew 10.6% YoY; homes passed reached 30.5m and homes connected were 7.6m (+12.7% YoY).

What was Telefónica Brasil's (VIV) capex level and capex-to-revenue in 3Q25?

Capex ex-IFRS16 was R$2,603m (+4.3% YoY), equal to 17.4% of revenue in 3Q25.

How much shareholder remuneration did Telefónica Brasil (VIV) distribute by October 2025?

Total remuneration paid to shareholders was R$5,676m through the end of October 2025.

What is Telefónica Brasil's (VIV) guidance on profit distribution for 2024–2026?

The company reaffirmed a commitment to distribute at least 100% of net income for each fiscal year between 2024 and 2026.