Telefonica Brasil SA Q1 FY2025 earnings call

• Growth in operations and finances: Postpaid, fiber, total revenues, EBITDA, operating cash flow, and net income all showed positive growth. - Mobile strategy: Successful up-selling from prepaid to hybrid/postpaid, 5G adoption, low postpaid churn, and increasing ARPU. - Fiber operations: Vivo Total customers growing, new plans with OTT partnerships, homes passed expansion, and low churn. - B2C and B2B new businesses: Strong growth in digital services and B2B, with Cloud segment seeing a 38% YOY increase. - ESG highlights: Recognition in various sustainability indices, Futuro Vivo platform, Raízes Vivas campaign, and diversity initiatives. - Cost and CapEx: Costs growing less than inflation, EBITDA margin expansion, CapEx efficiency in mobile 5G and fiber home connections. - Shareholder remuneration: Already paid BRL2.6 billion, committed to distributing at least 100% of net income, and improved stock liquidity. - Fixed voice migration: Transition from concession to authorization regime, expected BRL3 billion from copper sale and BRL1.5 billion from real estate sale, with cost efficiency savings.

Vivo's first quarter 2025 showed strong financial performance across segments. Postpaid service had over 67 million customers with a 7.7% yearly growth. Fiber saw a 12.9% customer base increase with double-digit growth. Total revenues rose 6.2%, with mobile service revenue growing 6.5% and fixed revenues expanding by 6.2%. Postpaid and fiber revenues together make up 73% of service revenues, both growing above 10%. Mobile access reached BRL102.4 million, with hybrid plus pure postpaid access growing 7.6% to over 48 million customers and 5G access doubling since March 2024. Fiber operations had Vivo Total customers growing 77.4% YOY, FTTH homes passed almost 30 million. B2C new businesses: 57.2 million digital customers generated over BRL43 billion in revenues last 12 months, with new businesses segment growing 18.6% YOY to BRL1.7 billion (3% of total revenues). B2B performance had double-digit growth, with BRL12.3 billion in revenues, B2B representing 22% of business, and digital B2B segment growing 25.5% YOY.

• Minimum 100% distribution of net income to shareholders. - Sale of copper and real estate to gradually resume, providing positive support to other revenue lines. - Continued focus on CapEx efficiency and strategic investments for financial health.

• Macroeconomic and industry factors could cause results to differ from forward-looking statements. - Potential impact of concession to authorization migration on margins or CapEx, though management expects positive impact. - Competition in mobile and other segments could affect performance.

Q: Bernardo Guttman on sustainability of margins and prepaid performance A: Christian Gebara on prepaid migration to postpaid, digitalization driving margin growth Q: Marcelo Santos on back book price increases and M&A stance A: Christian Gebara on price adjustments in postpaid, hybrid, fiber, and M&A focus on consolidation Q: Gustavo Farias on concession migration impact and cash flow dynamics A: Christian Gebara and David Melcon on positive impact of migration, working capital and lease dynamics Q: Lucca Brendim on prepaid future and broadband pricing A: Christian Gebara on prepaid migration strategy, broadband pricing and convergence Q: Vitor Tomita on migration reception and fiber growth A: Christian Gebara on successful migration pilot, fiber expansion plans Q: Phani Kanumuri on mobile competition and cash usage A: Christian Gebara on mobile competition and shareholder remuneration plans