Telefônica Brasil reported strong operating performance for the first quarter of 2025, with net operating revenue expanding by 6.2% year-over-year to R$14,390 million. This growth was driven by robust performances in postpaid mobile and fiber revenues, which increased by 10.3% and 10.6% year-over-year, respectively. The postpaid customer base grew by 7.7% year-over-year, reaching 67.4 million accesses, supported by migrations and new customer acquisitions.
Fixed revenue increased by 6.2% year-over-year, primarily due to strong growth in Fiber-to-the-Home (FTTH) and Corporate Data, ICT, and Digital Services revenues, which rose by 10.6% and 15.8% respectively. The FTTH network expanded to 29.6 million homes passed, a 10.5% year-over-year increase, with 7.2 million homes connected, up 12.9% year-over-year. Mobile ARPU, excluding M2M and dongles, increased by 2.0% year-over-year to R$52.2, benefiting from annual price adjustments.
EBITDA grew by 8.1% year-over-year to R$5,704 million, with the EBITDA margin increasing by 0.7 percentage points to 39.6%. Net income attributed to Telefônica Brasil reached R$1,058 million, an increase of 18.1% year-over-year, with EPS growing by 20.3% to R$0.65. Capital expenditure (CapEx) for the quarter decreased by 0.3% year-over-year to R$1,869 million, representing 13.0% of revenues, a reduction of 0.9 percentage points year-over-year, reflecting continued capital intensity optimization. The 5G network now covers 519 cities, reaching 62% of the Brazilian population.
The company continued its commitment to shareholder remuneration, with R$2,576 million paid to shareholders by the end of April 2025. An additional R$2,000 million related to a second capital reduction event is scheduled for payment on July 15, 2025. Furthermore, Telefônica Brasil deliberated an additional R$500 million in interest on equity, bringing the total declared to R$1,120 million up to May 2025, reaffirming its guidance to distribute at least 100% of net income for 2024 to 2026.
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