Alares records significant increase in EBITDA, to R$83 million in the third quarter

This is a machine translation of Alares' press release

São Paulo, November 2024 - Alares, a telecommunications operator that offers internet services via fiber optics, pay TV, streaming and fixed telephony based in São Paulo (SP), announced the consolidated results for the third quarter of 2024 (3Q24).

“This quarter, we had significant growth in EBITDA and net revenue resulting from our ability to quickly integrate operations of acquired companies into the Alares operation, added to the constant focus on operational efficiency and improving the customer experience.”, states Denis Ferreira, CEO from Alares.

EBITDA and net revenue

Between July and September 2024, Alares achieved EBITDA of R$83 million – growth of 50.1% compared to 3Q23. This represented an EBITDA margin of 46.1% – an increase of five percentage points also in relation to the same period of the previous year. This significant margin expansion is due to the continuous capture of synergies related to the Webby acquisition, greater operational leverage (organic and inorganic growth), in addition to the implementation of efficiency projects in the company.

Net revenue was also a highlight, totaling R$180 million and registering an increase of 33.7% versus 3Q23, driven by the growth of the customer base and the increase in the base's ARPU.

Customer experience

In the quarter, average churn was the lowest in the company's history, with a reduction of 0.27 percentage points compared to the same period of the previous year. “This performance is related to Alares’ ability to deliver high quality services to its users and the discipline in capturing new customers. The improvement reflects the results of actions such as the refinement of credit, anti-fraud and registration models, as well as investments in infrastructure”, highlights Ferreira.

As a reflection of this performance, the company was also awarded three customer-focused awards: the silver trophy in the 30th edition of the ABEMD award for the case “Performance 360 – Empowering Teams through Management and Engagement”; two statuettes at the ABT 2024 Awards, in the “Collection Operations” and “Social Media Service” categories; and as the brand most remembered by people from Natal in the “Internet Provider” section of the 22nd Top Natal.

Network expansion and reach

In 3Q24, Alares recorded a 25.3% growth in the subscriber base compared to 3Q23, reaching a total of 641 thousand end users. Furthermore, 602 thousand homes passed were added, demonstrating the capillarity of the Alares network and its capacity for expansion.

Enhanced portfolio

With a constantly evolving portfolio, Alares brought new digital services to customers, such as PlayKids, Zen App, and a differentiated gaming broadband offer with 1 Giga of internet, Exitlag latency reduction service and Super Wi-Fi 6.

M&As

In October 2024, the company concluded the purchase of Azza , a strategic milestone that adds 136 thousand new customers to its base and positions the company as the 4th largest ISP in the State of São Paulo, according to data from Anatel.

The integration of this operation is a priority and will be carried out quickly and with significant capture of synergies.

About Alares

Alares is an independent telecommunications operator, based in São Paulo (SP), which provides high-speed Internet access services via fiber optics, as well as pay TV, fixed telephony, data, as well as various digital solutions for people and companies.

It brings together approximately 2,700 employees and operates in 228 cities in seven Brazilian states – São Paulo, Minas Gerais, Paraná, Rio Grande do Norte, Ceará, Paraíba and Bahia. It has a network of 32 thousand km of high-quality optical fiber, with coverage to connect more than 3.3 million homes and businesses, currently serving around 777 thousand customers (Alares and Azza operations combined).

In addition to telephone service and digital channels, it has 126 physical stores and its own customer service teams and field technicians, which reinforce the commitment to quality and proximity to consumers.