Alloha Fibra reports best financial result in its history and net profits in 1Q24

This is a machine translation of Alloha Fibra's press release

São Paulo, May 2024 - The Alloha Fibra Group, the largest independent fiber optic provider in Brazil and the third largest Telecom operator in terms of fiber network extension, presented a net profit of R$ 8.4 million in 1Q24, reversing a loss of R$8.7 million in 1Q23. EBITDA reached R$197 million, growth of 17% compared to the same period in 2023 and 24% above 4Q23, with a margin of 48%, the highest in the historical series. Another highlight was net revenue, which totaled R$411 million, an increase of 3% compared to 1Q23. This is the Company's best result since its creation in 2018 and reflects the efficiency and excellence in the execution of its business plan, prioritizing the operational and financial synergies that began in August last year.

In relation to operating results, the period also recorded positive performance and evolution compared to 1Q23 and 4Q23. Today, all operations are unified, the main functions are centralized and with two business units B2C and B2B under a single Giga Mais commercial brand. “We are moving towards a new level of results, transforming Alloha into a more solid company with consistent results, valuing our employees, respecting our principles and offering higher quality of service to our B2B and B2C customers”, highlights CEO Lorival Luz.

Alloha continues to be the largest company in number of customers among the Small Providers (PPP) of FTTH (Fiber to the Home) fiber optics in the country, according to the National Telecommunications Agency (Anatel), in addition to being the only internet provider on a national scale. Currently, it has around 1.6 million B2C customers, more than 4,900 B2B customers and the possibility of serving around 7.8 million homes in Brazil.

The first three months of the year were still marked by the final stretch for the completion of the entire process of migration and unification of the systems of the nine brands acquired in recent years. “Now we are integrated and ready for a new stage of growth and consolidation with significant gains in the integration of operations”, highlights Lorival Luz. “It was a challenging journey full of learning, led by our highly qualified IT team, who worked intense in the last eight months. With these changes, we have gained in agility and simplification of our operations, reducing the complexity of various processes and expanding our possibilities for growth in the national fixed broadband market”, adds the executive.

With the aim of boosting the company's level of corporate governance, an issuer registration request was filed with the Securities and Exchange Commission (CVM) in category "A”. The initiative reinforces Alloha's solid capital structure to sustain the growth of the company. business, in addition to high management standards, providing more transparency and credibility with investors and other stakeholders.

It is worth mentioning that in 1Q24 Alloha took an important step focused on its organizational culture by launching its new purpose and five principles, which are already guiding the attitudes of its approximately 5 thousand employees across the country, aiming to boost people's growth and delivering better results.

“We also continue executing our corporate simplification plan to optimize administrative and operational management, reducing costs and focusing on managing the portfolio of services offered to customers and agility in the businesses developed by the Group”, concludes Alloha CFO Fernando Stucchi.

About Alloha:

Alloha Fibra is the largest independent FTTH (Fiber to the Home) fiber optic group in Brazil, the third largest Telecom operator in fiber optic extension and the fourth largest in fixed broadband in terms of number of customers. Operating throughout the country, it is present in 864 Brazilian cities in 22 states, bringing together 1.6 million B2B and B2C customers. The story of Alloha Fibra began in 2018, as a promising project that became a complete connectivity ecosystem for people and companies. Today, with around 5 thousand employees, it operates under a single commercial brand: Giga+ Fibra, for the consumer market, and Giga+ Empresas aimed at the B2B market. The Company's purpose is to connect people, businesses and ideas, contributing to digital and social inclusion.