Alloha Fibra reports net profit of R$45.4 million in the first nine months of the year

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

São Paulo, November 14, 2024 – Alloha Fibra, the fourth largest company in Brazil in terms of subscribers and fiber optic extension and the main independent player in the sector, continues its growth journey with solid results in 3Q24.

The operator recorded net profit for the third consecutive quarter. In 3Q24, net profit was R$27.6 million, reversing a loss of R$22 million compared to 3Q23.

In the first nine months of the year, accumulated net profit was R$45.4 million, an increase of over 272% compared to the same period in 2023.

Net operating revenue in the quarter was R$424.7 million, an increase of 4.4% compared to 3Q23. From January to September, accumulated revenue reached R$1.26 billion, an increase of 4.4% compared to the same period last year.

EBITDA in 3Q24 totaled R$199.7 million, representing R$585 million year-to-date, an increase of 12% compared to the R$521.9 million recorded in 2023.

The accumulated EBITDA margin in 2024 reached 47%, an increase of four percentage points compared to 2023, driven by operational and financial synergies resulting from the integration process.

“The growth we have seen this quarter reflects the strength of our team, our management and the ability to adapt that we have demonstrated throughout the year. We remain focused on our financial discipline and the pursuit of better quality of service, efficiency, productivity and, above all, the strengthening of our company in the Brazilian market in this final stretch of the year”, highlights CEO Lorival Luz.

In terms of funding, in August, the National Bank for Economic and Social Development (BNDES) approved financing of R$148 million, which will be used to expand the availability of fiber optic services in 18 municipalities in Maranhão and 9 in Pará. To confirm the company's credibility in the market, in October, the contracting of a second line of credit with BNDES was approved, in the amount of R$192 million.

Originating from the Telecommunications Services Universalization Fund (FUST), this new credit line aims to expand fixed broadband coverage in 81 municipalities, benefiting more than 300,000 people. In this way, the company will be able to operate in 22 more cities in Maranhão, 12 cities in Pará, 16 in Ceará, 10 in Piauí, 4 in Sergipe, 6 municipalities in Rio de Janeiro, 7 in Mato Grosso do Sul and 4 more in Paraná, expanding its operations in these states.

The third quarter of 2024 was also marked by initiatives focused on the sustainability agenda. The company joined the UN Global Compact – Rede Brasil, a voluntary membership initiative that is based on commitments made by participating companies to implement universal sustainability principles and take measures that support the achievement of the UN Sustainable Development Goals (SDGs). In partnership with Megatelecom, it also brought high-quality internet to 29 indigenous villages in Paraíba, positively impacting around 5,000 people in local communities, who are dedicated to agriculture, fishing and ecotourism.

Debentures

In line with its growth objectives, the public offering of the eighth issue of simple, non-convertible, unsecured debentures was completed today, in the amount of R$250 million, in accordance with Law 12,431. The issue is in a single series, with a 7-year term, amortizations in the 6th and 7th years, and a rate of NTNB + 1.65%, representing a reduction of 0.10 pp in relation to the debenture issued by the company itself in August. The transaction is supported by a priority project by the Ministry of Communications for the implementation of transport networks, access networks and telecommunications infrastructure.

Acquisition

With stable operational and financial performance, controlled debt and reinforced cash flow, Alloha resumed its acquisition strategy in the country. In October, Anatel's Competition Superintendence and CADE's General Superintendence approved the purchase of Maranhão-based operator Atex Telecom for R$73 million. The process was concluded last Monday, November 11.

“This transaction represents an important step for the company in the Brazilian market,” according to Lorival Luz. The acquisition will allow the expansion of operations in the state of Maranhão, adding a scalable and high-capacity infrastructure network, distributed across 31 cities and with the possibility of serving 393 thousand homes.

Based in the city of Imperatriz, Atex adds around 63 thousand customers to the B2C Giga Mais Fibra base, according to Anatel data, resuming the Company's inorganic expansion plan and reinforcing its commitment to delivering quality internet to the Northeast region of Brazil, connecting more and more people, ideas and businesses.

“We will carry out the integration in the coming months in a very careful manner, respecting everyone and providing full transparency to each step that will take place in this process,” emphasizes the CEO of Alloha. “We have an excellent team at Atex, which knows the market in that region. From now on, we will combine the best of each of us. This union will make us stronger and better prepared to advance in the fiber optic market in the country.”

About Alloha Fibra

Alloha Fibra is the fourth largest company in terms of subscribers and fiber optic extension in the country and the largest independent player in this segment. Operating throughout Brazil, it is present in 864 Brazilian cities in 22 states, bringing together 1.6 million B2B and B2C customers. The history 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.