Vero accelerates growth with record EBITDA and profit in Q3
This is a machine translation of Vero's press release
After raising R$900 million in debentures, announcing its entry into two Brazilian capitals and expanding mobile network services in the country, Vero records a new financial record. Among the main telecommunications operators in Brazil, the company closed the third quarter of this year with a record adjusted EBITDA of R$ 223.5 million, an increase of 11.4% compared to the previous quarter and 8.9% taking into account the same period in 2023. The EBITDA margin also broke a historic record, reaching 53.9% and growth of 3.4 pp compared to the third quarter of last year.
In the months of July, August and September, net revenue reached R$414.3 million, an increase of 2.1% compared to the previous year. Net profit also increased, reaching R$ 8.3 million, reversing the net loss recorded in the same quarter last year (R$ - 6.8 million), which reinforces the company's financial sustainability.
The results reinforce the company's solidity, marked by accelerated growth, driven by the efficiency of operational management and the capture of synergies from the merger with Americanet, which was approximately 200% above planned. Cash generation, once again, highlights Vero's performance in the sector, reflecting responsible management and commitment to delivering value to shareholders and stakeholders. In the last 12 months, the company recorded adjusted EBITDA minus Capex, a cash generation metric, of R$434 million, growth of 58.2% compared to the previous year.
"Vero has been demonstrating consistent results and, once again, exceptional operational performance. We had the best result of the year, both in the quarter and in the last 12 months, which proves that we are accelerating our growth consistently and with focus on quality, with continuous improvement in profitability", says Fabiano Ferreira, CEO of the company.
The significant increase in the number of new customers ( Net Adds ), which jumped 412.3% compared to 3Q23, is one of the main indicators of this progress. The result is the result of the combination between the increase in sales volume and the reduction in churn , which reached its lowest historical level in September, at 1.75%. Another important factor was the 1.3% increase in the company's ARPU, which ended the period at R$109.90, consolidated as the best in the sector.
"The expansion to capital cities through the neutral network was one of the reasons behind our growth, but not the only one. We expanded our mobile network to new cities, making our portfolio even more complete and attractive. We believe that, in addition to the success of the integration process, the combination of organic growth in current cities, launch of new cities, new businesses and improvement of the customer journey is what generates such significant results", adds Ferreira.
Raising R$900 million in debentures
In October, Vero announced the raising of R$900 million in debentures. The amount will be invested in expanding the network infrastructure in the 420 cities where the company is present, in addition to the possibility of launching in new municipalities in the coming years. Part of the amount raised will be used to extend the debt and the remainder will be used to continue driving business growth. With the move, the company should lengthen the average term of its debt from 4.1 years to 4.9 years.
“The diversification of our growth strategy, based on four distinct paths, combined with Vero's well-known financial discipline, has proven to be an excellent combination and generated consistent results, bringing positive prospects for the coming months. We will continue investing in organic and inorganic growth, new cities, new products and innovations that reinforce our portfolio, firm in our purpose of revolutionizing the customer experience”, concludes the executive.
About Vero
Vero is a telecommunications company that serves the residential (B2C) and corporate (B2B) market with voice, data, broadband, mobile data, digital services, SAAS (Software as a Service) and HAAS (Hardware as a Service) products. Service), among others. With a presence in 9 states plus the Federal District and more than 425 cities, the company brings the culture of customer focus to 1.36 million subscribers in the South, Southeast and Center-West of the country, connecting 4.5 million users per through a robust and high-performance infrastructure with 77 thousand km of network, 23.7 thousand km of backbone and 54.3 thousand km of FTTx.
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