Vero reports record net profit in Q2 2024

This is an automated translation of the original release published in Portuguese.

São Paulo, August 14, 2024 – In its second earnings release of the year, telecommunications company Vero reports a record adjusted net income of R$31 million in the second quarter of 2024. In the same period, the company recorded Adjusted EBITDA minus Capex, a metric for operating cash generation, of R$70 million. The same metric, in the first six months of the year, reached R$206 million, which currently represents 25% of the company's net revenue.

The results, which keep the company among the largest cash generators in the sector, reflect the efficiency of its operational, cost and investment management. Part of these results reflect the capture of synergies from the merger of Vero with Americanet, completed at the beginning of the year.

“Throughout the semester, we have focused our efforts on maximizing synergies. We have been able to capture opportunities with better speed and quality than planned in all areas, from revenue to cash generation. The results are clearly seen in the reported numbers, which reinforce the planned growth, the result of responsible management guided by the pursuit of maximum operational efficiency and delivery of our purpose of being the leader in the (r)evolution of the Customer experience,” highlights Fabiano Ferreira, CEO of Vero.

In 2Q24, Vero recorded a record ARPU (average ticket size) of R$109, up 3.6% year-on-year, in addition to a churn rate of 1.9%, which positions the company at the forefront of the sector. Another highlight is the combined company's return on invested capital (ROIC) of 21%, continually the best among ISPs.

“The excellent ARPU reflects both the arrival of the new portfolio aimed at the B2B and B2C segments, launched in April, and which is already starting to contribute to the result, as well as the readjustment of offers and the migration of base customers to the new packages, attracted by more speed, Wi-Fi 6 (the most modern) and truly differentiated value-added services, such as YouTube Premium and equipment rental (notebook, desktop, smartphone, among others),” comments Ferreira.

Net revenue in the months of April, May and June was R$412 million, an increase of 4.5% compared to the same period of the previous year. Adjusted EBITDA was R$202 million, an increase of 4.8% in the same comparison. In the accumulated half-year, Vero recorded growth of 5.1% in net revenue, totaling R$816.5 million, and 10.8% in Adjusted EBITDA, which totaled R$425 million. In the first six months of the year, it also reversed the net loss recorded in the first half of 2023, reporting a profit of more than R$30 million.

After issuing R$725 million in debentures in mid-March of this year, the company reduced its net debt, maintaining its commitment to reducing its leverage and generating value for investors. In the first half of the year, Vero recorded a 30% reduction in financial expenses compared to the same period of the previous year, reinforcing the company's diligent liability management and contributing to the year's positive results.

This month, the company is working on expanding its mobile network to 126 more cities in three new states (Rio Grande do Sul, Paraná and Minas Gerais), strengthening its business model. With the launch, Vero now has 300 cities with mobile coverage.

“With an even more comprehensive range of services, we want to offer our customers the convenience of purchasing, all at once, what they need to stay connected. The goal is to increase sales and consolidate migrations in these locations, which will contribute to not only revenue gains, but also margin gains. Our focus is on delivering a more robust, high-quality service with greater reach for B2C and B2B customers,” concludes Ferreira. “We are optimistic about the coming months and certain that we will continue to capture the best synergies from the integration process, strengthening and expanding our services responsibly, always guided by our commitment to our customers and positively differentiating ourselves in this market,” adds the executive.

About Vero

Vero is a telecommunications company that brings a customer-centric culture to 1.3 million subscribers and 4.5 million users impacted daily in 425 cities in Brazil, in the South, Southeast and Central-West regions. The company's infrastructure has 77,000 km of network, of which 23,700 km is backbone and 53,500 km is FTTx.