Vivo records R$5.5 billion in net profit for 2024, up 10.3%

This press release was published in English using an automatic translation system

By Telefônica Brasil

São Paulo, February 25, 2025 – With a well-defined strategy focused on services and solutions that digitalize its customers’ routines, Vivo ended 2024 with a net profit of R$5.5 billion, an increase of 10.3% compared to the previous year. In the fourth quarter, the indicator reached R$1.8 billion, an increase of 10.1%. Total revenue consolidates its upward trajectory in all quarters of last year, and ended 2024 at R$55.8 billion, an increase of 7.2%. In the last quarter, revenues registered R$14.6 billion, an increase of 7.7%. EBITDA closed the year at R$22.9 billion, an increase of 7.3%, and a margin of 41.0%; in the last three months of 2024, it reached R$6.2 billion, an increase of 7.8% and a margin of 42.5%.

Investments followed the previous year's pace and total R$9.2 billion, an increase of 2.3%. In the fourth quarter, investments totaled R$2.5 billion, an increase of 7.0% compared to the same period in 2023. The resources were directed to the mobile network, with emphasis on the expansion of 5G, present in 504 cities in the country, covering 61.3% of the population. Another important front is the expansion of the fiber network, enabling the company to meet its goal of covering 29 million homes by the end of 2024, in 444 Brazilian cities.

“The last year was marked by growth in our main financial and operational indicators, as well as the expansion of our fiber and 5G network, consolidating Vivo’s leadership in both segments. In addition to the connectivity infrastructure, we strengthened our digital ecosystem, where we operate mainly in the finance, health and education segments. We also moved forward with acquisitions and strategic investments in new companies, while reinforcing our commitment to remunerating our shareholders, in order to maintain Vivo as a reference in investor returns”, said Vivo’s CEO, Christian Gebara.

Rising revenues

Mobile service revenue reached R$9.2 billion in the fourth quarter, an increase of 7.0%. This increase was mainly driven by postpaid revenue in the period, which grew by 9.1%, reaching R$7.8 billion.

Revenue from devices and electronics, ranging from smartphones to connected home equipment, totaled R$1.2 billion, a growth of 13.0%. Sales of 5G-compatible cell phones stood out, accounting for 92% of all devices sold in the quarter.

The fixed segment reached R$4.2 billion in the quarter, an increase of 8.0%. The record growth was driven by fiber revenue of R$1.8 billion, an increase of 12.4%; and by revenue from corporate data, ICT and digital services, which reached R$1.3 billion in the last three months of the year, increasing 21.1%.

With seven million customers already connected to fiber, an increase of 12.7% compared to the same period last year, the company is strengthening its commercial strategy with Vivo Total – an offer that combines fiber and mobile. In the fourth quarter, this model accounts for 88% of fiber sales made in its own physical stores and already has 2.4 million subscribers, representing more than a third of the entire fiber access base. In 2024, revenue corresponding to Vivo Total is expected to grow by more than 90%, reflecting consumer preference for convergent services, contributing to Vivo recording the lowest fiber churn in recent years, at 1.49%.

The company ends 2024 with a total base of 116.1 million accesses, of which 102.3 million are from the mobile network. Postpaid customers stand out, totaling 66.5 million, an increase of 7.6% year-over-year, maintaining Vivo as the leader in this segment, with a 41.3% market share. In the last quarter, Vivo registered 891,000 new net additions in the postpaid segment (excluding M2M and dongles), representing growth of 28.8%. The relevant performance of the segment is due both to migrations from prepaid and the acquisition of new customers, reaching, in the last quarter, a historically low churn (excluding M2M and dongles ) of 0.99% per month, and an increase in ARPU (excluding M2M and dongles) of 1.6% year-over-year.

Operational management

The strong performance across the operation enabled an operating cash flow of R$13.7 billion in the year, an increase of 11.0%, and a margin of 24.6%; in the fourth quarter, this indicator totaled R$3.7 billion, an increase of 8.2% and a margin of 25.7%. The company ended 2024 with a free cash generation of R$8.2 billion, an increase of 0.9%, representing 14.7% of total revenue; if we isolate only the last quarter, growth goes to 82.4%, accounting for R$1.1 billion.

Total costs for the quarter, excluding depreciation and amortization expenses, amounted to R$8.4 billion, up 7.7%, due to increased commercial activity in the period, but partially offset by operational efficiencies and greater adoption of digital channels.

In 2024, the remuneration paid to shareholders totaled R$5.8 billion, an increase of 22.1%, reflecting a payout on net income of 105.3%. R$3.0 billion was paid in interest on equity, R$1.5 billion in funds arising from the capital reduction, while R$1.3 billion was invested in share buybacks. For the years 2025 to 2026, Vivo reiterates its intention to distribute to its shareholders an amount equal to or greater than 100% of the net income of each fiscal year.

“The 2024 performance reflects our strong operational and financial performance which, combined with the efficient allocation of investments, contributed to a 22.1% increase in remuneration to our shareholders”, comments David Melcon, Chief Financial Officer (CFO) of Vivo.

Digital business

Over the past year, the performance of new business revenues has driven Vivo's consolidation as a tech company, advancing its digital ecosystem. In the corporate market, it is the ideal partner for Brazilian companies moving towards digitalization, and its revenue from digital services – cloud solutions, cybersecurity, big data, IoT and messaging, sales and rental of IT equipment – is expected to reach R$4.1 billion in 2024, 20.6% higher than the previous year, representing 7.3% of Vivo's total revenue in the period.

It is important to highlight that in 2024 Vivo also made progress in the corporate sector with the acquisition and consolidation of new companies. The company acquired IPNET, a cloud computing specialist and the main integrator of Google cloud services in Brazil; and, in partnership with Auren Energia, announced the start of operations at GUD, created to capture the opportunities generated by the opening of the free energy market.

In B2C, financial services stand out with Vivo Pay, a brand that consolidates the company's financial solutions, such as personal loans, insurance, FGTS advances, PIX installments, among others. Considering the last 12 months, revenues from these services grew 14.5% in the annual comparison, registering R$ 461 million. In addition, the total amount of loans granted via Vivo Pay, since the beginning of operations in October 2020, reached R$ 904 million. In September, the Central Bank approved the application for authorization to operate Vivo Pay Sociedade de Crédito SA, which gives the company more flexibility to develop new financial services and increase efficiency in this business front.

With a customer base of millions, Vivo is an important commercial partner for the main music and video OTTs on the market. This service has generated R$725 million in revenue in the last 12 months, an increase of 29.8%, and ended the year with three million subscribers, an increase of 14.0%.

In Health and Well-Being, Vivo has Vale Saúde Sempre – a monthly subscription service with access to discounts on medical consultations, exams and medications – which has won over 390 thousand customers since the beginning of operations, in addition to 64,000 medical consultations, exams and procedures. In 2024 alone, more than 1.4 million items were sold at a discount in pharmacies. In the last 12 months, the segment's revenue closed at R$59 million.

Considering all B2C products, both telecommunications and new business, the average monthly revenue per CPF, in the last 12 months, reached R$62.3, consolidating Vivo's positioning as a one-stop-shop for its 57.2 million customers.

ESG

Vivo's operations are guided by criteria that strengthen its commitment to growing sustainably, through a robust ESG (environmental, social and governance) program.

At the end of 2024, the company, for the first time, became part of the Dow Jones Best-in-Class World Index portfolio, considered the most important sustainability index in the world. Vivo debuted as the only Brazilian telecom, leader in the Americas, with the 6th best performance in the sector globally. Other awards and certifications strengthen the company's ESG performance. Highlights include first place in the ISE B3, the Corporate Sustainability Index of the Brazilian Stock Exchange, achieved in early 2024, and currently among the top three positions; presence among the 100 most sustainable companies in the world by Corporate Knights ; participation in the Carbon Efficient Index (ICO2 B3), formed by companies with the best efficiency in managing greenhouse gas emissions; ECO award from Amcham Brasil in the ECO Leadership and Sustainability Practices in Processes categories; in addition to Merco Talentos 2024, with 11th place; and Ranking 100 Open Startups, among those that invested the most in open innovation.

Throughout last year, the Vivo Recicle program collected approximately 37 tons of electronic waste. This is a record and represents progress of more than 200% compared to 2023. As part of the company's net zero plan, its scope 1 and 2 emissions reached 24,000 tCO2e, 90% lower than in 2015. This result is the result of initiatives such as 100% renewable electricity, biofuel in the fleet, and operational efficiency of equipment. In addition, 87% of Vivo's carbon-intensive suppliers are committed to taking action for the climate, which strengthens the brand's goal of being net zero by 2035.

In the social sphere, in 2024, the Telefônica Vivo Foundation invested approximately R$50 million in educational projects and volunteer activities, benefiting approximately two million people. In order to promote diversity, 50% of the positions in Vivo's Internship 2025 and Trainee programs are reserved for black talent. The brand also joined Procon Racial, an initiative by the São Paulo consumer protection agency that unites companies in preventing and combating racism in consumer relations. The company was also the first in Brazil to be certified by the Pact for the Promotion of Racial Equity.