管理層發言
Good morning, ladies and gentlemen. Welcome to Vivo's Second Quarter 2026 Earnings Call. This conference is being recorded and the replay will be available at the company's website at ri.telefonica.com.br. The presentation will also be available for download. This call is also available in Portuguese. To access, you can press the globe icon on the lower right side of your Zoom screen and then choose to enter the Portuguese room. After that, select mute original audio. We would like to inform that all attendees will only be listening to the conference during the presentation and then we will start the Q&A session. Further instructions will be provided. Before proceeding, we would like to clarify that any statements that may be made during this conference call regarding the company's business prospects, operational and financial projections and goals are the beliefs and assumptions of Vivo's executive board and the current information available to the company. These statements may involve risks and uncertainties as they relate to future events and, therefore, depend on circumstances that may or may not occur. Investors should be aware of events related to the macroeconomic scenario, the industry, and other factors that could cause results to differ materially from those expressed in the respective forward-looking statements. Present at this conference, we have Mr. Christian Mauad Gebara, CEO of the company, Mr. Rodrigo Rossi Monari, CFO and Investor Relations Officer, and Mr. João Pedro Soares Carneiro, Investor Relations Director. Now I will turn the conference over to Mr. João Pedro Soares Carneiro, Investor Relations Director of Vivo. Mr. Carneiro, you may begin your conference.
Good morning, everyone, and welcome to Vivo's second quarter 2026 earnings call. Today, our CEO, Christian Mauad Gebara, will present Vivo's ongoing execution in connectivity and new businesses, as well as share our key ESG highlights for the quarter. Then Rodrigo Rossi Monari, our CFO, will give you more color on cost evolution, cash generation, profitability, and shareholder distribution going forward. With that, let me turn the call over to Christian.
Thank you, João. Good morning, everyone, and thank you for joining us today. Building on the positive performance from the beginning of the year, Vivo delivered another quarter of solid execution combining healthy operational and financial trends. These numbers demonstrate the strength of our business model, the quality of our customer base, and the consistency of our strategy within a dynamic environment. Customer engagement remains at the center of our growth story. In mobile, we kept adding customers with postpaid access at 73.2 million, up 6.9% year-over-year. In fiber, homes connected reached 8.2 million, advancing 11.3% year-over-year, while our footprint expanded to 32 million homes passed. These accomplishments reflect our sustained commercial momentum, supported by the attractiveness of our value proposition and customers' recognition of the quality and differentiation we deliver. Financially, total revenue increased above inflation once again, up 7.6% year-over-year. Mobile service revenues advanced 6.6%, while fixed revenues grew 6%, highlighting the improvement of fiber and the positive contribution of our B2B operations. Profitability continues to outpace revenue growth. EBITDA advanced 10.9% year-over-year with a margin of 41.8%. In the first half of the year, operating cash flow totaled BRL 8.2 billion while net income rose 17.9% to BRL 2.8 billion. Free cash flow generation reached BRL 4.9 billion, underscoring the strength of our cash generation capabilities. Our operational excellence and financial discipline support attractive shareholder returns. Year to date, we declared BRL 2.2 billion in interest on capital to be paid by April 2027, or before, representing an evolution of 34.5% versus the same period last year, and we remain fully committed to our shareholder remuneration guidance for this year. On Slide 4, the benefits of our diversified ecosystem are becoming increasingly evident, supporting growth across connectivity, digital services and the sale of handsets and electronics. Total revenues increased 7.6% year-over-year in the quarter, reflecting balanced contributions across our top-line. Mobile service revenues advanced 6.6%, while FTTH revenues delivered an even stronger performance of 10.7%. Another highlight was the handsets and electronics segment, which soared 27.8% year-over-year marking its highest annual evolution in five years. This performance reflects the success of our commercial initiatives and the growing relevance of Vivo as a destination for customer technology products. As our ecosystem expands, the quality and predictability of revenues keep improving. Recurring revenues attained 84.8% of service revenues, extending a positive trend that has consistently strengthened over recent quarters. This evolution further reinforces the resilience of our business model and the sustainability of our trajectory. Turning to Slide 5, our mobile operation stands out through its ability to combine customer growth, monetization and retention. Total mobile base increased 2.6% year-over-year as postpaid access rose 7.3%, reaching 52.4 million while machine-to-machine and dongles grew 6.1%, reinforcing our leadership across multiple mobile segments. Commercial activity remained solid with postpaid net additions rising 14.1% year-over-year. This performance confirms Vivo's competitiveness and the attractiveness of our offers. At the same time, we remain focused on successfully executing our More for More strategy. Mobile ARPU reached a new high, with postpaid churn at stable levels of only 1%. Notably, even after recent price adjustments, customer loyalty remained unchanged, reflecting our superior network and service excellence. The evolution of 5G is an important part of the story. Today, nearly one-third of our mobile base, excluding machine-to-machine and dongles, uses 5G every day. As usage continues to ramp up, we are further enhancing customer experience while creating new opportunities to deepen engagement and support future revenue expansion. Overall, these results underscore the resilience and monetization potential of our mobile platform. The combination of postpaid expansion, record ARPU, resilient churn levels, and growing 5G adoption demonstrates how Vivo is creating a solid foundation for ongoing profitable growth. On Slide 6, we illustrate how scale, quality and convergence underpin Vivo's ability to raise the bar in the fiber market. We closed the quarter with 8.2 million fiber access, an increase of 11.3% year-over-year. Once again, convergence was the key driver of this performance. Vivo Total reached 3.8 million customers, up 29.4% compared to last year and further increasing its relevance within our fiber base. This reinforces a trend that we have seen for several quarters: customers increasingly demand integrated solutions that unite connectivity, convenience, and superior experience. Beyond growth, our customer base profile remains a clear differentiator. Fiber churn declined to 1.4%, reaching historically low levels and reflecting the depth of our customer relationships as well as the trust in the services we deliver. This high level of loyalty supports the long-term sustainability of our fiber business and contributes to stronger lifetime value generation. Commercial momentum also remained healthy throughout the period. FTTH net additions reached 213,000 accesses, 6% higher than a year ago. At the same time, we have continued to expand our footprint with both speed and discipline. Homes passed reached 32 million while take up improved to 25.6%. This pattern of network expansion and rising penetration confirms that we are successfully converting infrastructure investments into profitable customer growth. Moving to Slide 7, we continue to see the benefits of our strategy to expand beyond connectivity and build a distinguished ecosystem capable of serving a broader range of customer needs. This approach is translating into consistent growth and stronger monetization. On a last-12-month basis, B2C revenues reached BRL 46.6 billion, advancing 6.8% year-over-year. This performance reflects both the resilience of our connectivity business and accelerating contribution of new business revenues, which expanded 33.6% versus last year. The sustainability of this growth is reflected in customer monetization. B2C revenue per RGU reached an undisclosed amount of reais per month, continuing the upward trend observed over the past several quarters. As customers adopt more products and services within the Vivo platform, we strengthen engagement and deepen the relationship with our more than 56 million clients. New business endures as one of the most dynamic components of our portfolio. Consumer electronics revenues increased 63.8%. Health and wellness advanced 58.2%. Video and music OTTs grew 25.7%. And financial services expanded 12.8%. Together, these businesses now represent 3.4% of total revenues. Innovation also remains an important differentiator. During the quarter, we reinforced Vivo's position as a leading digital hub by introducing exclusive benefits related to Gemini AI and Google Cloud Storage for eligible customers. In addition, we expanded the attractiveness of our offers through partnerships such as YouTube Premium, providing customers with a richer digital experience and further increasing the relevance of our plans. Through tailored offerings, digital innovation and a growing portfolio of services, we strengthened customer lifetime value and created new avenues for future expansion. Turning to Slide 8, our B2B business continues to demonstrate the strength of Vivo's strategy to evolve from a connectivity provider into a trusted technology partner for enterprises across multiple industries. B2B revenues reached BRL 13.9 billion on a last-12-month basis, up 9.2% year-over-year. Digital B2B remained the main growth vector, advancing 14.9% while connectivity revenues rose 5.8%. Looking at the portfolio, cloud services continued to lead performance, with 20.9% growth. Digital solutions increased 20.2%. Cybersecurity advanced 10%, and IoT and messaging grew 1% year-over-year. What stands out is not only the performance itself, but also the breadth of our capabilities. Today, enterprises seek partners capable of delivering tailored end-to-end solutions rather than isolated products. This trend continues to expand Vivo's opportunities across both private and public sectors. A good example of this approach is our recent partnership with EcoRodovias to expand mobile coverage along 400 kilometers of highways in Goiás and Minas Gerais benefiting approximately 1.4 million people. Beyond enhancing connectivity, projects like this highlight Vivo's ability to develop customized initiatives that create value for customers and society. On Slide 9, we highlight the continued advancement of our ESG agenda with initiatives that generate measurable impact and recognition from leading institutions. On the environmental front, we continue to expand programs that combine education, awareness and circular economy principles. Through the third edition of Vivo Recicle, aligned with Vivo's volunteer day, we promoted environmental education and electronic waste collection across 33 schools, benefiting approximately 32,000 students, teachers, and community members. As a result, the volume of materials collected increased 28% year-over-year, demonstrating growing engagement with responsible consumption and recycling practices. We also achieved important milestones in waste management and environmental stewardship. Through our certified recycling seal, 100% of our packaging is now recyclable across all Brazilian states, exceeding our original target by 66 percentage points. In parallel, the Floresta Futuro Vivo progressed with the planting of its first seedlings in engagement with local communities, reinforcing our commitment to regeneration and biodiversity preservation. From a governance perspective, Vivo was awarded the Pro-Ethics Seal and achieved the maximum score in FTSE Russell's ESG assessment. These achievements were complemented by several recognitions, including being named the best ESG company in the sector by ISE B3 for the third consecutive year and ranking first in LinkedIn Top Companies in São Paulo. We also surpassed our 2025 gender and racial diversity targets under the UN Global Compact Brazil's Ambition 2030 initiative. With that, I would like to hand over to Rodrigo, who will walk you through our financial results.
Thank you. Thank you, Christian, and good morning, everyone. Turning to Slide 10, our results continue to demonstrate the scalability of our business model as disciplined cost management and an evolving business mix translated into double-digit EBITDA expansion and further margin improvement. Total costs increased 5.3% year-over-year. This was mainly driven by higher costs of services and goods sold, rising 10.2% as a result of the performance in handset sales, digital solutions and new business revenues. These costs remain closely linked to commercial activity and ongoing diversification of our revenue mix. At the same time, operating expenses remained under control, rising only 3.2%. Commercial and infrastructure rose 5.7% year-over-year, supported by business growth and ongoing investments in customer experience and network quality. Personnel expenses grew below inflation at 3.2% year-over-year, highlighting our efforts to drive productivity and efficiency across the organization. Bad debt showed a behavior consistent with our disciplined credit practices and the resilient quality of our customer base, remaining flat year-over-year in nominal terms and reducing as a percentage of gross revenue. We are also on track in our migration from concession to authorization plan, generating BRL 202 million in proceeds from copper sales in the quarter. Going forward, we expect to further advance in the value capture through these initiatives. As a result, EBITDA grew double-digit for the first time in 11 quarters, at 10.9% year-over-year, and margins expanded by 1.3 percentage points to 41.8%. This illustrates our ability to capture growth while preserving cost discipline and operational productivity. On Slide 11, we stay focused on investing for future growth while sustaining efficiency and financial discipline. As we capture opportunities across mobile, fiber, and digital services, we are steadily enhancing the infrastructure and capabilities that underpin our long-term competitiveness. CapEx totaled BRL 2.6 billion in the quarter, equivalent to 16.4% of revenues, slightly below the previous year. These investments were mainly focused on supporting growing fiber and expansion of 5G coverage. We are now present in 978 cities, representing an increase of 325 cities compared to the same period last year, reaching more than 73% of the Brazilian population. As a result of our investment strategy, we are enhancing our returns and cash generation profile. In the first half of 2026, operating cash flow before leases reached BRL 8.2 billion, growing 11.3% year-over-year and exceeding the pace of CapEx expansion. This reflects our ability to combine network expansion with operational excellence, translating top-line growth and higher profitability into stronger cash flow. Moving to the next slide, we present the progress in profitability, cash flow and balance sheet management. Net income for the first half of the year was BRL 2.8 billion, up 17.9%, delivering the strongest first half year-over-year evolution in three years. This result reflects the consistent execution discussed throughout the presentation, supported by revenue growth above inflation, margin expansion and a greater contribution from more valuable revenue streams across our portfolio. Free cash flow has followed a positive trajectory since third quarter 2025, reflecting our consistent ability to convert operating performance into cash. While quarterly results can be affected by temporary effects that distort year-over-year comparability, the underlying trend remains sound. This is evidenced by the BRL 4.9 billion of free cash flow generated in the first half of 2026, reinforcing the robustness of our cash generation profile and the strength of our balance sheet. As in prior years, cash generation remains subject to some quarterly phasing effects with the overall growth trend remaining unchanged. Net debt to EBITDA was stable at just 0.4x while our net cash position remained at robust levels, providing significant financial flexibility and supporting future opportunities. By combining organic growth, ongoing business transformation, strong cash generation, and prudent financial management, we are creating a firm foundation for long-term value while maintaining one of the strongest balance sheets in the sector. On Slide 13, shareholder remuneration remains one of the main pillars of our capital allocation framework. We have already disbursed BRL 7 billion to shareholders as part of our remuneration guidance for 2026, an increase of 32% compared to the same period of 2025. Additionally, we still have a share buyback program of up to BRL 1 billion in place until February 2027. Reinforcing this track record, the total amount declared since the beginning of the year stands at BRL 2.2 billion to be paid by early 2027. This represents a growth of 34.5% compared to the previous year. Looking ahead, we remain committed to distributing at least 100% of our 2026 net income, reflecting our confidence in business fundamentals, a strong cash flow profile and continued focus on value creation for shareholders. Thank you.
分析師問答
We are now ready to move to the Q&A session. We are going to start the Q&A session for investors and analysts. If you wish to ask a question, please press the reaction button and then click on raise hand. If your question has already been answered, you can leave the queue by clicking on lower your hand. Our first question comes from Mr. Luis Chagas from XP. Please, Luis, your microphone is already enabled.
Hello, guys. Hi, Christian. Hi, Rodrigo. Hi, João. Congrats on the results and thank you for the opportunity to ask questions. I have two questions. The first one: what is your perspective on the current competitive landscape in mobile? In which segments has competition been most intense? And the second one is about prepaid. In this quarter, prepaid posted positive sequential net adds. How does that reflect a change in your commercial approach versus a change in competition? Should we treat this as a structural inflection or a quite specific effect?
Hi, Luis. This is Christian. Thank you for your comments and your question. The competitive environment remains similar to the previous quarter; it is balanced, but in some markets and some segments a little more aggressive. Vivo's strategy stands on upselling data, digital services, and totalization of customers, with a very disciplined monetization. The results of this quarter once again proved that we have been successful, especially in the postpaid segment, because we have been upselling — first from prepaid to hybrid, but also hybrid to postpaid. Overall, we have positive portability and churn remained very controlled at the same level of 1% in the second quarter of 2026. Regarding pricing strategy, we have been adjusting front-book prices for pure prospects for hybrid; we did that in May. We also did back-book pricing for our customer base in April, covering more than 75% of the hybrid base and almost 80% of pure postpaid. So we will be keeping our strategy, which is delivering great results and positive net adds, as I said, while postpaid growth was 7.9%. While competition exists and we are very attentive, specifically in some markets where we have more players competing and in some segments, our approach remains disciplined. Regarding prepaid, it remains the most competitive segment. Actually, I think it could be more rational, given that connectivity services are essential and relatively inexpensive compared to many countries. We also have initiatives like zero rating for WhatsApp and others that may make it more difficult in the future to migrate to hybrid since many offers are around BRL 30 per month as prepaid. We have been able to capture customers — you could see net adds are positive — and that is good to keep prepaid growing. We had a slightly better evolution than other quarters. As you know, prepaid revenues represent just 30% of total mobile service revenues for Vivo. But we need to capture prepaid customers to be able, in the future, to migrate them to hybrid. So, I think the positive net adds are part of our commercial activity rather than a structural market shift. The price difference remains high between prepaid and the entry point of hybrid.
Thank you, Christian. Very good answer. Thank you.
Our next question comes from Mr. Marcelo Santos from JPMorgan. Please, Marcelo, the floor is now yours.
Hi. Thank you for allowing me to ask questions. The first question: I want to double-click on mobile competition and mobile plans. We saw an emergence of light plans like Vivo Lite in the range of BRL 30–35 per month and competitors are also doing something similar. What is the risk of cannibalization of the higher-priced hybrid plans? I wanted to get your comments on these new developments and why this is happening. Second, maybe for Rodrigo: what are the main initiatives you have ongoing to secure savings on lease lines? I know you have a lot of things going on, so please provide an update on how that is going. Thank you very much.
This is Christian. The light plans are very segmented. These plans represent a simpler customer proposition compared to traditional postpaid offerings. They provide a streamlined onboarding journey with characteristics similar to digital subscription services. What they allow us is to address customer segments that may not qualify for traditional hybrid plans because they present less onboarding friction and lower bad debt exposure when paid by credit card. We are targeting prepaid customers that we would not migrate to hybrid due to credit scoring issues, for instance. We can do that through credit card payment. There are annual subscription options and monthly options. The annual option guarantees 12 months with no bad debt risk, while the monthly option is priced at a level that is comparable with some lower-tier hybrid offers in the market. We reduce or eliminate bad debt exposure and, when the offer is annual, we guarantee a 12-month contribution from the customer. Compared to the market, the average prepaid offer among players is around BRL 30 per month. We believe we are pursuing a More for More strategy because we guarantee recurrence from prepaid customers that otherwise would not be guaranteed, and we reduce or eliminate bad debt exposure.
Okay. Yes. You have. Thank you very much.
Rodrigo here. Regarding leasing, it is important to remember there is a lot of phasing on leasing payments. But if you look on a 12-month basis, our leases are increasing only 1.8% year-over-year, which means we are on track with our goal to keep lease payments growing below mobile services revenue. Our initiatives fall into a few pillars: one is renegotiation of contracts with tower hosts; another is finding efficiencies in usage and technology regarding the tower footprint; and a third is more structural — seeking opportunities to increase the tenant ratio per tower. In Brazil, we have an average of around 1.4 tenants per tower; in the U.S., it is more than two. We see room to increase this rate, which would drive savings over time.
Very clear. Thank you very much.
Our next question comes from Mr. Gustavo Miele from Goldman Sachs. Please, Gustavo, the floor is now yours.
Hi, Christian, Rodrigo, João, good morning. Thanks for the opportunity. I have two questions. First, regarding profitability: we see that this is the third quarter in a row that device sales appear to be a positive highlight for the company, but investors ask about the impact this could have on company margins. Should device-driven revenue be diluted in margins going forward? Are there levers to offset the impact of mix on margins for the remainder of 2026? Second, we note a nonrecurring financial revenue of BRL 50 million related to a tax amnesty program. Is this purely nonrecurring or might it repeat in the second half? Thank you very much.
Gustavo, this is Christian. Yes, the BRL 50 million item is nonrecurring as stated. Regarding EBITDA, it is important to see its evolution. We have been growing EBITDA at 10.9%. Even when excluding certain effects like copper sale, the evolution is very strong. The strategy of selling devices and electronics is successful beyond the absolute numbers it brings to revenues or EBITDA. It also brings more customers to our stores: we have 1,700 stores that attract people. Once they are there, apart from buying devices, we are also able to sell services. Electronics are not only smartphones anymore; we are selling accessories and other products that have much better margins than smartphones. So when I sell a smartphone plus case, charger and accessories, the combined margin is different. Therefore, EBITDA has shown strong evolution. Margins have improved, but more important is the evolution of EBITDA minus CapEx in absolute terms, which has improved significantly. This is part of our strategy to have more smartphones and electronics, driving customers to stores both online and offline and contributing to the sale of higher-margin products and services.
That is very clear, Christian. Thank you very much.
Our next question comes from Mr. Rogério Araújo from Bank of America. Please, Rogério, you may now speak.
Hey. Good morning, Christian, Rodrigo, and JP. Thanks for the opportunity. Two questions: First, we heard on a competitor's call that Vivo was aggressive on discounts in the second quarter. Could you clarify what may have driven that perception and what should we expect going forward in terms of discounting? Second, on churn ratio: could you walk through the main drivers of your lower churn versus competition? Is it purely the postpaid mix and conversions, or are there other factors? How do you see this lower churn translating to tangible benefits going forward? Thank you.
I think the tangible benefits are the evolution of our revenues across many consecutive quarters; that is the best evidence. Why we believe our churn represents customer preference and loyalty to Vivo is a combination of factors. I do not know the source of the comment you referenced, but I do not think we have been more aggressive with offers across the market. What we do have is the ability to offer the best convergent offer in the market in a single plan, which is Vivo Total. We can offer all services in that plan, and that is driving preference and loyalty. If you look at the evolution of Vivo Total, one year ago we had about 30% fewer customers. Now we have 3.8 million out of the 8.2 million fiber accesses. Additionally, we have convergent plans with different options representing another 1.5 million. Vivo has been able to drive convergence in a way that is not easily replicated, and that is driving the general evolution of revenues in both mobile and fixed and is also driving down churn in both mobile and fixed. It also gives us room to sell more digital services. If you consider digital services in B2C and B2B together, that is more than 12% of revenues; adding smart electronics is another roughly 7%, so about 19% of revenues come from services or products that are not 100% telecom. This one-stop-shop capability, combined with superior network quality in mobile and fixed and strong customer service, drives customer preference for Vivo. That is why churn is lower and why we expect continued benefits going forward.
That is very clear. Thank you so much.
Our next question comes from Mr. Leonardo Olmos from UBS. Please, Leonardo, you may now speak.
Hi, everyone. Good morning. Can you hear me well? Alright. Christian, you gave an interview discussing a probable acceleration of asset sales in the second half. There are some headwinds on net income this quarter. Should we expect an acceleration of net income in the second half of 2026 and, as a consequence, an acceleration of dividends?
I am not giving additional guidance, but I will explain copper and real estate and why I am positive about the potential increase in proceeds. Also, we indicated in the past that depreciation would be higher in these two quarters because of legacy technology we were depreciating; we are ending that depreciation process now, which gives a positive upside for the third and fourth quarters. Regarding copper and real estate: we said we would sell BRL 3 billion in copper. Up to now, in 2025 and 2026, we reached roughly BRL 443 million, so we are still missing BRL 2.5 billion. For real estate, we already sold BRL 206 million, and there is still a substantial amount to reach the target. Together, copper and real estate sales so far are around BRL 650 million, and we had suggested a target of BRL 4.5 billion, so we are still missing BRL 3.85 billion to reach that number. Going forward, the trend for copper sales improved from BRL 86 million in the first quarter to BRL 201.5 million in the second quarter, and the trend is expected to continue into the third and fourth quarters. In real estate, we did not sell much this quarter or the previous one, but we have organized the portfolio to start selling more in the next quarters. We selected 47 properties valued around BRL 600 million and have put them up for sale. We have started to receive offers and will seek the best price for the company. If these sales materialize, they will have a direct impact on net income in the quarters.
This is very promising. Thank you very much. Have a good day.
Our next question comes from Mr. Phani Kumar Kanumuri from HSBC. Please, Phani, you may now speak.
Hi. Good morning, everyone. My first question extends the previous topic about light plans. Have you so far seen any cannibalization of your control base shifting downwards toward the light plan? Second, regarding prepaid churn: this quarter it seemed you had very low prepaid churn compared to others. Was there any specific factor behind that? Thank you.
As I said earlier, Phani, the light plan is not cannibalizing hybrid. It is a different value proposition targeted to a different type of customer. It is more addressed to prepaid customers who cannot take a hybrid plan in the standard way for different reasons, such as credit scoring. Credit card penetration in Brazil has increased in recent years, so there are customers who can subscribe via credit card even if they would not qualify for hybrid via other credit assessments. We now have an annual plan or a monthly plan where we do not have bad debt risk and can offer an attractive price. The hybrid plan remains differentiated by other characteristics, specifically for customers who prefer not to use credit card payment. Prepaid churn is not something we follow as closely as other metrics because prepaid is driven by different dynamics. What matters more is to attract and keep a healthy customer base with high recurrence. We have been focused on increasing recurrence, and once customers show consistent recurrence, there are attractive ways for us to migrate them to hybrid. We also have the option to migrate them to light, where we can secure a guaranteed annual fee if they prefer an annual subscription model similar to digital plan subscriptions.
Okay. Did you see any change in recurrence from the prepaid customers? Is it improving?
It is going very well. The evolution of prepaid revenues is slightly negative, but it is better than previous quarters. We have been working closely to increase recurrence. When recurrence becomes more stable, there is always an attractive way for us to migrate these customers to hybrid or to a light plan with guaranteed annual revenue.
Thanks, everyone.
Our next question comes from Ms. Maria Clara Infantozzi from Itaú. Please, Maria Clara, you may now speak.
Hi, Christian, Rodrigo, and João. Thanks for the opportunity. I have two questions. First on fiber: how should we think about the next phase of growth for the business unit? Should we expect acceleration of organic growth ahead or could M&A be an important piece of growth in the next years? Please provide an update about the competitive environment in fiber. Second, on CapEx: it came slightly above our expectations this quarter. Is this related to accelerating investment in fiber? Could you elaborate? Thank you.
Maria Clara, thank you for the question. We have been growing fiber in a very healthy way, increasing the number of homes passed and net additions. This is the strongest evolution in the Brazilian market. We have been doing that organically. We also consolidated our prior partnerships in FiBrasil and now control almost 100% of that operation. On average, we build between 2.0 and 2.5 million homes passed per year and we added almost 900,000 customers last year. This strategy is driven by convergence: we deploy network where we have customers, especially postpaid customers, so we can address them with Vivo Total. Going forward, we see a market much larger than our current footprint. We can continue to grow organically or pursue M&A opportunities where there is limited overlay with our network and where technical conditions and CPE quality meet our standards and the pricing is right. We are attentive to the right targets; if we do not find them, we will continue building organically. Our strategy has been successful because of net adds and low churn, which reflect customer preference. Regarding CapEx, the quarter had seasonality effects. The intensity in this quarter does not reflect what we envision for the full year. As we said last year, we have been working on CapEx optimization in the ratio CapEx over revenues and continue with this positive trend. CapEx seasonality and revenue growth in several lines, some less CapEx-intensive, give us room to continue improving CapEx intensity on an annual basis.
Very clear. Thank you, Christian.
Our last question comes from Mr. Daniel Federle from Bradesco BBI. Please, Daniel, you may now speak.
Hello. Good morning, everyone. Congratulations on delivering very solid mobile service revenue growth amid intensifying competition. My first question: is it possible for Vivo to remain relatively immune while competitors are delivering much lower growth? The industry seems to be suffering — can Vivo stay apart from those trends? Second, one major investor concern is that the front-book price has not increased so far. It seems someone needs to make the first move given that Vivo is outperforming competitors. Do you see room for Vivo to be the first mover in increasing front-book prices in control plans? Thank you.
Thank you for the question. We are always analyzing opportunities given inflation; we need to consider inflation as our costs are affected by it. I think our ability to grow includes the ability to raise prices when needed. We have already made price adjustments as required. Our ability to continue growing revenues is driven by convergence — not only fixed and mobile convergence but also a broader convergence of services. We are focused on selling more digital services, insurance and other products, including electronics. That strategy is paying off and helps keep revenues growing even as market dynamics change. Regarding front-book pricing, there are segments not being adjusted for inflation where adjustments would be appropriate. Prepaid is a key example: if prepaid is not adjusted for inflation, it becomes difficult to migrate prepaid customers to higher entry-level hybrid plans. We are analyzing the market as a whole and will bring initiatives accordingly, such as the light plan we introduced, which helps capture recurrence, guarantee low bad debt, and address entry-level customers differently. We will continue to consider different ways to address prepaid and entry-level hybrid pricing.
So to confirm: prepaid prices may need to increase before increasing prices in the control segment?
I am not saying one has to come strictly before the other. I am saying we are analyzing all segments. Prepaid is part of the broader strategy because they are connected, but we will consider price adjustments across segments as appropriate.
Thank you very much, Christian. Very clear.
The Q&A session is over. We would like to hand the floor back to Mr. Christian Mauad Gebara for the company's final remarks.
Thank you all for being with us again. I believe this quarter proved more than ever our ability to drive revenues up, keep growing EBITDA, and monetize assets from the migration from concession to authorization, which is still in the beginning of the journey. More importantly, we demonstrated our ability to drive cash flow generation. We are very focused on EBITDA minus CapEx minus leases and have shown progress across these lines. At the same time, we remain attractive to customers, with solid net adds, downward trends in churn across services and products, and a differentiated revenue mix. Going forward, we will continue executing this strategy while keeping shareholder remuneration as a top agenda item. Thank you so much. If you have additional questions, please reach us. Thank you.
Vivo conference is now closed. We thank you for your participation and wish you a very nice day.