Telefônica Brasil S.A.

Vivo reported quarterly total revenue growth of 7.6% year over year, with mobile service revenue up 6.6% and fixed revenue up 6%. EBITDA rose 10.9% year over year to a 41.8% margin, while total costs increased 5.3% and operating expenses rose 3.2%. In the first half of 2026, operating cash flow was BRL 8.2 billion, net income was BRL 2.8 billion (up 17.9%), and free cash flow was BRL 4.9 billion. CapEx in the quarter was BRL 2.6 billion, equal to 16.4% of revenue, and net debt/EBITDA was 0.4x. For shareholder returns, the company said it had already disbursed BRL 7 billion in 2026 and had declared BRL 2.2 billion in interest on capital to be paid by April 2027 or earlier; it also reiterated a buyback program of up to BRL 1 billion through February 2027 and said it expects to distribute at least 100% of 2026 net income.

Christian Mauad Gebara framed the quarter as evidence that Vivo’s strategy is working across connectivity, fiber, and new businesses. He emphasized convergence as a core advantage, saying Vivo Total and other integrated offers are driving customer preference, lower churn, and monetization. His tone was confident but measured, repeatedly stressing disciplined pricing, customer loyalty, and the ability to grow revenues above inflation.

Rodrigo Rossi Monari focused on operating leverage, noting total costs rose 5.3% while operating expenses increased only 3.2% and personnel costs grew 3.2%, below inflation. He highlighted BRL 202 million in copper-sale proceeds in the quarter and said leases are growing only 1.8% year over year on a 12-month basis, with efforts to keep lease payments below mobile service revenue growth. He also pointed to BRL 8.2 billion of operating cash flow before leases in the first half, BRL 4.9 billion of free cash flow, a stable 0.4x net debt/EBITDA ratio, and ongoing shareholder distributions including BRL 7 billion already paid and a BRL 1 billion buyback authorization.

Analysts pressed management on mobile competition, discounting, prepaid momentum, and the risk that light plans could cannibalize higher-priced products. Management said the competitive environment was broadly similar to last quarter, with some pockets of aggressiveness, and argued that light plans are targeted at prepaid customers who cannot easily migrate to hybrid; they said the offer reduces bad-debt risk and does not cannibalize hybrid. Questions also focused on lease savings, device sales and margins, and whether asset sales could lift second-half net income; management said device/electronics sales support revenue and store traffic, lease costs are being managed through contract negotiation, tower-efficiency efforts and possible structural moves, and some asset-sale items could improve later quarters but no new guidance was given.