Telefônica Brasil S.A. reported its fourth‑quarter 2025 results on February 23 2026, showing net operating revenue of BRL 15.611 billion, a 7.1% year‑over‑year increase that reflects steady demand in its core mobile and fiber‑to‑home (FTTH) businesses. The growth was driven by a 9.0% rise in mobile postpaid revenue and a 9.8% increase in FTTH revenue, which together offset modest declines in legacy fixed‑line services.
Earnings per share for the quarter were BRL 0.59, falling short of the consensus estimate of BRL 1.15. The miss can be attributed to a combination of higher-than‑expected operating costs and a one‑time charge related to the migration of concession assets, which reduced net income. While the company’s EBITDA before concession migration effects reached BRL 6.60 billion—up 17.7% year‑over‑year—EBITDA after migration rose 8.1% to BRL 6.70 billion, maintaining a margin of 42.9%. The margin expansion of 0.4 percentage points reflects disciplined cost management amid a favorable mix shift toward higher‑margin mobile and FTTH services.
Capex for the quarter fell 4.0% year‑over‑year to BRL 2.36 billion, supporting continued investment in 5G and fiber infrastructure while preserving cash flow. The company also reported a 12.0% increase in connected households, underscoring the success of its FTTH rollout and the growing demand for high‑speed broadband in Brazil’s expanding digital economy.
Telefônica Brasil reaffirmed its commitment to return at least 100% of net income to shareholders through 2026. For 2025 the payout ratio reached 103.4%, and the company has already approved a 2026 distribution of BRL 6.99 billion. This consistent shareholder return policy signals management’s confidence in the company’s cash‑generating ability and its disciplined capital allocation strategy.
Market reaction to the results was positive, with analysts noting the company’s robust revenue growth, stable EBITDA margins, and strong free‑cash‑flow generation. Investors were encouraged by the firm’s continued investment in 5G and fiber, which positions Telefônica Brasil to capture future growth in Brazil’s digital services market while maintaining a high level of shareholder returns.
The earnings release provides a clear view of Telefônica Brasil’s operational performance and strategic priorities, offering investors updated insight into the company’s financial health and future outlook.
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