THE Telefonica Brazil released the financial results for the 3rd quarter of 2022. The owner of Alive obtained a net profit of R$ 1.43 billion, up 9.3% year-on-year. With an increase in fiber optic and postpaid cellular accesses, the operator deactivated 3 million lines from Oi Móvel that were considered inactive.
Vivo – Financial results for the 1st quarter of 2022
Check below Vivo’s main indicators for the 3rd quarter of 2022 and the comparison with the same period of the previous year:
|Indicator||3rd quarter of 2022||3rd quarter of 2021||Difference|
|Net operating revenue||BRL 12.19 billion||BRL 11.03 billion||+10.6%|
|Net profit||BRL 1.43 billion||BRL 1.31 billion||+9.3%|
|Capex (investments)||BRL 2.58 billion||BRL 2.15 billion||+20.2%|
|Number of customers (total accesses)||111.6 million||97.42 million||+14.6%|
3 million Oi Móvel lines were deactivated
THE Vivo was the third largest buyer of Oi Móvel in number of accesses — it was responsible for receiving 10.5 million customers from 11 different area codes. However, this number has already dropped considerably: during the 3rd quarter, the operator claims to have deactivated 3 million lines from the acquisition.
According to Vivo, disconnections were made from lines considered inactive in its criteria – which was not disclosed. Of the canceled chips, 2.2 million use prepaid plans, while 797,000 fall into the postpaid category.
Even with the high disconnection, Vivo grew the number of mobile customers by 18% year-on-year. The operator managed to increase the postpaid base by 19%, and cell phone revenue jumped 13.8%.
Vivo also announced spending of R$0.4 billion over the first nine months of 2022 to reinforce the network to integrate customers from Oi Móvel. Without detailing the figures, the company also states that it directed investments to activation of 5G technology in Brazilian capitals.
Vivo Fibra is available for 22.3 million homes
The growth of fixed services was more timid: net revenue was R$ 3.71 billion, up 2.1% in the annual comparison. Vivo celebrates the good performance of products with the latest technology (fiber optics, IPTV and corporate services), which already represent 74.6% of fixed segment revenues and grew 9% in the year.
The operator ended the quarter with coverage FTTH (when optical fiber arrives inside the customer’s home) available in 22.3 million homes in 380 cities, up 22% compared to the previous year. Vivo Fibra has 5.3 million connected homes (customers), which resulted in growth of 21%.
The average speed of Vivo Fibra users is 223 Mb/s. The operator celebrates the launch of the new 1 Gb/s planand states that 40% of gross additions correspond to Vivo Total, a combo that includes fixed and cellular services.
The drop in revenue from legacy services held up the balance of the wireline business. Vivo saw revenue from products such as copper broadband, landline telephone or satellite TV fall 17.7% in the year.
Vivo wants to lead financial services
Vivo wants to diversify its products beyond telecommunications. The operator highlights the growth of Vivo Money, a personal loan service that has already granted BRL 160 million in loans since December 2021.
According to telesynthesis, Vivo also wants to pursue leadership in the financial services market. Christian Gebara, CEO of the company, says he will offer credit for the purchase of smartphones and notebooks, and celebrates the high margins for this type of business.
Tele also announced an investment of US$ 3 million in Klavi, a fintech that offers Open Finance solutions.