Vivo Q1 Financial Performance | 11.3% Surge in Profits

Telefônica Brasil, the driving force behind Vivo, announced its Q1 2023 financial performance, witnessing a substantial 11.3% net profit surge. This upward trend is largely attributed to the stellar performance in the mobile and fixed telephony sectors.

Understanding Vivo Q1 Financial Performance

Here are Vivo’s key financial indicators for Q1 2023 in comparison with the same period in the previous year:

  • Net profit: BRL 835 million (an increase of 11.3%)
  • Net operating revenue: BRL 12.72 billion (up by 12.1%)
  • Capex (investments): BRL 1.68 billion (a decrease of 10.3%)
  • Customer base: 112.28 million (a growth of 12.3%)

Furthermore, Vivo’s mobile service, the company’s flagship, contributed BRL 8.81 billion to the company’s revenue, marking a 15.4% uptick. By the end of the quarter, Vivo boasted 98.05 million mobile customers, a 14.9% increase.

A significant part of this growth relates to the acquisition of Oi Móvel. However, during the quarter, the company discontinued 457 thousand accesses in addition to 3.4 million previously inactive SIM cards.

Exploring Vivo Q1 Financial Performance: Postpaid and Prepaid Services

Vivo postpaid service, with a higher cost for users, generated R$ 6.45 billion, an increase of 15.4% annually. Prepaid billing reached R$ 1.51 billion, indicating an 18% growth from the previous year. Vivo’s mobile customers, on average, spend R$27.1 per month (ARPU). Moreover, the operator reports that 5G SA is accessible in 58 municipalities, with 20% of postpaid users owning 5G-compatible smartphones.

Vivo Q1 Financial Performance

Financial Performance & Influence of Fiber Optic Customers

Vivo earned revenues of R$ 3.9 billion from fixed services during the quarter, a rise of 3.5%. Despite the positive figures, the company experienced a 20.5% drop in billing with older services like fixed telephone and metallic pair broadband.

Moreover, Vivo concluded the quarter with 5.65 million Vivo Fibra broadband subscribers, a 16.8% rise year-on-year. These customers spend, on average, R$ 89.6 per month, with an average speed of the customer base being 251 Mb/s.

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Conclusion

Vivo’s Q1 2023 financial performance underscores the significant role of fiber optic and postpaid cellular customers in revenue growth. The company continues to adapt and innovate, phasing out older services while focusing on contemporary and future-ready solutions. With its promising growth trajectory, Vivo is poised to further strengthen its position in the telecommunications industry.

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