Telefonica Brasil S.A., - ADR (Representing Ord)

Strong Financial Performance: Vivo reported a remarkable performance in 2025, with total revenues rising by 7.1% in Q4 2025, primarily driven by mobile service revenue growth of 7% and fixed services growth of 5.4%. Net income for the full year reached BRL 7.2 billion, reflecting an 11.2% growth, while free cash flow increased by 11.4% to BRL 9.2 billion.

Convergence Strategy and Market Position: Vivo is focusing on its convergence strategy, with 62.7% of its 7.8 million FTTH customers being on the Vivo Total plan. This strategy aims to enhance customer loyalty and reduce churn, which for fiber services is at a record low of 1.4%. The company increased market share in fiber from 18.8% to 19.3% during the year, signaling strong competitive positioning.

CapEx Optimization and Cash Flow: The company achieved a CapEx to revenue ratio decline to 15.6%, indicating improved capital efficiency. Operating cash flow before leases rose by 13.4% to BRL 15.6 billion, demonstrating the company's capability to convert EBITDA into cash effectively. Vivo plans to maintain this trend of capital efficiency while still supporting necessary infrastructure investments, particularly in 5G.