Company Overview

Telefônica Brasil S.A., together with its subsidiaries, operates as a mobile telecommunications company in Brazil. The company commercializes its services and solutions through the Vivo brand and stands as the largest wireless carrier in Brazil with 102 million customers, which is equal to about 39% market share. The firm is strongest in the postpaid business, where it has 68 million customers, or about 41% share of this market.

Telefônica Brasil S.A. was incorporated in 1998 and is headquartered in São Paulo, Brazil. The company was formerly known as Telecomunicações de São Paulo S.A. - TELESP and changed its name to Telefônica Brasil S.A. in October 2011.

Core Business Segments

Mobile Telecommunications

Wireless services and equipment contribute about 70% of total revenue. The company has demonstrated strong growth in its postpaid segment, with postpaid revenues growing +10.6% YoY in Q2 2025.

Fixed-Line and Broadband Services

The company provides pay TV services through IPTV technologies; network services, such as rental of facilities; other services; wholesale services, including interconnection services to users of other network providers; and digital services, such as entertainment, cloud, and security and financial services.

Fiber Optic Network

After successfully reaching the target of 29,000,000 homes passed in 2024, the company kept the momentum going. Over the past year, they expanded their fiber footprint to more than 2,000,000 additional homes passed. Fiber revenues grew +10.4% YoY in Q2 2025.

B2B Solutions

The company provides telecommunications solutions and IT support to various industries, such as retail, distribution and digital channel, manufacturing, services, financial institutions, government, etc. Digital services represent 21.2% of B2B revenue as of Q4 2024.

Financial Performance and Market Position

The company's financial performance shows consistent growth and a strong market presence. As of August 2025, Telefônica Brasil ADR market cap is $18.30 Billion. For the full year 2024, Telefônica Brasil's revenue was 55.85 billion, an increase of 7.19% compared to the previous year's 52.10 billion. Earnings were 5.55 billion, an increase of 10.31%.

For Q2 2025, net revenue expanded by +7.1% YoY, driven by strong performance in postpaid (+10.6% YoY) and fiber (+10.4% YoY) revenues. The company has committed to distribute to shareholders an amount equal to or greater than 100% of net income for each fiscal year from 2024 to 2026, demonstrating a strong focus on shareholder returns with a dividend yield of 3.34%.

Key Financial Metrics

• FY 2024 Performance: Revenue of R$55.85 billion (+7.19% YoY), Earnings of R$5.55 billion (+10.31% YoY)

• Q2 2025 Performance: Net Revenue expanded by +7.1% YoY (Postpaid +10.6%, Fiber +10.4%)

• Market Capitalization: $18.30 Billion (August 2025)

• Dividend Yield: 3.34%

• Commitment: Distribute ≥ 100% of net income (2024-2026)

Business Operations and Network Infrastructure

Telefônica Brasil operates extensive network infrastructure across Brazil. FTTH (Fiber to the Home) remains a key growth engine for Vivo, with access up 12.6% year over year. Net additions are also accelerating, with 201,000 new fiber customers added just last quarter. The company has successfully expanded its fiber footprint, passing over 2,000,000 additional homes in the past year, building on a target of 29,000,000 homes passed in 2024.

Product Portfolio and Market Strategy

Telefônica Brasil, operating under the Vivo brand, offers a comprehensive suite of telecommunications services. This includes:

- Mobile Telecommunications: The core of its business, with a leading position in the postpaid segment.

- Fixed-Line and Broadband Services: Including pay TV (IPTV), network services, and wholesale interconnection.

- Fiber Optic Network: Rapidly expanding its high-speed internet infrastructure.

- B2B Solutions: Tailored telecommunications and IT support for diverse industries.

The company markets and sells its solutions through multiple channels: own stores, dealers, retail and distribution networks, door-to-door sales, and outbound tele sales.

Future Growth Plans and Strategic Initiatives

Telefônica Brasil continues to focus on expanding its fiber network coverage and enhancing digital service offerings while maintaining its market leadership position. Strategic initiatives include the recent acquisition of CDPQ's stake in Fyre Brazil (pending regulatory approval), which is expected to consolidate leadership in fiber and unlock significant synergies. The company's growth strategy emphasizes postpaid and fiber services, which combined represent 73.4% of total service revenue and have shown strong year-over-year growth.

Telefônica Brasil represents a significant opportunity for investors seeking exposure to Brazil's growing telecommunications market, with the company demonstrating consistent revenue growth, strong market position, and commitment to shareholder returns through substantial dividend payouts.