VIV - Earnings call transcript Q2 2021 | Telefônica Brasil S.A.

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Operator

Good morning, ladies and gentlemen. At this time we would like to welcome everyone to the Telefonica Brasil Second Quarter of 2021 Earnings Conference Call. Today with us representing the management of Telefonica Brasil we have Mr. Christian Gebara, CEO of the company; Mr. David Melcon, CFO and Investor Relations Officer; and Mr. Director. IR Plaster, Luis

call a that with the can be there for There have company's After on are remarks site slide the will over, this facility replay internet be a the simultaneous also website. the the webcast presentation www.telefonica.com.br/ir. on the We accessed will Safe are Before Litigation time, me proceeding, Securities instructions be mention answer Harbor being be XXXX. will that that question At and statements made let the under given. of a forward-looking of Act session. further [Operator Reform on Instructions]

are Forward-looking and information on statements and available. based beliefs the company's currently assumptions management on

general may not economic and are future occur company's Investors future. industry future statements and from those and in such assumptions conditions, They they affect guarantees other expressed Forward-looking to materially or conditions involve results also events could operating differ risks, understand circumstances uncertainties not in should statements. that factors of the could performance. on therefore the results cause to relate and forward-looking depend because may that

turn I your to Investor Plaster, conference Luis may Telefonica call Plaster, Director conference of call. Now, Mr. Relations Brasil. begin over Mr. the will you

Luis Plaster

second to the two morning you. and Thank for XXXX. Brasil's call parts. of welcome everyone call earnings the will Good be in quarter Today Telefonica divided

you digital give Christian and shareholder and will ESG flow presents our operating our CapEx information Vivo's the David structure, will well cost Gebara, and Melcon, as ecosystem cash First, figures, highlights. CEO, main regarding remuneration. financial as free and CFO, our Then more

to over Christian. it hand I Now,

Christian Gebara

million, the marked a XX.X% total profits. with first revenues taking fixed, X of of In and including and since homes well million a activation, At On Slide up total is and more end access an connected XXXX. quarter to mobile which growing customer revenues, XXX,XXX for you million, we X.X% and positive quarter XX the core second this highest call. accelerate we X.X% also to up evolution with a Plaster. XXXX. impressive access second In as quarter X, XX than of than X.X% XX fiber, continued profit XXXX, quarter had million are revenues million to Total additions X% earnings EBITDA the now more Thank increasing of that everyone base already of drivers respectively. year-over-year. you, the mobile Good totaled postpaid FTTH revenues of X.X% reached billion net our mobile XX.X% representing XX% XXXX. total. to billion and have thank grew morning FTTH, we services were mobile, the the as jumping R$X.X by net the showed access XX.X% and the and posted a year-over-year, was margin level XX.X% of R$X.X acquisition, close with year-over-year main joining net

registered source As the interest basis an of a for billion Court far contributions, we R$X.X capital Furthermore, so XX deduct months. be PIS/COFINS Supreme will this of to from the for gain to we year, for XX due next in shareholder X.X% last which decision months. tax additional into we the estimate deliberated remuneration, ICMS the cash translated yield on of R$X.X dividend an billion which extraordinary of

of forward. momentum digital pace high-speed are clearly The Moving to and mobile escalating the driving for complete set continues offering they the BXC both for growing that is how and combine next it core Vivo X.X% and if and and slide. products connectivity service fixed, going year-over-year BXB for our a to to businesses customers. force

our lifetime revamped churn, relationship to in Ultimately, company revenue improved higher and demands strengthen top-line also As are we meet lower recurrency and engagement, this improves, consequently our customers' growth them. the with transforming our value. results

story, convinced the equity Our we short-term of can core unlocked value medium-term. businesses that the to are and represent be the chapter Vivo's a in in new

the up resulted grew mobile quarter in to year-over-year. when of the territory returned up temporary which confinement Slide X% we year-over-year. positive the Total encouraging see on sales trends services second With Handset X.X% the measures another up, impacts year-over-year for picking X. the quarter economy rest recover quarter-over-quarter that open negatively X.X%. XX.X% performance reassuring lower and applied continue and wireless year. our optimistic revenues revenue The increasing postpaid trends activity delivered to Turning now growing comparison. are commercial April Prepaid in in to month, revenues XXXX about X.X% of also stores with

Moving on the Oi's should mobile regulatory quick to We are and accordingly. have advancing end more assets, necessarily the of around of news year. right approvals hand the slide, update a the concrete the side of bottom the acquisition anti-trust

We are a mobile an in improved outcome and will confident the overall sustainable in more for experience. customer investments be that resulting innovation environment infrastructure and network

We will informed about progress. their keep you relative

of XXXX. customers the X, services our grew quarter XX has in million, end second of XXX increased with million consolidate quality as is and XX segment the than April X.X%. million of allowing XXXX, second to mobile more postpaid has year-over-year. of quarter At that Slide mobile brings million that what growth closer the XXXX, us nearly we leadership Prepaid, X.X% the market access, X.X% share XX.X customers a had in of our network and to Vivo's XX% Turning

side churn, loyal. being the not customers previous increasingly second only trends These portability, it's true seen provider, On the X.X you higher XXXX. our times Vivo similar right-hand the was level enhanced of choosing customer that X.X%. they And see as quarter. connectivity in that migrations by Postpaid repeated are record are quarter than more elevated can is their and but position

and XX.X% expansion proud bundles to ongoing OTT activations. advancing by a core XX.X% new XX.X% the our broadband with revenues present FTTH given FTTx fixed were growth year-over-year the for we impressive ramp ARPU services. revenues sales are to XX.X%, digital revenues, and of Turning of year-over-year, strong enhanced an high-speed of up with demand up increases, Accordingly with see was promising core driven to and fixed last continue evolution revenue saw that are is a we expect effectively this continue. rising recovering, and digits revenues year-over-year. to growing data double trend This invest footprint, XX.X% revenues are IPTV All all, significant that to again. in Like up are we year-over-year. we starting fiber companies ICT indicator quarter,

an means the the twice Currently year-over-year, half Telefónica XXX,XXX is we had to rollout Moving color to network running, applications and taking homes-passed passed and of FTTH wide. our fiber million we that's fiber to Fibra This we’re both just partnership at the we quarter XXX,XXX to quarter of These of Slide fiber consolidate that of our reaching X, the of fiber homes the XXXX. us strategy results our FTTH second been X.X fiber million than FiBrasil, second more this will seeing accelerate XX.X elevated a Vivo’s up allow less posted and consistently the net footprint with net in CDPQ, will created homes year. grew of as quarter, We'll end initiatives existing deploy our our two Vivo while second rest expanding and presence, connected on the number over ago and additions. over new focus in neutral available to our times out number of more second fiber in cities. This Infra leadership. connecting years more on is is XXXX. give ads, close X.X cities On X, year volume national in million. and team continue customers In by up four almost during Slide XXX

the for Vivo, be X.X We across over positive to and remunerating than taking will greenfield is passed X.X to come, from and of FiBrasil proceeds and will million brownfield on commercial in network. start impact and years flow have cash That will now, fiber the in targets. manage four expected customer all The FiBrasil more Vivo's both reach will activities passed million the a conditioned XX use cities service to homes its homes to carve-outs from while with transaction pre-established cities. years, Brazil.

strategy. the to proceeds to would see we improvement fund the its adapting connectivity. of deployment ever-demanding can part it direct you to how will been have like go to FiBrasil in I Additionally, add,

Due increasingly to value Today or around bundling our decrease of that above XX% we XX% FTTH contribution split able ongoing the FTTH the average digital per the have XXX growth high-speed services, reliable second speed XXX broadband we of ARPU of extent by megabits churn in and in the our broadband skyrocketed. are customers. high our of megabits mix XXX customers. to XXXX fiber year, equal meaning increase third this new is the in focus from second last The customers, our went of XXXX. speed average to speed often the growth to an had attracting are Over improve growth. quarter to quarter, megabits, with of By

we several the reach XX, the showed a of deepen allow Slide play objective us to of role with has in relationships progress our this customers. Vivo the fronts. to listed and key our build left-hand to set a digital unique enablers of side slide of that ecosystem Moving a significant on

in digital the portfolio already services Manage offer Vivo demands. we each of format of All needs. a and financial in seeing Pay, digital our escalate, are federal our up accessible points, at customers’ all price relevance ramped life Vivo Through

for healthcare become and Vida consultations starts Our approach, health mindfulness increasingly will wellness segment. off the our a this along with for home and marketplace value platform, Shopping is solutions needs benchmark tech-related and office gaining entire telemedicine V, Vivo, chain. a and and evolve will awareness

beyond and international lives. that enhance suppliers a size and expand fiber Finally, digital All become we offer are allow home-related in Vivo like digitals themselves national with services and path Brazil. putting initiatives continental leading champion together on putting leading these from a to connectivity equipment on our will and connectivity, leverage to our customers’ platforms to automation market the us reinforce traditional

improve Next overall that to I about in journey. is as talk customer digital Vivo's XX, increasing relevance like they are would one the Slide channels

a million app. for XX% relationship it's for the Meu Vivo the five the a And E-care main as fosters Our to contacts of users interactions present XX approximately platform, enhance made Meu lever through that carry future per only our month revenues. our platform channel, also Moreover, isn't is are our unique customers. but Vivo, choice of result and out

there. and are around upgrades of digital sales, originated XX% XX% app more third-party than of sales already traffic, mobile fact, XX% and of In marketplace

score these the our promoter Vivo those can that industry. experience. our right, And net choose of and higher the are you support, see WhatsApp are customer its stores, technicians, making for attest that massive difference. People On figures than the for also efforts

the slide, digital mobile XXX% you bottom plan grew Revenues sales multilayered. FTTH of that Lastly, XX.X% and is prepaid ramp digital than Easy, can see more from the rose over online XX.X%. channels top-up on up digital Vivo of the year-over-year. doubled

comment on initiatives as positive most generating to impact like Slide a would to Vivo's recent all Turning to expand, XX. stakeholders. I for they continue ESG

On aiming more the environmental the economy by front, Recycle stage, than with equipment's TV million to accelerate and Vivo X.X with new refurbished a of broadband year. the end simple reached the

in addition, XX,XXX power plants. consumption renewable power program also terms in XXXXX will megawatts In and ISO the In ensures the project. Merco's the from governance in companies expanded and were sphere, of its security governance. most generation international through units rated distributed quarter responsible Vivo the management during of we around position responsibility we alignment the XXX% coming practices. the the obtained Vivo in of XX best be first Also, XX distinct XXth sources. XXXX It based with top to for generation the by average process Segura, energy certificate ranking on able of That's Brazil clean which the vulnerability pandemic position the digital

society. turn Women recognized enhance to us the edition the as CFO, and preservation also environmental fifth the to of the over through sector. were call Companies David, having initiatives financial reputation Work in the for now contribute of of designed wellbeing the the to we These to the Finally, highlights. XXXX are take best our efficiency, Best to I

David Melcon

continues a services the Thank evolving and trends, pure changing but our positive to to cost, mix. cost increased our that and service as digital base mix revenue of not BXB both Vivo in into hub, In telco connectivity, products catalysts BXB customers. you, XX% only beyond cost revenue Slide growth, total growth, is customer and XX% BXC Christian, accelerate year-over-year and good is for second everyone. XX, a cost offering and for highlight quarter. evolution from services for which This demand the both supporting and transformation we BXC sold, of The for base and also morning, go company digital content enhancing and underpin the handset are sales. accounted in goods recover and

inflation. efforts from of reduced year-over-year, the operating X.X%, discipline, hand, from up, important cost out continue while benefited total our our to quarter, that X.X% X.X% that initiatives It's ramp all, although by to growth of handsets, digitalization costs. model this and XX% also reduced increased non-quality cost On improve capture operation contributing would have eliminating excluding cost when efficiencies All to demonstrating other point OpEx revenue to offset supporting our cost acceleration. represent it total in

Moving to Slide XX.

to allocation models. result by and launched this Network-as-a-Service in this on sense, returns CapEx to impact. Our reaching pandemic time our Towers, year our is mobile network, cost Brazil. and The a summing neutral space, a to CapEx initiatives, of We American a improve XX% and XX of fiber In the cities. expansion recently leveraging CapEx due constantly low with of model focus to the Brazilian base BRLX.X a this second Vivo new fiber the up market year transformation the in higher decrease Phoenix in mainly to and FiBrasil, pioneer alternative and comparison and XX% which upgrade strive quarter increased on billion, adopting the year-over-year, with XXXX also related optimize in to growth reduce is infrastructure

the will cities. franchise with reach XX Fibra Terra Additionally, another of expansion

TIM sharing also has updates. agreement RAN with relevant Our

two initiative the usage optimize conclude covered unlocking cities. technology First, in expansion each also reduce improve concluded, with and coverage should XXX opportunity expenses, XG network an We new operator. consolidation X,XXX quality to cities pilot in spectrum for about our this is delivering months,

the Lastly, the to completed according be the XG is of expected to the end switch-off and rollout year. this plan, advancing is by

Turning to Slide XX.

June reaching this Our year quarter similar BRLX.X reported XX% of net more grew income amount XXXX. capital us as on year-over-year, a billion, for interest second of allowing to than the declare

one at in fact, the X.X%, stand accumulated last dividend the the of in yield industry. In XX highest the months

increased our be Oi's the XXXX, position first to on Slide made fund further assets. we a mobile the now can Court Supreme tranche flow October gross XX the the cash as to first exclusion BRLX.X of contribution, half our registered was will the and XX%, we reaching new profit, can of decreased will due focus of of the year, from due amount reinforced decision move which of Regarding as payment months. basis the last sheet. In To paid in to source BRLX.X of XXXX schedule flow of XXXX end billion BRLX.X payments this mainly growth of in billion calculation billion for we gain That Q&A. that of of in for incremental the debt related higher XX now acquisition the was the second to the position BRLX.X billion Since on year-over-year, growth June said, mainly quarter, confirms net July X. billion, the generated, PIS/COFINS a ICMS billion cash become reduced free the while of generation cash the period. earning tax BRLX.X to an solid as the the next of the revenue in to placing R$X.X explained the of cash Vivo's by well Free on a conclude presentation, company move CapEx, us And balance taxes of XX.

Operator

Thank Our first comes Olmos, from you. question Leonardo [Operator Instructions] UBS.

Leonardo Olmos

did, a you the have is still questions strategy. your prices few mobile negative. as first the theme I pricing of everyone. XXXX morning, in Good Hello. half ARPU the Even in increased all of though competitors

my if that high should net the negative mobile same strong And in net of of the question for level maybe comparing last the additions that discuss months. you topic, is – is in cause forward? my growth ARPU? of following the what a more especially Could net this? XX the saw the trigger number going last we a you. So And what first is then additions, additions the revenue reason of is Thank question part

Christian Gebara

question, you repeat second the can please? Leo,

Leonardo Olmos

Yes.

caused why trying a number – last second net the large that the is The months? that it by the is XX ARPU, question additions ARPU had mobile in the if understand had growth, to of is negative

Christian Gebara

ARPU, it got. mix, This is one you. the The changed. This yes, I Thank Christian answering.

So the lot instance. ARPU, we a – postpaid from the talk if adds lower hybrid about for that No, you talk ARPU. of about had coming let's net has

they see government for course, the of explaining So the the that postpaid, revenue the prepaid. while, aid, the So ARPU increasing, our what both was now one is ARPU in were So that that reason, and quarter here customer first in and changes for difference, giving of the increasing months is then important they we prepaid, the total stopped also postpaid is in that this also that's the this no? and the reason no? last is a year, base In that. main no, impacting the our

mix, was So to hybrid a of to we migration, of little when for it that the government, in got total more levels said, used accelerated recurrency the going have also and recurrency. cease you the of And there the bit the that adds net then acceleration of post. postpaid, impacting aid the with was of being the down. Customers before. And saw we ARPU – lot more it's with prepaid back saw as a the

So we revenue. are in total of the revenues and it's the also growth, and confident growing

So behind ARPU main that's the reasons evolution. the

Leonardo Olmos

and revenue should in maybe the mobile my growth third Okay. Yes, a expect then question, quarter fourth we last part stronger of quarter?

Christian Gebara

good a month. the positive the doing The of June but commercially. good We we are we mobile. economy about and recovering, a is was guidance, evolution don't give And are performance

the this Now last the it's of quarter, quarter. month of

are the trend. positive we about So

Leonardo Olmos

Thank you Christian. much. clear, Very very

Operator

Vitor comes question Sachs. from Goldman Tomita, next Our

Vitor Tomita

Two our side. questions all our Hello. thanks and Good for on morning, question. taking

And which and initiative most could following BXB on the in if pandemic your comment impact see big Thank the the first see could gain as see one if to of for the and keep having you. should key as applications? current on second in one the that data promising is, going digital The do state forward? of mind should term, trends you elaborate you relevance base most is, how business we you the we ecosystem BXB near and long-term customer the on you for potential

Christian Gebara

verticals. and of you, it's In ecosystem, a Vitor. Thank digital the sectors combination

Now let's behind. little – bit it's a

the to in we have, I in it previous presentation, we go than the you described I once If it the the and we think attributes believe that assets we think and call. mentioned more

I think ecosystem of and other talk with strength any capabilities, other the with the in be with the don't to channels, ourselves Terra a difficult, with big also of top-three users about number players a it's views for number the the us already I have – more comparing existence when Brazil with portal, platform. companies one you our to other that more brand, also not telecom, digital the plus want that consider it's comparing in that of we the and digital in ecosystem, access, any stores the And platform country. of see with with in the that's help data ourselves and ourselves capability connected the to and online of users

betting areas. So in we having all this, some are

this, more don't Again, been I as because one everyone capabilities because in we that bit but believe financial little have we that this see for have a leverage trying in said service we to on crowded environment others be that that. able, we lend money could Now do to one have every discussion is instance, we have, before, that then of some about the is we is access they don't digital customers, any that digital top-up believe channels. information I we month wallet don't or to maybe wallet. also interest banks, prepaid that to are have they a have already the customers for in our Vivo Money that capabilities using

leading financial buy one. We Teladoc, same other of in company using is app second that the the not our why digital world. the and is one. the services? one So in partnership telemedicine announced service So the same Health wellness to and already channel with

able plan. be health to again, to are going partners, and be a I'm a relevant health plans real not other not platform. we're And that attract believe with because So competing health we

to We players We target again, entertainment. is health don't of is access on customers a market. to there the may new that in as have are this fourth is education. that to it's health most the giving something area And the well. there private out The largest have announce already Then plan. of of possibility soon one the

doing are lot we So already. a

that we entertainment, Here, activations, new also mobile through the ones, saying Selfie our Disney+ and with and plus through they customers, Vivo are entertainment big very that be soon. our is XX% partnering this fiber we Netflix distributing fiber. plans announcing in We're new buy we're that of presentation are or or could others

to The things products is also a only selling also our we but and believe want that then once services Shopping, are the home; could not We other install And installing we home. more we one Vivo our marketplace, others. marketplace. and automated fiber, connected in be selling products, the services of

deploying we only the the stores, our not to able to are all accessories related in all automated home there. sell devices So and having that

marketplace charge our for and help We we're to to it, going and that. the selling that are team also customers team, installation we installing are in helping also

partnership digital center in technical support, we a one So or in got also is that's why for company specialized that channels. call

deploying customers to marketplace also partnership loyalty of gives that and to are Dotz their use We also points platform.

So combination. it's a

business, they're the them, if believe that only today customer, that in have So having then number a the they could the measured lifetime engagement, combining we very being that's of could of all value increase Vivo have being customers. we recoveries with and lower centered all acquisition by already This important. the increase because cost customer new we customer,

to to to And case, be our going able we're plus lower churn. KPIs. customer our increase cost going it's our sell services. because because measured many and other reduce able we're customers other are We with our bring we to be by acquisition ARPU And service to are a in going marginal,

it's win-win think the Vivo. a situation in case I of So

maybe second. got Vitor, have a question, you second If one, the first and I the

Vitor Tomita

Sure.

So...

Christian Gebara

are numbers core and number BXB, by fixed to that go to we revenues, and have sorry. saw a okay, growth And growth data, ICT, our FTTH, in BXC that of okay the specifically we very BXB, if show BXB. driven – they we BXB, the both that important in both, of mobile the you in XX.X%.

this with in for of others mobile cloud, that many are about is And the BRLXXX also in many are it's see acquisition and more LTE Now prepared solutions, type verticals and figure, of the for group than also that is million, we a other What trend for demand And the recovery through quarter, right connectivity of shows positive developing getting private now equipment BXB. cybersecurity, this and talking for is we Telefonica growing. economy, the also demand solutions we Tech. some we sell the Telefonica services see to IoT, also in the type increasing.

positive trends. about we are BXB So

Vitor Tomita

very much. you Thank Perfect.

Operator

Please JPMorgan. Santos, Marcelo from comes question proceed. next Our

Marcelo Santos

My Thanks is for questions. first taking regarding my environment. fixed question morning. Good the broadband

one. question bit how what line, a quarter comment see some you established previous environment fiber the game ultra-speed coming players And which and their fiber? the please And fixed about this vehicles? is to could the you think going players Brazilian in deploying you on so on do many with revenues core also do If the the to market the versus be end is the second saw deceleration competitive

fixed you. forward? on how this trends do the you revenues So and comment Thank on please core the see could going you

Christian Gebara

it's Hi, again. Christian Marcelo’s,

the and our talk bit then others. a I'll talk performance, let's first, So more about little about

have the to And had So million like home – than now XXXX. to ago, we more the some to than we the more additional said with million end fiber we home to goal, that. we get pass. the of years XX objective, that investment with planning XX Brazil. we deploy by We year pass are were end was in And

bet be neutral strategy leading also the the the in – Telefonica virtual the our be one. sorry, Infra. network lately, closed CDPQ the to first deal in create to proved company right network our So meantime, to fiber and Also, we Brazil with neutral and in fiber

deploy to and this we home of have out pass. the brownfield adding to second X.X already objective in more year four from objective passed, it's of get semester Vivo carved to running, than Now and the to years we not only up home and the XXX,XXX X.X that million

share companies what also see everyone see we smaller now small even and being their and were to players see we right, now or we deploying also competitors proof acquiring network. was we started neutral So that increase their that – first. trying other – is That we

why we the connected. pass and in So that's in home leadership home have

the CDPQ, that to of deploy has we created financial now also that standard are the in solution, find provider we forward, also fiber of the some a and for scale that vehicle the expertise one and our have us fiber M&A. the Europe. discipline fiscal again, we the If because, leading with ones Going with that possible FiBrasil, we with that's that discipline allow in that we largest require, if the is technical pricing look standard to the group anyone the right

is So of buy really very very, see with most some what asked; them our are is you network. a What we standpoint. players we in cities. reasonable overlap financial They just that small in don't want to

Some some of them start cities, in neighborhood. in to necessarily overlap the not overlap same the

has from the there being Vivo strongest it and course is the in players and assets leadership speeds, room apart give and the winner, brand And when download, us be of customer. when allow and face we us competition, upload gives that to what be ownership that very technical high network the that one, happens, to same the for with with that I place. differentiation, Of think proves many number unique the to no the the proves be to

We also content. have the TV

more have still XX% than still competitors of don't these IPTV. this – customers with alternative. Most buy Some

before. we physical digital for said We the stores, And have the have I channels have also agreements the services. that we digital

share finally, other when winner So market when the be the and us for to good IPTV, be more in before, that are so leading others, many the market we a the I I the doesn't many bit I our with we've leading Netflix, the rational. to convergence, with the to in blend so a in with need unique the market to announced the the buy very many play position face-to-face. number in that players think the cities with as one want we FTTH customer we And very partnerships share have combined and Disney+, said in postpaid see mobile offers should soon. little the room give don't fiber competing that market. Again, one competitive

Can did second I sorry, I first Regarding the answer Marcelo, second go to the one? – question. one? the

Marcelo Santos

Yes. Very, Thank you. comprehensive. very

Christian Gebara

Okay.

you core, okay? So if almost of go if there fixed BXB. very first represents okay? to revenue, about mobile, was seasonal you our asked, has slight That revenues, So good revenue. XX% you the by the as driven Then core and a the is point. thing That's the the consider fixed core question. that's BXB change, is the previous a that lot

that you is growing see a FTTH, growing, if growing core is growing almost driver It Sometimes, the here very is a related equipment little a XX%. you to revenues, deal. lot thing is almost highlight The to bit we And that is BXB closed change I ICT data of evolution. double-digit. also the is in XX%. There's it's growing, have that this good big IPTV, one and could is a in quarter. being sales the focus When IPTV business think is of deal fixed

when country quarter, I in we're number, a see very it in billion player our our talking add in That's and a in revenues, If unique IPTV. that position FTTH. Latin in the and IPTV, R$X the already strong of is revenue FTTH plus billion America. leading to if you very this in as FTTH annualize we almost R$X.X So than more us puts that considering

a a and to we're just fixed So course business. core revenues give the have small of total already coming a for fixed of from the change base now, future revenues evolution important positive going what the revenues, trend growth the of in very of from us

Marcelo Santos

Thank much. Perfect. you you. very Thank

Operator

comes next Bank America. Our from Fred question of Mendes,

Fred Mendes

and everyone the morning, call. as have two Good for well. Hey. I thanks questions

that the at look understand first are a is obviously I a be net really a there doing, strong. adds of right, Leo's net was service in I question. at the follow-up when do the different think from what But of revenue, change the and first look in even I then look than I bit competition, adds the mobile mobile dynamics would I we the The me, mix. revenue. service look and you're terms at your they expecting all for one

your So seeing you and offers you giving your and competition is combine you that's Thank mobile you as the a fee, core as and of follow-up service and more operative I'm – then as little discounts on for a bit just second expand you. maybe are or one, what FTTH first wondering your maybe a if question are the some service, revenue? your mobile impacting

Christian Gebara

is reason. Fred. second question the not the Hi, No,

I giving not a the lot We what discount, are don't is of and think impacting is ARPU. that

But have, hybrid. to for for of coming increased price. the I in consider, that inflation that next think we part the see is of asked ARPU of one And we very for market. of important much a to the what quarters, That have for competitive course postpaid us if June. more increase you and seeing don't used price from the allow are course the revenues I the BXC we not could is – the instance, before, most questions evolution

next of captured in the the most So quarter. be impact would

confident good I'm price attracting to ability Again, keep for Vivo. lowering about to our are attract more not customers we customers. So very

postpaid, not are of doing of we from free, lot prepaid, if also lowest not price, things some a price give you far the different in our for we that. that. see are with and the competitors. from And We And hybrid don't

the are in migrate lots hybrid new doing and So attracting able we And of need to going continue we from and as customers. many trend. to to positive we've for been good prepaid, be plan. years, to are the confident the We're so We to these prepaid we to just to customers hybrid migration right postpaid. from doing find a right that keep and customers,

wrong and not to be expect the to a going Now to segment. we be very lot Otherwise, difficult market migrate. it's what what's of to up rational data giving is the important,

for digital to hybrid So data offering be quarter. ARPU be customers. the very also the a increase migrate to have we're low, with to of some combine the to going it postpaid. the we doing, level the what need able volume the combine Moreover, with lowest as able one for And churn postpaid our differential drive FTTH we're and right last are hybrid to the also to data prepaid to service of to we the of course, is And of going to well. of the churn

going capture grow. positive continue and able are we to to that So to be revenues we're

Fred Mendes

of is you dynamics And for of there homes your the related Thank to pass connect. just Everyone – there you. Obviously, you, and increase trying just understand lot network. to this I the is the the of lot But demand players in if Christian. to expanding deployment. a a CapEx, FTTH significant one are Thank quarter. or may, homes a moving that. clear. Obviously, was Very more were significantly

this the if in So it basically in same? or seeing we do you. even the are Thank they cost an or remain increase labor to

Christian Gebara

it's the No, the and It were especially more quarter in quarter, stores about with because more was closed, their fiber second were installing someone year. tough of a having last people homes. concerned comparison

and that. especially first is was technology after very key recover it for that best rapidly, we the connection, Although and fiber we a and because difficult, upload month market were the could services in people for good have asking the the download,

I getting fiber. deploying think in scale we're

more homes have increasing. that cost are we is pass. home – also passed unit a course not more it's have of So – And we we

more the have more. more, to We opportunity sell selling

was by second you go expected think it much gross is net impacting Our to core before. if adds CapEx. much very we now quarter adds, It's also higher and higher it's the that I net But in quarter. what than adds the than is this

this is the with in quarter second pandemic. I first impact the CapEx the of XXXX think a of months the tough much a of more quarter comparison

CapEx, that's And base that have. growing are in a good to are we reducing confident it. Going forward, in and and optimistic we the better we're churn, about the going we payback that customer but – we're keep requires very of fiber, good trend than to in going trend a to used with be

Fred Mendes

Perfect. Very Christian. clear. Thank you,

Operator

question concludes and… This the

Christian Gebara

Okay.

thank second Vivo's call. quarter in you, results So for everyone, participating

said, economy's unique the leverage position optimistic I in our about on are our performance we forward, Brazil. in As recovery going and

available for team any additional Thank you all. question As have. our you, always, now that may is

Operator

Mr. Christian, proceed with your closing remarks.

Christian Gebara

Sorry, I thought was but – will I them, already repeat. I made

you, our second call. everyone, So results for quarter thank in participating Vivo

the our Brazil. I position unique no, on recovery we As leveraging Vivo's and in are forward, said, optimistic performance about in economy's going

you for our you all for any Now question available Thank team as have. may always, additional is participating.

Operator

Thank you. conference today’s XXXX Brasil’s results Telefonica This second concludes quarter call.

You time. at may good this disconnect lines Have a your day.

Telefônica Brasil (VIV) 29 Jul 212021 Q2 Earnings call transcript