Company Reports

Telefonica Brasil (Vivo) posted modestly accelerating growth during the second quarter, with revenue up 7.6% year over year. Wireless service revenue increased 6.6%, equal to the average of the prior five quarters, while broadband revenue increased 11.2%, the fastest pace in two years.

We believe Telefonica Brasil (Vivo) is one of the strongest telecom carriers in Brazil, vying with America Movil to offer converged wireless and broadband services across much of the country. Consolidation has made the wireless industry much more attractive, but the market still faces several challenges, including a fragmented fixed-line industry, coupled with economic and political instability.

Telefonica Brasil's (Vivo) revenue increased 7.4% in the first quarter, reflecting modest acceleration driven by consistent growth in wireless services and broadband, and a jump in low-margin electronics sales. The EBITDA margin improved less than 1 percentage point from the prior year to 40.2%.

Telefonica Brasil (Vivo) grew revenue 7.1% during fourth-quarter 2025. Underlying trends were consistent with recent quarters, except for the prepaid wireless segment, which showed improved stability. The EBITDA margin improved less than 1 percentage point from the prior year to 42.9%.

We believe Telefonica Brasil (Vivo) is one of the strongest telecom carriers in Brazil, vying with America Movil to offer converged wireless and broadband services across much of the country. Consolidation has made the wireless industry much more attractive, but the market still faces several challenges, including a fragmented fixed-line industry, coupled with economic and political instability. We expect Vivo’s solid balance sheet to enable it to ride out any bumps along the way, but shareholder returns could suffer if competition or regulation turns more aggressive than we expect.

Revenue growth of 6.5% at Telefonica Brasil (Vivo) was consistent with recent quarters. Postpaid wireless and broadband customer additions were solid, but revenue per customer was on the weaker side, especially in broadband. The EBITDA margin was roughly flat year over year, excluding asset sales.

Telefonica Brasil (Vivo) delivered 7.1% year-over-year growth during the second quarter, with acceleration across the wireless and broadband segments. Recent price increases have provided a lift, and Vivo continues to add customers at a solid pace.

We believe Telefonica Brasil (Vivo) is one of the strongest telecom carriers in Brazil, vying with America Movil to offer converged wireless and broadband services across much of the country. Consolidation has made the wireless industry much more attractive, but the market still faces several challenges, including a fragmented fixed-line industry, coupled with economic and political instability. We expect Vivo’s solid balance sheet will enable it to ride out any bumps along the way, but shareholder returns could suffer if competition or regulation turns more aggressive than we expect.

Telefonica Brasil's, or Vivo's, first-quarter results mirrored those of its major Brazilian rivals. The postpaid business continued to grow strongly, but prepaid was very weak, pulling annual wireless service revenue growth to 6.5% compared with 8.4% in 2024. Broadband revenue increased nearly 10%.

We believe Telefonica Brasil (Vivo) is one of the strongest telecom carriers in Brazil, vying with America Movil to offer converged wireless and broadband services across much of the country. Consolidation has made the wireless industry much more attractive, but the market still faces several challenges, including a fragmented fixed-line industry, coupled with economic and political instability. We expect Vivo’s solid balance sheet will enable it to ride out any bumps along the way, but shareholder returns could suffer if competition or regulation turns more aggressive than we expect.

Telefonica Brasil (Vivo) posted strong customer growth during the fourth quarter, adding 891,000 net postpaid phone customers. However, revenue per customer was disappointing, pulling wireless service revenue growth down to about 7% year over year from 9% over the prior three quarters.

Telefonica Brasil, or Vivo, delivered solid third-quarter results, with revenue growing 7.1% year over year. Cost control efforts overcame a one-time benefit to bad debt expense a year ago and growth in low-margin value-added services, like music streaming, to hold EBITDA margins stable at 42%.

We believe Telefonica Brasil (Vivo) is one of the strongest telecom carriers in Brazil, vying with America Movil to offer converged wireless and fixed-line services across much of the country. Recent consolidation has made the wireless industry much more attractive, but the market still faces several challenges, including a legacy of low wireless pricing and a fragmented fixed-line industry, coupled with economic and political instability. We expect Vivo’s performance will continue to improve over the next couple of years and that its solid balance sheet should enable it to ride out any bumps along the way.

Telefonica Brasil's (Vivo) second-quarter results were generally in line with our expectations, and we aren't changing our $13 per ADR fair value estimate. The weakening Brazilian real has weighed on the ADRs, but we expect wireless carriers will be able to increase prices at or above local inflation over time as they increasingly prioritize returns on capital over market share. In the meantime, Vivo continues to generate steady cash flow, enabling it to return capital to shareholders and maintain a very strong balance sheet.

We believe Telefonica Brasil (Vivo) is one of the strongest telecom carriers in Brazil, vying with America Movil to offer converged wireless and fixed-line services across much of the country. Recent consolidation has made the wireless industry much more attractive, but the market still faces several challenges, including a legacy of low wireless pricing and a fragmented fixed-line industry, coupled with economic and political instability. We expect Vivo’s performance will continue to improve over the next couple of years and that its solid balance sheet should enable it to ride out any bumps along the way.

Telefonica Brasil, known as Vivo, continues to deliver solid results as it roughly maintains wireless market share while increasing revenue per customer and expanding its broadband business in a highly competitive market. Our fair value estimate remains $14 per ADR, and we believe the shares are attractive.

Telefonica Brasil (Vivo) delivered solid fourth-quarter results as wireless market consolidation and the strength of the firm's assets drove revenue growth and margin expansion. We believe Vivo remains well positioned in Brazil's telecom market. After updating our model, we are increasing our fair value estimate to $14 per ADR from $13.

We believe Telefonica Brasil (Vivo) is one of the strongest telecom carriers in Brazil, vying with America Movil to offer converged wireless and fixed-line services across much of the country. Recent consolidation has made the wireless industry much more attractive, but the market still faces several challenges, including a legacy of low wireless pricing and a fragmented fixed-line industry, coupled with economic and political instability. We expect Vivo’s performance will continue to improve over the next couple of years and that a solid balance sheet should enable it to ride out any bumps along the way.

Telefonica Brasil (Vivo) continues to reap the benefits from recent wireless market consolidation, with solid revenue growth and margin expansion. Efforts to expand the fiber network have also driven improving broadband customer growth. We believe Vivo remains well-positioned in the Brazilian telecom market. We are maintaining our fair value estimate at $13 per ADR and we believe the shares remain undervalued.

We believe Telefonica Brasil (Vivo) is one of the strongest telecom carriers in Brazil, vying with America Movil to offer converged wireless and fixed-line services across much of the country. Recent consolidation has made the wireless industry much more attractive, with only three major carriers left in the country. However, the market still faces several challenges, including a legacy of low wireless pricing, and a fragmented fixed-line industry, coupled with economic and political instability. While results will likely remain volatile, we expect Vivo’s performance will generally improve over the next couple of years.