Telefônica Brasil S.A. (NYSE:VIV) Q2 2023 Earnings Conference Call July 26, 2023 9:00 AM ET

Company Participants

Joao Pedro Carneiro - IR Director

Christian Gebara - CEO

David Melcon - CFO and IR Officer

Conference Call Participants

Marco Nardini - XP

Marcelo Santos - JPMorgan

Andre Salles - UBS

Frederico Mendes - Bank of America

Vitor Tomita - Goldman Sachs

Carlos Sequeira - BTG Pactual

Operator

Good morning, ladies and gentlemen. Welcome to Vivo's Second Quarter 2023 Earnings Call. This conference is being recorded and the replay will be available at the Company's website at ri.telefonica.com.br. The presentation will also be available for download. This call is also available in Portuguese. [Operator Instructions] [Foreign Language]

We would like to inform you that all attendees will only be listening to the conference during the presentation. And then we'll start the question-and-answer session when further instructions will be provided.

Before proceeding, we would like to clarify that any statements that may be made during the conference call regarding the Company's business prospects, operational and financial projections and goals are the beliefs and assumptions of Vivo's Executive Board and the current information available to the Company.

These statements may involve risks and uncertainties as they relate to future events and therefore depends on circumstances, that may or may not occur. Investors should be aware of events related to the macroeconomic scenario, the industry and other factors, that could cause results to differ materially from those expressed in their respective forward looking statements.

Present at this conference, we have Mr. Christian Gebara, CEO of the Company; Mr. David Melcon, CFO and Investor Relations Officer, and Mr. Joao Pedro Carneiro, IR Director.

Now I will turn the conference over to Mr. Joao Pedro Carneiro, Investor Relations Director of Vivo. Mr. Carneiro, you may begin your conference.

Joao Pedro Carneiro

Morning, everyone, and welcome to our second quarter 2023 earnings call. The presentation will be divided in two parts. First, our CEO, Christian Gebara will comment on Vivo's operational and financial performance, followed by an update on the progress of our B2B and B2C Digital ecosystems and ESG initiatives. Then our CFO, David Melcon will walk us through our cost and CapEx evolution, net income, shareholder remuneration, and free cash flow generation.

Christian, I hand it over to you.

Christian Gebara

Thank you, Joao. Good morning and thank you for participating in our earning call.

We delivered a very strong result in the first like-for-like quarter after Oi Mobile's acquisition in April 2022. Total revenues grew by 7.6% year-over-year, well above inflation, mainly driven by the Mobile Oi service revenue that was up 10.4%. This outstanding performance is a result of our best-in-class value proposition in mobile and fiber, which translates to an expansion of postpaid access by 4.8% year-over-year, and homes connected by FTTH by 15.1% in the same period.