VIV Rides Asset Monetization and Light Plans to Double-Digit EBITDA Growth
Telefônica Brasil delivers strongest EBITDA growth in 11 quarters, introduces Vivo Lite to tap prepaid customers, and accelerates copper and real estate sales.
VIV · Earnings Call · 2026-07-28
Telefônica Brasil (VIV) reported Q2 2026 results that highlight a rare combination of operational momentum, strategic innovation, and capital redeployment. The headline is the 10.9% year-over-year EBITDA growth — the fastest in 11 quarters — but the deeper story is a company deliberately reshaping its revenue mix and monetizing legacy assets to fund an aggressive pivot into new businesses and prepaid-friendly offers.
EBITDA Breakout and Cost Discipline
“As a result, EBITDA grew double-digit for the first time in 11 quarters.” — Rodrigo Rossi Monari, CFO · 2026-07-28 This feat is driven by total costs increasing just 5.3% against 7.6% revenue growth, with personnel expenses growing below inflation. The Bad debt line remained flat year-over-year, a testament to disciplined credit practices. The company is also inching closer to its concession-to-authorization migration goals, generating BRL 202 million from copper sales in the quarter, though the full potential is still ahead.Light Plans and the Prepaid Push
Perhaps the most company-unique move is the launch of light plans (Vivo Lite) — a segmented product that targets prepaid customers who don't qualify for traditional hybrid plans due to credit scoring. CEO Christian Gebara explained: “The light plants, they are very segmented... What they allow us is to address customer segments that may not qualify for traditional hybrid plans.” — Christian Mauad Gebara, CEO · 2026-07-28 These plans, priced at BRL 30/month (annual) or BRL 45/month (monthly), are paid via credit card, eliminating bad-debt risk while guaranteeing annual recurrence. This timing is smart: prepaid is the most competitive segment, but VIV is using it as a funnel to migrate customers into more valuable postpaid relationships. The strategy seems to be working — prepaid returned to positive sequential net adds this quarter. This is a stark contrast to the credit card penetration trend in Brazil, which has been rising; VIV is leveraging this to turn high-risk prepaid users into low-risk, recurring payers. It's also a natural hedge against the inflation that has made prepaid ARPU stagnate.Monetizing the Past: Copper and Real Estate
The company is accelerating its asset-sales program. Management highlighted that copper sales jumped from BRL 86 million in Q1 to BRL 201.5 million in Q2, with plans to increase further. They also selected 47 properties, valued around BRL 600 million, for sale. Christian emphasized: “So going forward... the trend of the copper... is already up to BRL 201.5 million in the second quarter. And the trend is to go up in the third and the fourth quarter.” — Christian Mauad Gebara, CEO · 2026-07-28 This isn't just a cash-naturalization play; it also reduces maintenance costs on legacy copper infrastructure, freeing up resources for fiber and 5G expansion. This follows a consistent theme in prior quarters. In October 2025, the CFO noted, “So for the coming years, it's difficult to talk about any precise quarters. But the information that we also show in this presentation has to do with the current tenancy ratio that in Brazil, we believe is quite low.” — David Sanchez-Friera, Chief Financial Officer (CFO) · 2025-10-31 Now, the company is translating these structural opportunities into tangible cash.Convergence and New Businesses
VIV's growth isn't just about cost cuts. The convergence story remains core: Vivo Total reached 3.8 million customers, up 29.4% year-over-year. By bundling fiber, mobile, and digital services, VIV is reducing churn and increasing customer lifetime value. Handset and electronics sales soared 27.8% — the highest in five years — driving footfall to its 1,700 stores, which also boosts cross-selling of services. B2B digital services grew 14.9%, with cloud up 20.9%. While the sector grapples with tariff wars and supply-chain disruptions, VIV is insulated from those global themes. It's a rare emerging-market telecom that is growing revenue above inflation and expanding margins simultaneously.The free cash flow generation of BRL 4.9 billion in H1 and a net debt/EBITDA of 0.4x position VIV to fund future M&A in fiber — a theme echoed in earlier calls. As CEO stated in February 2026, “We're not giving guidance, but we are working on CapEx optimization when you consider CapEx over revenues.” — Christian Gebara, Chief Executive Officer (CEO) · 2026-02-23 That discipline is now paying off in the form of accelerated EBITDA and cash flow. In a world where many telcos are being squeezed by competition and inflation, VIV stands out for its ability to innovate, extract value from legacy assets, and create a more resilient revenue base. The question now is whether it can maintain this pace as it integrates acquisitions and navigates a still-fragmented fiber market.We are very driven by the EBITDA minus CapEx minus leases. And I think we have been able to prove that in all these different lines, the company has been able to drive up.