Telefônica Brasil (VIVT3) investor relations material

Executive summary

• Achieved strong operational and financial performance, with 118.8 million accesses (+2.3% YoY), driven by mobile and fiber expansion, and reinforced strategic positioning as a digital hub with expanded AI, cloud, and OTT offerings.

• Mobile accesses reached 105.1 million (+2.6% YoY), postpaid accesses up 6.9% YoY, and ARPU at R$53.9 (+0.8% YoY); fiber homes connected rose 11.3% to 8.2 million, with footprint expanding to 32 million homes passed.

• Diversified ecosystem supported growth in connectivity, digital services, and electronics, with recurring revenues at 84.8% of service revenues.

• ESG initiatives advanced, including increased recycling, biodiversity projects, and recognition for governance, diversity, and top sector awards.

• Net income for 1H26 rose 17.9% to R$2.83 billion, with robust EBITDA margin supported by operational efficiency and digital transformation.

Financial highlights

• Total revenue increased 7.6% year-over-year in 2Q26, with mobile service revenues up 6.6% and fixed revenues up 6.0%.

• EBITDA grew 10.9% year-over-year to R$6,581 million, margin expanded to 41.8% (+1.3 p.p. YoY).

• Net income for 1H26 reached R$2.83 billion (+17.9% YoY); free cash flow for 1H26 was R$4.9 billion.

• Capex reached R$2.59 billion in 2Q26 (+6.1% YoY), focused on 5G and fiber expansion.

• Handsets and electronics segment revenue soared 27.8% YoY, highest in five years.

Outlook and guidance

• Commitment to distribute at least 100% of FY2026 net income to shareholders, with ongoing focus on network expansion, digital services growth, and disciplined capital allocation.

• Asset sales (copper and real estate) expected to accelerate in H2, potentially boosting net income.

• Over 75% of investments directed to mobile and fixed network infrastructure.