Telefonica Brasil (NYSE:VIV), which operates under the Vivo brand, reported second-quarter 2026 revenue growth above inflation, expanding profitability and cash generation as postpaid mobile, fiber and digital businesses contributed to results.
Total revenue rose 7.6% year over year, while EBITDA increased 10.9% to a margin of 41.8%, up 1.3 percentage points from a year earlier. Chief Executive Officer Christian Gebara said the results reflected the company’s commercial momentum, customer engagement and continued execution across connectivity and newer digital businesses.
Mobile, Fiber Drive Service Revenue Growth
Mobile service revenue increased 6.6% from the prior-year period, while fixed revenue rose 6%. Fiber-to-the-home revenue grew 10.7%. Vivo said mobile ARPU reached a record BRL 32.5, with postpaid churn holding at 1% despite recent price adjustments.
The company reported that its total mobile base increased 2.6% year over year. Postpaid customers rose 7.3% to 52.4 million, while machine-to-machine and dongle connections increased 6.1%. Postpaid net additions rose 14.1% from a year earlier.
Gebara said the competitive environment remained broadly similar to the previous quarter, though competition was more aggressive in some markets and segments. He characterized prepaid as particularly competitive but said Vivo’s strategy remains focused on migrating customers from prepaid to hybrid and postpaid plans while maintaining monetization discipline.
Vivo has also introduced segmented “Lite” plans aimed at prepaid users who may not qualify for conventional hybrid plans because of credit-scoring considerations. Gebara said the plans are paid through credit cards and are designed to reduce bad-debt exposure rather than cannibalize the company’s hybrid customer base.
“It is targeted to a different type of customer,” Gebara said of the Lite offering. He said the annual version provides recurring revenue while the monthly option is priced comparably to certain lower-tier hybrid offerings in the market.
In fiber, Vivo ended the quarter with 8.2 million accesses, up 11.3% year over year. Its footprint reached 32 million homes passed, while take-up increased to 25.6%. Fiber net additions were 213,000, up 6%, and fiber churn declined to a historical low of 1.4%.
The company’s converged Vivo Total offering reached 3.8 million customers, an increase of 29.4% from a year earlier. Gebara said convergence has supported both mobile and fixed growth, customer loyalty and the company’s ability to sell additional digital services.
Electronics and Digital Businesses Expand
Handset and electronics revenue surged 27.8% year over year, representing the segment’s strongest annual growth in five years, Vivo said. Gebara said the company’s stores help bring customers into its commercial ecosystem, where it can sell both services and higher-margin accessories and other electronics alongside smartphones.
On a trailing 12-month basis, business-to-consumer revenue reached BRL 46.6 billion, rising 6.8%. New-business revenue increased 33.6%, with consumer electronics revenue up 63.8%, health and wellness revenue up 58.2%, video and music over-the-top services up 25.7%, and financial services revenue up 12.8%.
These new businesses accounted for 3.4% of total revenue. Vivo also highlighted partnerships involving Gemini AI, Google Cloud Storage and YouTube Premium as part of its broader digital-services strategy.
Business-to-business revenue totaled BRL 13.9 billion over the last 12 months, an increase of 9.2%. Digital B2B revenue grew 14.9%, led by cloud services, which increased 20.9%, and digital solutions, which rose 20.2%.
Costs, Capital Spending and Asset Sales
Chief Financial Officer Rodrigo Monari said total costs increased 5.3% year over year, led by a 10.2% increase in costs of services and goods sold associated with higher handset sales, digital solutions and new businesses. Operating expenses rose 3.2%, with personnel expenses also increasing 3.2%, below inflation, he said.
Capital expenditures totaled BRL 2.6 billion in the quarter, or 16.4% of revenue. Investments focused largely on fiber growth and 5G expansion. Vivo’s 5G network covered 978 cities at quarter-end, up 325 cities from a year earlier and reaching more than 73% of Brazil’s population.
Gebara said quarterly capital spending can be seasonal and that the second-quarter intensity does not represent the company’s outlook for the full year. He said Vivo continues to pursue gradual improvement in its annual capex-to-revenue ratio.
The company generated BRL 202 million in copper-sales proceeds during the quarter as it continued its transition from a concession to an authorization model. Gebara said Vivo had sold roughly BRL 443 million of copper assets across 2025 and 2026 so far, against a previously cited potential total of BRL 3 billion.
He also said the company had identified 47 real-estate properties valued at around BRL 600 million for sale and expects the pace of copper and property sales to increase in the second half, subject to obtaining favorable prices. He noted that completion of depreciation on legacy technology could provide a positive effect on net income in the third and fourth quarters.
Shareholder Returns
Vivo said it had disbursed BRL 7 billion to shareholders under its 2026 remuneration guidance, up 32% from the comparable period of 2025. It also declared BRL 2.2 billion in interest on capital during the year to date, payable by April 2027 or earlier, up 34.5% year over year.
The company retains a share repurchase program of up to BRL 1 billion through February 2027 and reiterated its commitment to distribute at least 100% of 2026 net income to shareholders.
About Telefonica Brasil (NYSE:VIV)
Telefônica Brasil SA, commonly marketed under the Vivo brand, is one of Brazil’s largest telecommunications providers, offering a broad range of consumer and enterprise communications services. The company’s core activities include mobile voice and data services, fixed-line telephony, broadband internet (including fiber-to-the-home), and pay-TV solutions. It also provides ICT and managed services for business customers, such as cloud, data center, connectivity, Internet of Things (IoT) and security solutions.
Vivo operates a nationwide network across Brazil and serves both individual consumers and corporate clients.
