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# Telefônica Brasil Profit Climbs 30% With Help From Lower Legacy-Network Depreciation
- URL: https://www.bullished.co/telefonica-brasil-profit-climbs-30-with-help-from-lower-legacy-network-depreciation-a810e373/
- Published: 2026-11-10T21:26:19.000Z
- Updated: 2026-11-10T21:26:19.000Z
- Description: Free cash flow rose 37.7%, while a scheduled December distribution brings planned 2026 shareholder payments to R$7.3 billion.
- Author: Matteo Parrino
- Tags: SEC Filings, VIV, Industry: Communication Services

Telefônica Brasil, which sells mobile, broadband and digital services in Brazil, reported a [30.1% increase](https://www.sec.gov/Archives/edgar/data/1066119/000129281426005216/vivpr3q26%5F6k.htm?ref=bullished.co) in third-quarter net income attributable to the company to R$2.5 billion in its Tuesday results announcement. The company attributed the gain to growing revenue, higher EBITDA and lower depreciation after accelerated charges on legacy networks, including copper assets, ended.

## Copper's Smaller Charge, Larger Gains

Depreciation and amortization fell 2.9% from a year earlier to R$3.6 billion, and 9.4% from the second quarter. Network investment partly offset the reduction in legacy-asset charges.

EBITDA—earnings before interest, taxes, depreciation and amortization—rose 10.0% to R$7.1 billion. Its margin reached 44.5%, up 1.1 percentage points from a year earlier.

Copper also helped through asset sales. Gains of R$366 million, mainly from copper-related disposals and measured after costs, helped offset increases in operating expenses. Operating expenses were unchanged overall, even as personnel costs rose 7.8% and general and administrative costs increased 14.3%.

Net financial expenses increased 12.4% to R$748.9 million. The company attributed that increase mainly to lower interest income, monetary adjustments on its FISTEL TFF liability and larger network-related lease liabilities.

## Mobile And Fiber Build Revenue

Net revenue increased 7.2% to R$16.0 billion. The company credited postpaid mobile, fiber broadband and corporate data and digital services, whose revenues grew 9.1%, 5.7% and 4.9%, respectively.

Telefônica Brasil serves consumers and businesses, combining connectivity with cloud computing, cybersecurity and other digital products. Business digital-service revenue reached R$5.6 billion over the latest twelve months, up 10.9% and accounting for 8.9% of total revenue.

The postpaid mobile base grew 7.1% to 74.7 million connections. Fiber reached 8.4 million connected homes, up 10.8%, across a footprint of 32.4 million homes. Its 5G network covered 1,012 municipalities and 73% of Brazil's population.

Vivo Total bundles mobile and fiber on one offering. A one-time reallocation of bundle revenue between those businesses affected their individual revenue figures but left total service revenue unchanged.

## Cash Supports The Payout Commitment

Free cash flow [rose 37.7%](https://www.sec.gov/Archives/edgar/data/1066119/000129281426005216/vivpr3q26%5F6k.htm?ref=bullished.co) to R$2.4 billion. The company credited EBITDA growth, judicial-deposit reversals and tax payments that fell 23.6%; greater working-capital consumption partly offset those benefits.

Capital spending, excluding leases and licenses, fell 1.6% to R$2.6 billion. That reversed year-over-year increases of 9.6% in the first quarter and 6.1% in the second. About 75% went toward mobile and fixed-network infrastructure.

For 2024–2026, Telefônica Brasil has committed to distribute at least all annual net income through dividends, interest on capital, capital reductions and buybacks. It paid R$7.0 billion in the first nine months of 2026, 9.6% more than the full-year 2025 distribution, including R$3.0 billion of previously declared interest on capital and R$4.0 billion through a capital reduction.

The executive board approved a December 15, 2026 payment of R$325 million in interest on capital—a shareholder distribution—declared in February. That brings planned 2026 payments to R$7.3 billion. Up to R$1.0 billion remains available for buybacks.

Telefônica Brasil had a market value of $18.6 billion at Tuesday's close.

An additional R$3.2 billion in declared interest on capital is due to shareholders by April 30, 2027.

### Sources

- [Form 6-K — Telefônica Brasil S.A. Investor Relations Telefônica Brasil S.A. (B3: VIVT3, NYSE: VIV) discloses today its results for the third quarter of 2026, presented in](https://www.sec.gov/Archives/edgar/data/1066119/000129281426005216/vivpr3q26%5F6k.htm?ref=bullished.co) — SEC EDGAR