Telefonica Brasil: 1Q26 - Solid revenues, EBITDA below

Research evidence excerpt

Telefonica Brasil: 1Q26 - Solid revenues, EBITDA below

Equity Research

Emerging Markets Telecoms

11 May 2026

Telefonica Brasil

1Q26 - Solid revenues, EBITDA

below First Look

TEFB reported fundamentally strong results but EBITDA came VIV EQUAL WEIGHT

below consensus expectations. This could be due to Emerging Markets Telecoms NEUTRAL

expectations of higher copper asset sales, but we also note Price Target USD 16.50

Price (08-May-26) USD 15.60

cost pressure. We expect a negative reaction. Potential Upside/Downside +5.8%

Source: Bloomberg, Barclays Research

Net revenues came +1.3%/+1.9% BBG cons./BARC and grew +7.4 yoy (vs +7.1% yoy in 4Q25). In

terms of service revenues, MSR came +0.2%/+1.2% above consensus/Barclays whilst FSR were Emerging Markets Telecoms

-1.6% below Barclays, with no acceleration in BB net adds, and FTTH ARPU decline was stronger Mathieu Robilliard

than we expected (-2.1% yoy vs our expectation of -1% yoy). B2B revenues also came in below +44 (0)20 3134 3288

our expectations, but we flag these can be lumpy. EBITDA rose by +8.9% yoy (vs +8.1% yoy in mathieu.robilliard@barclays.com

BBI, Paris4Q25) and EBITDA al grew +9.7% yoy (vs +9.2% yoy in 4Q25). This is above Barclays estimates

but below Bloomberg consensus. This could be due to higher expectations for sale of Maurice Patrick

concession-related assets for consensus than delivered. In any case, we note cost upside +44 (0)20 3134 3622

pressure notably on bad debt. Capex came in below expectations (-1.4%/-11.5% company maurice.patrick@barclays.com

Barclays, UKcons./BARC). In terms of operating trends, mobile postpaid continued to perform strongly,

driven by customer base growth: net adds (ex-M2M) reached +830k, up from +710k in 4Q, Ganesha Nagesha

alongside +0.8% yoy growth in ARPU, now at R$52.6.