VIV · Telefônica Brasil S.A.

Telefônica Brasil S.A. delivered strong 1Q26 results, with net revenue growing 7.4% YoY to R$15,457 million, primarily driven by postpaid mobile revenues (+7.8% YoY, 86.6% of mobile service revenue) reflecting 3.5 million net additions and ARPU of R$52.6 (+0.8% YoY ex-M2M/dongles). Fixed revenues rose 5.1% YoY, led by FTTH (+9.3%) amid homes passed expanding to 31.5 million (+6.2% YoY) and homes connected to 8.0 million (+11.5% YoY), boosting take-up to 25.4%. Corporate Data, ICT, and Digital Services grew 8.5% YoY to R$1,423 million, with fixed digital B2B up 14.8%. EBITDA expanded 8.9% to R$6,209.3 million (40.2% margin, +0.5pp), supported by revenue growth and controlled costs, while EBITDA AL rose 9.7% (31.1% margin). Net income surged 19.2% to R$1,261.1 million, the strongest growth since 1Q24, fueled by EBIT +16.9% despite higher financial expenses from FiBrasil acquisition debt and lease liabilities. Capex of R$2,047.5 million (13.2% of revenue) focused on 5G (905 municipalities, 71% population coverage) and fiber expansion (453 cities), yielding operating cash flow of R$4,161.8 million (+8.5% YoY). Balance sheet strengthened with net cash ex-leases at R$4,490.6 million and net debt/EBITDA at 0.4x. Shareholder returns totaled R$6,990 million YTD (exceeding FY2025), including R$4,000 million capital reduction and new R$1 billion buyback program, reaffirming 100%+ net income distribution policy.