Oi Reports R$835 Million Q2 Loss as Creditors Weigh Debt Plan Amendment

The carrier burned cash in Q2 and now pins hopes on selling its 27.5% V.tal stake.

Sep 5, 2025 8:32 AM

By Brazil Stock Guide – Oi S.A. (B3: OIBR3; OIBR4 | OTC: OIBRQ; OIBZQ) reported a net loss of R$835 million ($165 million) in the second quarter of 2025, reversing a R$15 billion gain a year earlier that had been inflated by debt-equitization effects. The result adds pressure on the court-supervised telecom group to secure approval for an amendment to its 2024 restructuring plan, already filed and pending a creditor vote.

Consolidated net revenue came in at R$1.39 billion ($274 million), down from last year. Recurring EBITDA stayed negative, though slightly better thanks to the dismantling of legacy networks. Cash holdings fell to R$851 million ($168 million) at end-June, from R$1.5 billion in December 2024. Net debt rose 50% year-on-year after DIP notes were rolled into new financing.

“Without selling its 27.5% V.tal stake, Oi won’t be able to meet obligations or keep operations running,” said a Rio de Janeiro-based high-yield debt manager.

Creditors in the Spotlight

The proposed amendment offers labor creditors two options: a one-off settlement capped at R$9,000 within 180 days, or repayment in up to three years for claims of up to 150 minimum wages. Some suppliers would see payments stretched until 2038, with any unpaid balances forgiven. Non-court creditors could also opt in, sharing proceeds from asset sales.

Oi has already sold its pay-TV arm and towers and transferred its ClientCo unit to V.tal in exchange for shares — a deal that brought no cash. Survival now hinges on monetizing the V.tal stake, valued at about R$5 billion ($986 million).

Meanwhile, the “New Oi” is pivoting. Oi Soluções and domestic subsidiaries now account for 89% of revenue. In Q2, cloud sales rose 11% year-on-year, unified communications 22% and IoT 6%. Legacy network shutdowns have saved R$1.4 billion ($276 million) since 2024, with potential to reach R$2.5 billion ($492 million) by year-end.

Auditor PwC once again declined to issue an opinion on Oi’s financial statements, citing “multiple material uncertainties.” For investors, the upcoming creditors’ meeting will be decisive: either Oi gains breathing space or Brazil’s most high-profile bankruptcy drags into yet another turbulent chapter.