# Vivo posts 13% profit rise, reaffirms full payout commitment

*Stronger digital and fiber performance lifted margins and cash flow, keeping results slightly above market forecasts.*

- Published: 2025-10-30
- Section: Insights
- Tags: telecom, Telefonica, Vivo
- URL: https://brazilstockguide.com/insights/telefonica-brasil-results-3q25/

![Vivo, telecom](https://i0.wp.com/brazilstockguide.com/wp-content/uploads/2025/10/Loja_da_Vivo_no_Botafogo_Praia_Shopping-e1761861145949.jpg?fit=1024%2C638&ssl=1)

*Vivo, telecom*

**By Brazil Stock Guide –** Telefônica Brasil S.A. (B3: VIVT3, NYSE: VIV) – Vivo brand – posted a net profit of **R$1.89 billion (US$345 million)** in the third quarter of 2025, up **13.3%** year-on-year, supported by higher operating income and stronger demand for fiber and digital services. The result came slightly **above market expectations**, with EBITDA growth and margins showing consistent improvement amid a resilient telecom market.

Revenue rose **6.5%** from a year earlier to **R$14.9 billion (US$2.72 billion)**, driven by gains in postpaid mobile (+8%), fiber (+10.6%), and B2B data and digital solutions (+22.8%). Adjusted EBITDA reached **R$6.5 billion (US$1.18 billion)**, up **9.0%**, yielding a margin of **43.4%**, the highest in two years. On an after-lease basis, EBITDA margin stood at 34.3%. Operating cash flow grew **12.4%**, totaling **R$3.88 billion (US$710 million)**.

The company closed September with **116.6 million total accesses**, up **1.2%** from the prior year, including **102.9 million mobile users** and **7.6 million fiber households**, a **12.7%** annual increase. Telefônica’s 5G network reached **683 municipalities**, up **1.7x** from 2024, while postpaid ARPU rose **3.9%**, to **R$31.5**, maintaining record low churn levels.

Investments reached **R$2.6 billion (US$480 million)**, equivalent to **17.4% of revenue**, slightly lower as a share of sales despite the expansion of fiber and 5G coverage. Free cash flow advanced **5.5%**, to **R$1.76 billion (US$320 million)**. Net cash (ex-IFRS 16) ended the quarter at **R$3.0 billion (US$550 million)**, reflecting disciplined leverage and lower gross debt after the repayment of a R$1.5 billion debenture in July.

Telefônica reaffirmed its **100% payout commitment for 2024–2026**, having distributed **R$5.68 billion** to shareholders up to October 2025, including R$2.68 billion in interest on equity, R$2 billion in capital reduction, and R$1.4 billion in share buybacks. Year-to-date, the company has repurchased **48.4 million shares**, and in the quarter canceled 34.7 million shares held in treasury.

On the ESG front, Telefônica expanded its “Futuro Vivo” initiatives, including the restoration of **800 hectares of Amazon rainforest** and the development of climate education programs ahead of COP30. The company remains a leader in the **ISE B3 index** and continues to score among the top five firms in Brazil’s “Great Place to Work” ranking.

Telefônica shares have **gained 11% year-to-date**, outperforming the Ibovespa, and closed Wednesday at **R$52.80**. According to consensus data from MZIQ, the market expects the company to maintain **EBITDA growth near 8% in 2026**, supported by stable ARPU, digital service expansion, and a payout yield close to **8.5%**.

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Source: Brazil Stock Guide, https://brazilstockguide.com/insights/telefonica-brasil-results-3q25/