- The first quarter of 2022 (1Q22) was positive for telecommunications service providers in Brazil, all of them showed positive revenue growth compared to 1Q21.
- The revenue growth showed by Desktop (company that led the ranking of growth), Unifique and Vero was leveraged by acquiring other providers.
Desktop's 1Q22 Results:
- Desktop's net revenue grew 172% in 1Q22/1Q21, reaching R$ 157 million. The EBITDA margin was 44% in the quarter and net profit hit R$ 14 million.
- Desktop reached 3.1 million home passes in the quarter with a take-up rate (connected houses/passed houses) of 21%.
Vero's 1Q22 Results:
- Vero's net revenue grew 69% in 1Q22/1Q21, reaching R$155 million. The EBITDA margin reached 49.6% and the net profit R$ 9.5 million.
- Vero ended the quarter with 2.3 million home passes, but had a take-up rate of 30%.
- Vero announced the acquisition of Renovare, which has around 35 thousand accesses in Rio Grande do Sul.
Conexão's 1Q22 (Triple Play) Results:
- Connection's (Triple Play) net revenue grew 11.7% in 1Q22/1Q21, reaching R$ 125 million. The EBITDA margin was 37.6% and the loss reached R$ 19.7 million.
Telebras' 1Q22 Results:
- Telebras' net revenue grew 5.1% in 1Q22/1Q21, reaching R$ 71 million. The loss hit R$ 76 million.
Oi
- Master, a fixed broadband provider in Minas Gerais, signed an agreement with V.tal to expand its operation to the Southeast and Midwest regions by 2023.
- The Final Balance of Oi's Caixa Financeiro increased by R$ 425 million in March, reaching a total of R$ 1,519 billion.
- Oi's ON shares had losses of 2.9% in the week and PN shares of 5.4%. The Ibovespa appreciated 1.5% in the week. Oi's ON share accumulates losses of 11.8% in the year and the PN of 3.9%.
TIM
- With the incorporation of Oi, TIM became the operator present in more Brazilian municipalities (5,235).
- TIM intends to use bus stops in São Paulo and Guarulhos to expand mobile coverage within the Street Level Solution (SLS) project.
Other Highlights
- PadTec's net revenue grew 9.8% in 1Q22/1Q21 and WDC's 6.9%.
- Linear TV still accounts for 79% of video consumption time indoors, while streaming services account for 21%. (Kantar IBOPE Media).
- The City Hall of Rio de Janeiro published a decree with rules for installation of antennas in city, meeting points established in the Federal Antenna Law, such as the 60-day period for grating authorizations.
1Q22 Results: Vivo
- Vivo's net revenue in 1Q22 (R$ 10.8 billion) showed strong growth in 1Q22/1Q21 (+4.6%) with 6.1% in mobile revenue and 1.8% in fixed revenue.
- Mobile revenue totaled 66.8% of the operator's revenue, 49% of which came from postpaid. This participation will grow with the incorporation of Oi.
- In fixed line, the largest revenue comes from broadband (FTTx), with FTTH network revenue reaching R$ 1,272 million and FTTC (last copper meters) R$ 166 million.
- Vivo ended the quarter with its FTTH network couting 20.5 million homes passed in 341 cities and 4.8 million homes connected. Take up-rate (connected houses/past houses) of 23.4%.
- The EBITDA margin hit 39.7% and the net income reched R$ 750 million. Vivo invested (Capex) R$ 1,880 million in 1Q21.
- This result was better than the one registered by Telefônica Group, which had a 9.0% drop in revenue and an OIBDTA margin of 34%.
1Q22 Results: Algar
- Algar Telecom's net revenue grew 14.6% when comparing 1Q22 with 1Q21. The incorporation of Vogel contributed to this result.
- Revenue from the B2B segment, which represents 67% of the operator's revenue, grew 24.1% in this comparison and B2C raised 1.3%.
- EBITDA margin reached 39.5% and net income totalized R$ 10 million.
- Algar Telecom has plans to expand its residential fixed fiber-based broadband services beyond the concession area, starting with Araxá, in Minas Gerais.
1Q22 Results 1Q22: Brisanet and Unifique
- Brisanet presented in 1Q22 a higher revenue (R$ 217 million) than that of Unifique (154 million).
- Brisanet's net revenue grew 32.2% in 1Q22/1Q22 and Unifique's 71.4%, leveraged by acquisitions.
- Brisanet reached 5.1 million home passes in the quarter with a take-up rate (connected houses/passed houses) of 18%. Unfique ended the quarter with 1.7 million home passes, but with a take-up rate of 30%.
- Unifique's EBITDA margin hit 50.0% in the quarter and net income totalized R$ 32.9 million, while Brisanet's margin reached 35.8% and registered net income of R$ 9.5 million.
5G
- Brisanet signed a contract worth about R$ 230 million with Huawei for the purchase of the first cell sites for 5G pilots.
- The GAISPI (Group for Monitoring the Implementation of Solutions for Interference Problems) decided on last May 11th to recommend to Anatel's Board of Directors an additional period of 60 days for the release of spectrum in capital cities and the Federal District. Suppliers of Ku-band receivers participating in the RFP need more time.
- Neko (Surf) gave up acquiring the 200 MHz band in 26 GHz for the state of São Paulo, which it had acquired in the 5G auction.
- Vivo will use Amazon Web Services (AWS) to host part of its 5G core that will use public cloud.
- In the United Kingdom, 3 UK has revealed plans to shut down its 3G network at the end of 2024 as it seeks to free up resources and increase investment in its 4G and 5G offerings.
Oi
- After the publication, by Anatel, of the decision granting prior consent for Oi to sell control of V.tal, this operation must be completed by the end of May.
- V.tal reached 16 million homes passed in 231 municipalities of the 27 federation units. It is implementing around 400 thousand homes a month and aims to reach 32 million by 2025.
- Oi postponed the release of 1Q21 results to June 21st.
- The first impasse occurred in the arbitration process between the fixed telephony concessionaires and Anatel. Anatel wants the period to be considered for the settlement of accounts to be 5 years and the concessionaires want a longer period: since the moment when the triggering events that would have caused the imbalance occured. (Telesíntese)
- Oi's ON shares lost 8% for the week and PN shares lost 3%. Ibovespa showed an appreciation of 1.7% in the week. Oi's ON share accumulates a 9.2% loss in the year and PN share got a 1.6% gain.
Broadband
- Brasil TecPar acquired Titania Telecom, which has around 50 thousand broadband accesses in Mato Grosso.
- The EB Capital Fund would have hired Lazard to sell Alloha's fiber network composed by 110 thousand km of backbone and 6 million homes passed, adopting the same infraCo model as Oi.
- The United States government signed an agreement with the country's broadband operators to offer high-speed Internet to low-income families for up to US$ 30 a month, about R$ 150. A normal plan with a speed of 100 Mbps costs about US$ 70 (R$ 350). In Brazil it costs less than R$ 150.
Other highlights
- Cade fined Oi, Vivo and Claro R$ 783 million for irregular formation of a consortium in the bidding for network services for the Post Office in 2015.
Coming Weeks
- May 16th: Desktop's 1Q22 Results
1Q22 Results: Claro and América Móvil
Claro's mobile revenue started a growth trajectory as of 2Q17 and surpassed fixed revenue in 1Q22. Fixed revenue fell in this period due to losses in pay TV and fixed telephony.
Comparing 1Q22 with 1Q21, Claro's net revenue increesed 2.6%, being:
- Mobile revenue grew 10.3%. The growth occurred in both postpaid (+10.5%) and prepaid (+9.1%) revenues.
- Fixed revenue was 4.2% lower due to the reduction in Pay TV (-12.7%) and fixed telephony (-14.4%) revenues. The losses were partially offset by the growth in fixed broadband (+4.3%) and business services (+16.2%) revenues. Claro activated FTTH network in 20 new cities in 1Q22.
Claro's EBITDA margin reached 40.1% in the quarter.
América Móvil's net revenue increased 2.4% in Mexican pesos.
Accesses in 1Q22 (Anatel)
- Vivo led mobile growth in 1Q22, with net adds of 1,433 thousand cell phones, followed by Claro (1,291 thousand accesses), MVNOs (394 thousand), Algar (245 thousand) and TIM (197 thousand). OI Mobile is included in Vivo's numbers (52 thousand), Claro (28 thousand) and TIM (-42 thousand).
- Vivo led the growth in postpaid and prepaid, but Claro took over the leadership in M2M with the incorporation of Oi Mobile.
- Anatel updated the number of fixed broadband accesses in Dec/21 from 41.51 million to 41.59 million. Values for 1Q21 (40.8 million) remains underreported.
- Pay TV lost 164 thousand subscribers in the quarter and fixed teleohony lost 818 thousand.
Results 1Q22
Comparing 1Q22 with 1Q21, revenue increased:
- +23% at Google
- +18.4% at Microsoft
- +9.0% at Apple
- +7.0% at Amazon
- +6.6% at Facebook
Results 1Q22: Smartphones in the world
- Smartphone sales worldwide were 8.9% lower in 1Q22 than in 1Q21. Samsung maintained its leadership in smartphone sales worldwide in 1Q22 with 23.4% of the market share, followed by Apple (8.0%) and by Chinese suppliers Xiaomi, OPPO and Vivo with 12.7%, 8.7% and 8.1% respectively.
Oi Mobile
The migration of Oi Mibile's customers to the buyers will take place in stages:
- TIM intends to open its mobile network for roaming of Oi Mobile cell phones acquired in 1 month after closing (20/04). Customers will be gradually migrated to TIM in weekly waves over a 9-month period starting 3 months after closing.
- Vivo will follow a similar strategy, completing the migration in about 12 months.
- At Claro, customers will be effectively migrated after 12 months.
TIM plans to deactivate 4,400 of the 7,200 cell sites it received from Oi Mobile. The company estimates that the operation will bring global value creation of R$ 16 to 19 billion (NPV) of which 45% will be raised by 2030.
Vivo's initial calculations show potential synergies of R$ 5.4 billion, related to cost and capex efficiencies, net of investment and integration costs.
Oi
- Oi entered into an agreement with Sky to sell its DTH postpaid customer base and for SKY to use Oi's IPTV infrastructure to provide services, sharing revenue between them. With this acquisition, SKY will have a market share very close to Claro's.
- The Board of Anatel should again discuss this Thursday (May 5th) the sale of V.tal's control.
- Oi's ON shares had losses of 8.1% in the week and PN shares of 5.5%. The Ibovespa showed losses of 2.9% in the week.
Huawei Global Analyst Summit 2022.
- Huawei presented its strategy at the Huawei Global Analyst Summit 2022. The company increased R&D investments to 22.4% of revenue and presented 10 challenges for this effort, 2 scientific and 8 technical.
- Among them, I highlight the following scientific challenge: How can we better understand the physiological mechanisms of the human body, including the functioning of 8 body systems, as well as human intention and intelligence. After all, the human body performs the functions that we want to replicate with the help of artificial intelligence much faster and with much less energy consumption.
Other Highlights
- Claro, in partnership with Ericsson, used the 26 GHz band to provide capacity for Globo's transmission of the São Paulo Carnival.
- Anatel released the 2021 Annual Management Report.
Coming Weeks
- May 3th: TIM's 1Q22 Results
- May 11th: IoT Brasil Summit – 6th edition
