Oi SA (OIBZQ) Q1 2025 Earnings Call Highlights: Strategic Shifts Amid Revenue Challenges

GuruFocus News

Fri, May 16, 2025, 12:09 AM 4 min read

• New Revenue Contracts: BRL53 cardinal successful caller gross from unreality computing conception contracts successful aboriginal 2025.

• Revenue from Domestic Subsidiaries: Nearly 20% year-on-year growth.

• Cost Savings: BRL1 cardinal accumulated savings from January 2024 to March 2025, with an expected full of BRL2.5 cardinal by the extremity of 2025.

• New Oi Revenue: BRL631 cardinal successful Q1 2025, down 27% year-on-year.

• Oi Solucoes Revenue: BRL371 million, representing astir 60% of full revenue.

• Operating Expenses Reduction: 19% simplification successful operating expenses and investments successful Q1 2025.

• Consolidated Net Revenue: Fell 34.3% compared to Q1 2024.

• Routine OpEx: BRL1.9 billion, a 21% year-on-year reduction.

• Cloud Services Revenue: 8% year-on-year increase.

• Unified and Collaborative Communications Revenue: 30% year-on-year growth.

• IoT Revenue: 12% year-on-year growth.

• CapEx: BRL78 cardinal successful Q1 2025, a 44% year-on-year reduction.

• Cash Balance: BRL1.5 cardinal astatine the extremity of the period, with an 18% currency pain successful the quarter.

• Warning! GuruFocus has detected 8 Warning Signs with OIBZQ.

Release Date: May 15, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Oi Solucoes is the main root of gross growth, with a beardown beingness successful some backstage and nationalist sectors.

• The institution won bids and signed contracts totaling BRL53 cardinal successful caller gross successful aboriginal 2025.

• Revenues from home subsidiaries grew by astir 20% year-on-year.

• Cost-saving initiatives resulted successful a BRL1 cardinal simplification successful expenses from January 2024 to March 2025.

• Oi Services, a recently created subsidiary, began contributing to consolidated gross results successful March 2025.

• Consolidated nett gross fell 34.3% compared to the archetypal 4th of 2024.

• Revenue from Oi Solucoes fell by 21% year-on-year owed to reduced request for bequest services.

• Routine EBITDA continues to beryllium impacted by precocious costs of bequest services.

• Cash pain was 18% successful the quarter, with a important information of currency tied to circumstantial obligations.

• The institution faces challenges successful addressing the backing spread and needs to advancement connected plus sales.

Q: Can you elaborate connected the show and strategical value of Oi Solucoes successful the archetypal 4th of 2025? A: Marcelo Milliet, CEO, explained that Oi Solucoes is the halfway constituent of the radical and the main root of gross growth. It has a important beingness successful some the backstage and nationalist sectors, offering a robust portfolio of exertion solutions. In the archetypal 4th of 2025, Oi Solucoes strengthened its beingness successful the unreality computing segment, winning contracts totaling BRL53 cardinal successful caller revenue. The institution continues to absorption connected higher value-added segments, with 39% of its gross coming from information, communication, and exertion services.