Q4 2024 Oi SA - em Recuperacao Judicial Earnings Call (English, Portuguese) Transcript
Key Points
- Oi SA (OIBZQ) successfully restructured its financial debt, reducing net debt and improving liquidity.
- The company completed a capital increase, with credit supporters capitalizing part of their credits, resulting in a new Board of Directors and improved governance.
- Oi SA (OIBZQ) made significant progress in migrating from a concession regime to an authorization regime, reducing regulatory costs.
- The sale of UPI ClientCo to V.Tal was completed, resulting in Oi holding a 27.5% stake in V.Tal, Brazil's largest neutral fiber company.
- Oi Solutions, a core business for Oi, is showing growth in ICT services, with cloud-based services revenue increasing by 11% and unified communications growing by 20% year-on-year.
- Revenue performance was negatively impacted by a 33% year-on-year decline, primarily due to a reduction in non-core revenue.
- Oi Solutions' revenue fell by 24.3% year-on-year, reflecting reduced demand for legacy services and a more selective sales strategy.
- Routine operating expenses were reduced by 16% year-on-year, but personnel costs increased by 9.7% due to contract terminations.
- The company continues to face challenges with legacy services, impacting routine EBITDA negatively.
- The arbitration process related to legacy issues remains unresolved, with no clear timeline for a final decision.
Good morning, everyone, and welcome to the meeting. My name is Marcello Milliet; I'm the CEO of Oi. And we're going to have Rodrigo Aguiar, our CFO; and some members of our Executive Board with us, as well as our investor relations team.
I'm going to be using this first chapter of the presentation to recap some important steps the company took in 2024 and also to clarify what the new Oi is going to be like in the future. In the second chapter, we'll go through the fourth quarter's figures, and then we'll open up to your questions.
I'll show you the slides as we go through the presentation. Now, this is going to be slide number 4. We'll look at how the organization plan has been performing or performed in 2024.
The new Oi has made progress in the central pillars that are absolutely pivotal for the company to be sustainable financially in the long term. After intense and lengthy negotiations, the approval of the new plan for the core supervisory organization allowed the company to
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