This is an automatic translation of the Vero Internet press release
Sao Paulo, November 2022 — Vero Internet, a leading telecommunications company among ISPs (Internet Service Providers) in the South and Southeast regions of the country, continues its strategy of product differentiation by offering a unique customer experience, which has generated continued strong profitable base growth in Q3 2022 (3Q22) compared to the same period last year. Net operating income reached R＄185.8 million, an increase of 82.2% compared to 3Q21.
Also of note is cash generation, in which Adjusted EBITDA, which excludes one-time cash outflows from acquisitions and share plan activities, was R＄96.0 million, compared to R＄46.0 million. R＄ in 3Q21, representing growth of 108.8%, with an EBITDA margin of 51.7%. This increase is explained by the acquisitions made in 2022 and the organic growth of the customer base.
In the first nine months of 2022 (9M22), gross operating income reached R＄631.8 million, while net income for the period was R＄496.1 million, an increase of 69, 5% compared to the same period of the previous year, when it recorded R＄＄292.6 million. Adjusted EBITDA, in turn, reached R＄254.2 million, an increase of 86.2% compared to 9M21, maintaining a margin of 51.2%, demonstrating Vero’s strong financial discipline.
In the consolidated year 2022, Vero’s investments totaled R＄425.5 million, of which R＄208.2 million, or 48.9% of the total, related to M&A activities and integrations . While the organic investments of fixed and immaterial lines increased together by 64.9% and reached R＄217.3 million.
“Our operational performance continues on a growth path, with positive gains. We ended the period in 200 cities and 721.7 thousand customers, with an extensive coverage network that covers 2.7 million past houses (HP – number of households covered by Vero’s FTTH network) a geographical expansion of 74.8% compared to the same period of the previous year. The addressable market potential also increased, with 4.5 million Successful addressable households (AHP – total number of households in the cities where the company operates), including households and businesses. During this quarter, the extension of the Vero network totaled 29,600 km, combining more than 20,900 km of optical fiber and 8,800 km of backbone, a unique coverage to continue accelerating the growth of the company”, declares Fabiano Ferreira, CEO of Vero Internet.
According to the latest data from Anatel, Vero’s market share reached 35.5% in mature cities, up from 33.1% in the same period last year, driven by sales strength. Vero’s expansion strategy maintains profitability as a central pillar to further grow its operations. In 3Q22, ARPU was R＄94.47, a significant increase of 12.1% compared to 3Q21. The company was one of the providers that added the most customers in Brazil during the period, with 22,500 new subscribers organically.
“Among the outstanding initiatives focused on customer experience, we opened a concept store in one of the main cities of our operation in Minas Gerais: Juiz de Fora. From January to date, we have also launched operations in 12 cities, eight in Minas Gerais and four in Rio Grande do Sul. Organic net additions reached 22.5 thousand subscribers, an average of 7.5 thousand new customers per month, representing a growth of 12.2% compared to the same period last year. Vero is not only focused on volume, but also on profitable and sustainable growth,” Ferreira assesses.
Also over the period, Vero stands out in innovation by signing a commercial partnership with FiBrasil to share the neutral network. In practice, Vero will explore the infrastructure already built by FiBrasil, using it as an extension of its current coverage.
“The results shown were only possible because of the preference of our customers, the partnership of our suppliers and the commitment of our more than 2,700 employees who continue to be dedicated to bringing a world of possibilities within of Brazil”, concludes the CEO of Véro.
About Vero
Vero is a Brazilian telecommunications company created in 2019, controlled by Vinci Partners and operating in Minas Gerais and all the southern states of the country, taking the culture of emphasizing the quality of customer service and the quality of a agile and simple service.
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