Brazil
Press Release

Vero Internet continues to grow in the 3rd quarter of 2022, with an 82% increase in net revenue and an EBITDA margin of 52%

Bnamericas Published: Wednesday, November 16, 2022

This is a machine translation of Vero Internet's press release

São Paulo, November 2022 -- Vero Internet, a leading telecommunications company among ISP's (internet providers) in the South and Southeast regions of the country, continues with its strategy of product differentiation in delivering a unique customer experience , which generated a strong and continued profitable growth of the base in the 3rd quarter of 2022 (3Q22) compared to the same period last year. Net operating revenue reached R$ 185.8 million, an increase of 82.2% compared to 3Q21.

Also noteworthy is cash generation, in which Adjusted EBITDA, which excludes non-recurring disbursements from acquisitions and share plan activities, was R$ 96.0 million, against R$ 46.0 million in 3Q21, representing a 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 revenue reached R$ 631.8 million, while net revenue in the period was R$ 496.1 million, an increase of 69.5% over the same period of the previous year, when it registered 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%, which demonstrates Vero's strong financial discipline.

In the consolidated 2022, Vero's investments totaled R$ 425.5 million, with R$ 208.2 million, or 48.9% of the total, related to M&A activities and integrations. While the organic investments of fixed and intangible lines together grew 64.9% and reached R$ 217.3 million.

“Our operating performance continues on an avenue of growth, 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 Homes Passed (HP - number of homes covered by Vero's FTTH network) a geographic expansion of 74, 8% compared to the same period of the previous year. The addressable market potential also grew, with 4.5 million Addressable Homes Passed (AHP - total number of homes in the cities where the company is present), including homes and companies. In this quarter, the extension of the Vero Network totaled 29,600 km, combining more than 20,900 km of fiber optics and 8,800 km of backbone, a unique coverage to continue accelerating the Company's growth", says Fabiano Ferreira , CEO of Vero Internet.

According to the most recent data from Anatel, Vero's market share reached 35.5% in mature cities, against 33.1% in the same period last year, driven by commercial strength. Vero's expansion strategy maintains profitability as a central pillar to continue with the growth of 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 most added customers in Brazil in 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 also started operations in 12 cities, eight in Minas Gerais and four in Rio Grande do Sul. Organic net additions reached 22.5 thousand subscribers, or an average of 7.5 thousand new customers per month, which represents a 12.2% growth in relation to the same period last year. Vero is not only focused on volume, but also on profitable and sustainable growth”, assesses Ferreira.

Also in the period, Vero stood 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 presented were only possible due to the preference of our customers, the partnership of our suppliers and the commitment of our more than 2,700 employees who continue to dedicate themselves to bringing a world of possibilities to the interior of Brazil”, concludes the CEO of Vero.

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 focus on quality in customer service and the quality of agile and uncomplicated service .


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