The president of Oi (OIBR3;OIBR4), Rodrigo Abreu, said that the company’s figures for the second quarter of 2022 reflect the company’s transition process. In the conference call with analysts about the balance sheet for the period, the executive highlighted the growth of Nova Oi’s business, especially fiber optics.
“Nova Oi’s core is shaping up and revenues are accelerating as expected,” said Abreu. The company’s consolidated revenue, itself, fell by 36.8% compared to a year earlier, to R$2.74 billion. However, the number reflected the discontinuation of assets that were sold to reduce the indebtedness of the company undergoing judicial recovery, such as those of Oi Móvel.
The recipe core, on the other hand, grew 32.6% between the periods, to R$ 1.505 billion. “Nova Oi’s revenue already represents two thirds of the total”, highlighted the CEO. Fiber revenues were R$958 million in the second quarter, with annual growth of 38.7%. Oi ended the period with 3.7 million homes connected and a net addition of 144 thousand homes.
“We believe that the macroeconomic environment will improve in the coming months and this will help to maintain the positive trend”, said Abreu.
According to him, Oi sees opportunities to increase the base of homes connected with the infrastructure implemented by V.Tal (formerly InfraCo), of which Oi is no longer the controller. “This does not mean that we will stop seeing other opportunities. This is a very important consolidation segment. We are focusing on organic growth, but all analysis will be done when opportunities present themselves”, says the CEO.
The executive also highlighted a reduction in the churn rate, despite the company not disclosing closed numbers. “It increased at the beginning of the year, but it started to improve again despite the tighter credit policy,” he said.
Liquidity and debt
The net sale of Oi’s assets contributed approximately R$5 billion to Oi’s cash in the second quarter. The company’s net debt dropped to R$ 16 billion, with a 60% decrease in financial debt since the beginning of the judicial recovery. The company informed that R$ 1 billion may still come into cash this year, with the sale of fixed structures.
Regarding the regulatory environment, company executives stated that arbitration and migration to authorization are critical for the sustainability of Oi’s business. “We are working intensively for these regulatory opportunities to have an impact in the coming years,” said Rodrigo Abreu.
According to the calculations of the National Telecommunications Agency (Anatel), Oi would have to make R$ 12 billion in investments to apply for migration from a fixed telephony concession to authorization. “We know that these are high numbers, we have already contested them and they must be reduced significantly”, said the CEO, predicting that the migration will take place in 2024.
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