The earnings call presented a mixed outlook for Oi SA. On the positive side, the company has made significant progress in reducing net debt, increasing fiber revenue, and implementing cost reduction measures. However, these achievements are offset by substantial declines in overall revenue and legacy systems revenue, as well as a notable decrease in cash position and financial impacts due to delays in regulatory approvals. The company's strategic focus on profitability and restructuring appears to be yielding some benefits, but challenges remain in terms of revenue growth and cash flow management.
Company Guidance
During the Q3 2024 earnings call for Oi SA, the executives provided detailed guidance on several key metrics and initiatives. The company reported a significant 60% reduction in net debt fair value and a 14% decline in total revenue year-over-year, primarily due to the accelerated decline in legacy services. Despite this, fiber revenue showed resilience with a 2.8% quarter-over-quarter increase, making up 75% of the total revenue. The company also highlighted a 20% reduction in expenses and investments, excluding fiber infrastructure and rentals, reflecting strategic cost discipline. Oi SA is focused on transitioning its governance and shareholding structure, with creditors expected to hold 80% of the total shares following a successful capital increase approved by ANATEL. Additionally, the company is managing its cash position carefully, with a 30% decrease in cash over the quarter, and is exploring further capital raising options to maintain liquidity. Significant shareholders like PIMCO, SC Lowy, and Ashmore are set to hold over 5% of Oi's total capital.
Net Debt Reduction
The company reduced its net debt fair value by 60%, along with a strong reduction in credit with suppliers, which is a positive step in the restructuring process.
Fiber Revenue Increase
Fiber revenue totaled BRL 1.1 billion, showing a 2.8% quarter-over-quarter increase with fiber ARPU up 3% quarter-over-quarter, indicating a steady revenue performance.
Cost Reduction Efforts
Routine operating expenses were reduced by 10.6% year-over-year, with a 20% reduction in expenses and investments this quarter, excluding fiber infrastructure and rentals.
Growth in IT Services
Approximately 30% of B2B revenue now comes from IT services, with UCNC and IoT growing 60% and 5% respectively, reflecting a strategic focus on higher value-added segments.
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Oi SA (OIBRQ) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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OIBRQ Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Nov 06, 2024
$3.96
$4.01
+1.26%
Nov 09, 2022
$21.67
$18.80
-13.24%
Aug 11, 2022
$43.53
$42.00
-3.51%
Jun 28, 2022
$39.05
$40.62
+4.02%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Oi SA (OIBRQ) report earnings?
Oi SA (OIBRQ) is schdueled to report earning on Mar 26, 2025, TBA Not Confirmed.
What is Oi SA (OIBRQ) earnings time?
Oi SA (OIBRQ) earnings time is at Mar 26, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.