Net revenue

Algar Telecom announces a 10% increase in net revenue in 2021

[Machine translation]

Press release

By Algar Telecom

Sao Paulo, February 23, 2022 – Algar Telecom, a telecommunications and IT company of Grupo Algar, published this Tuesday (22) the consolidated financial results for 2021. During the year, the net turnover reached R$ 2,588, 4 million, representing a growth of 10% compared to 2020, mainly driven by the performance of B2B. Recurring EBITDA reached R$ 1.1 billion, an increase of 10%, with a margin of 43%. Q4 net revenue was R$711.6 million (+18%) and EBITDA was R$310.9 million (+29%), also with a margin of 43% .

At the end of 2021, B2B customers (corporate and SME) totaled 183,700 and generated net revenue of R$1,660.4 million, an increase of 17%, representing 64% of the total net revenue of the company. Business customers (medium and large businesses) increased from 16.5 thousand in December 2020 to 20.4 thousand in December 2021, an increase of 24%. Micro and small enterprises (MSEs), meanwhile, totaled 143,500 in 2020 and ended 2021 at 163,300, a growth of 14%. This performance is the result of both the geographic expansion movement and the acquisition of Vogel Telecom in August 2021.

By the end of the year, Algar Telecom’s optical fiber passed through 95% of the more than one million homes in its operating area, 52% of which had a corporate connection. Of the 506,000 residential broadband customers, 473,000 were connected to optical fiber – 93.5%, which means an increase of 18.7pp compared to 2020. Net revenues generated by B2C customers totaled 928 million of R$ in 2021 . Excluding pay-TV revenues, a product discontinued in December 2020, annual growth would have been 3%, due to the increase in broadband, mobile telephony and added services revenues, which more than offset the drop in revenues. other lines of income.

In 2021, Algar Telecom invested 690.9 million reais, mainly intended to expand the fiber optic network and connect new customers. Added to the investment made in Vogel Telecom, the total amounts to R$1,068.5 million without the effects of IFRS16 (+131% year-on-year). Looking only at the 4th quarter, BRL 301.9 million was invested (+123% compared to the same period in 2020). The consolidated net income represented BRL 229.5 million, an increase of 13% compared to the amount of BRL 202.4 million recorded in 2020, even in a difficult macroeconomic scenario.

“More than an increase in demand caused by the pandemic, these results reveal the affirmation of our growth strategy. The figures are the result of the efforts of our approximately 5,000 employees, investments in the latest technologies, the constant evolution of our corporate governance practices and a corporate culture in which innovation and the best ESG practices permeate all areas and activities of the company. company,” comments Tulio Abi-Saber, vice president of finance and investor relations at Algar Telecom.

retrospective

In 2021, Algar Telecom took two important strategic steps. One of them was the acquisition of Vogel Telecom, announced in May and planned taking into account the characteristic of complementarity with the fiber network and the service offer, allowing a synergy of relevant impact on the activity. With Vogel, the company extended its network by 27,000 kilometers and received 3,400 corporate customers in its portfolio – in the main regions of the municipalities that concentrate important telecommunications markets in Brazil.

The second was the closing of seven spectrum lots in the 5G auction, which secured Algar Telecom the largest spectrum for this technology in its area of ​​operation. In December, the company was the first operator in the country to launch 5G services on the recently acquired 2.3 GHz frequency, in three of the main cities where it operates – Uberlândia, Uberaba and Franca.

“We enter the year 2022 aware of the challenges that the Brazilian economy is facing during this period. On the other hand, we are optimistic about the high vaccination rates in the country and the gradual recovery of the service sector. We let’s renew our faith in Brazil and our confidence in a future with even more positive and promising prospects, ”concludes the executive.

About Algar Telecom

Algar Telecom, a company of the Algar group, has a wide portfolio of telecom and IT solutions to serve businesses (B2B) and individuals (B2C). The company offers high-speed fiber optic Internet, cellular, voice, data and quality IT services, including cloud and network security services, as well as management systems for small businesses.

With 68 years in the market, it has a modern infrastructure, supported by a 112,000 km fiber optic network that currently serves more than 372 cities in 16 Brazilian states and the Federal District. For all these locations, the company invests in a personalized, consultative and efficient service to offer ever more quality to its customers.

A public company, not listed on the stock exchange since 2007, Algar Telecom is committed to respecting the best practices of corporate governance. There are more than 4,500 associates – as the company’s employees are called – committed to maintaining a close relationship with their customers and high quality in service delivery, with sustainable and innovative practices.