A Claro Participações released its financial results for the 1st quarter of 2023. The operator had total net revenue of R$ 11.17 billion, up 10.8% compared to the same period of the previous year. The company had an increase in mobile telephony revenues and a drop in fixed services.
Claro – Financial results for the 1st quarter of 2023
Check out Claro’s main indicators for the 1st quarter of 2023 and the comparison with the previous period:
|Indicator||1st quarter of 2023||1st quarter of 2022||Difference|
|total net income||BRL 11.17 billion||BRL 10.08 billion||+10.8%|
|Mobile service revenue||BRL 5.64 billion||BRL 4.63 billion||+21.7%|
|Fixed service revenue||BRL 4.96 billion||BRL 5.04 billion||-1.6%|
|EBITDA (Earnings before interest, taxes, depreciation and amortization)||BRL 4.72 billion||BRL 4.09 billion||+15.5%|
As it is a privately held company in Brazil, Claro does not disclose net income like Vivo, TIM or Oi. EBITDA, which represents earnings before interest, taxes, depreciation and amortization, jumped 15.5% in the year, while the EBITDA margin grew 1.7 percentage points.
Mobile grows 15.4% in customers and 5G reaches 77 cities
Mobile telephony continues to be Claro’s flagship product. The service had revenue of R$ 5.64 billion, up 21.7% compared to the same period of the previous year.
Claro ended the quarter with 82.8 million mobile customers, a jump of 15.4% in the annual comparison. However, it is important to highlight that the customers purchased from Oi Móvel had not been incorporated in the 1st quarter of 2022.
Claro claims to have finalized the massive migration of all customers acquired from Oi Móvel, including the cleaning of inactive subscribers. Tele canceled at least 4.5 million lines, having the highest cancellation rate compared to TIM and Vivo.
The postpaid service, which generates more revenue due to the higher monthly cost for the user, increased by 12.8% in the annual comparison. Claro also celebrates the good performance of the Claro Flex digital plan, which grew 68.2% in lines. Prepaid also grew by 19.1% in the year.
Regarding 5G, Claro claims to have ended the quarter with 77 cities covered by the technology and 5.5 million fifth generation devices in its network.
However, data from Anatel indicate that Claro is the operator with the lowest number of 5G antennas in the 3.5 GHz frequency, with 2,489 licensed stations. TIM leads the podium with 4,840 registered antennas, while Vivo maintains the vice-leadership with 2,633 stations.
Claro’s mobile service had a good financial performance, but the same cannot be said for the fixed services arm. Claro’s revenue in the segment was R$ 4.95 million, a decrease of 1.6% in comparison with the same period of the previous year.
Claro maintains its leadership in the Brazilian fixed broadband market. The most recent access data reported to Anatel is from February 2023, with 9.77 million subscribers — an increase of 0.39% in the annual comparison.
The operator celebrates better sales performance in the broadband service. The FTTH network, with optical fiber that arrives inside the customer’s home, is available to 8.7 million households in 394 cities, and Claro maintains its strategy of expanding fiber in areas already served by coaxial cable.
In the pay-TV sector, Claro lost 12.2% of its customer base, which ended February 2022 with 5.94 million subscribers.