Phani Kanumuri

Phani Kanumuri asked about Millicom's shareholder remuneration strategy in light of recent acquisition charges. He also sought to understand the drivers behind the strong subscriber growth and accelerating revenue in Guatemala, including any price increases. Finally, he inquired about the factors accelerating the migration from Prepaid to Postpaid in highly Prepaid regions.

Answer

CEO Marcelo Benitez explained Guatemala's success through excellent execution, including 20% month-over-month Postpaid growth, strategic network investment, and effective Prepaid base management leading to ARPU increases. He detailed that the Prepaid to Postpaid migration is driven by network quality, simplified value propositions, and an easy, two-click migration process. CFO Bart Vanhaeren stated that dividend guidance is not provided, but the aim is to distribute two-thirds of EFCF, noting that leverage will temporarily exceed 2.5x due to acquisitions, and a decision on future dividend growth will be clearer with Q1 results.

Phani Kanumuri asked about Millicom's shareholder remuneration strategy in light of recent acquisitions, the drivers behind Guatemala's strong subscriber and accelerating revenue growth, and the factors increasing the appetite for postpaid migration in the region.

Answer

CFO Bart Vanhaeren stated that Millicom is not giving specific dividend guidance but aims to distribute two-thirds of Equity Free Cash Flow. He noted that leverage would temporarily increase due to acquisitions and expressed a desire to see leverage come down before significantly increasing dividends, promising more clarity with Q1 results and the AGM. CEO Marcelo Benitez attributed Guatemala's success to excellent execution, including a 20% quarter-over-quarter growth in postpaid customers (with only 12% penetration), significant network investment (200+ sites, aiming for 500+), and sharp prepaid base management increasing ARPU. He explained that postpaid migration is driven by prepaid customers' limited connectivity (15 days/month), granular network investment, and a simple, two-click migration process with clear value propositions.

Phani Kanumuri from HSBC Holdings plc questioned Vivo's mobile net adds and market share, noting a decline in subscribers (excluding dongles and M2M) and a 1 percentage point market share drop year-over-year, seeking reasons for this trend. He also inquired about the future steps to maintain growth in the B2B strategy, particularly regarding penetration in the SME segment, and later followed up on the drivers for B2B connectivity growth.

Answer

Christian Gebara, CEO of Telefônica Brasil, countered the market share concern, stating mobile market share is stable and emphasizing strong revenue growth, record Q4 2025 net adds (930,000), and a stable 1% postpaid churn. He highlighted a 5.8% mobile ARPU improvement year-over-year. For B2B, Gebara noted a strong quarter with BRL 5.3 billion in digital service revenues (up 29.5% year-over-year), representing 8.8% of total Vivo revenues. He confirmed penetration growth across all segments, including SMEs, through a variety of products from location to cyber solutions. For B2B connectivity growth, he cited strong performance in SMEs and advanced data solutions for corporate customers, including fiber and corporate data solutions.

Phani Kanumuri asked about the trend in total mobile net adds and market share, specifically if subscriber numbers were declining when excluding dongles and M2M, and the reasons for any market share drop. He also questioned the B2B strategy, asking about further steps to maintain growth and the penetration in the SME segment, as well as the drivers for connectivity growth within B2B.

Answer

Christian Gebara, CEO of Telefônica Brasil, clarified that mobile market share remains stable, and the company achieved record net adds in Q4 2025 (930,000), coupled with reduced postpaid churn and a 5.8% year-over-year increase in mobile ARPU, emphasizing a focus on attracting, retaining, and growing revenues. For B2B, he highlighted a strong quarter with digital services growing 29.5% year-over-year, now representing 8.8% of total revenues. He noted growing penetration across all segments, including SMEs, with connectivity growth driven by SMEs and advanced data solutions for corporate clients, alongside fiber performance in SMEs and corporate data solutions.

Phani Kanumuri asked about Endava's quarter-on-quarter headcount increase, inquiring if it anticipates second-half demand and how the headcount strategy aligns with AI productivity and macro headwinds for the rest of the fiscal year.

Answer

CEO John Cotterell explained the headcount increase is largely due to the Dava.X Academy, which brings in AI-native leaders and graduates. This investment is part of the 'friction element' impacting margins, as Endava trains new AI-native talent while losing individuals unable to make the shift, resulting in higher attrition expected for another couple of quarters.

Phani Kanumuri asked about Endava's headcount strategy, specifically the recent quarter-on-quarter increase, its anticipation for second-half demand, and how it balances AI productivity gains with macro headwinds.

Answer

CEO John Cotterell attributed the headcount increase primarily to the DARVA Flow Academy, which aims to onboard AI-native leaders and graduates. He explained this investment is part of the strategic shift, leading to ongoing attrition as some roles become less relevant, anticipating a stabilization in a couple of quarters.

Phani Kanumuri asked for management's view on the evolving competition from new and regional operators, such as Brisanet.

Answer

CEO Alberto Griselli acknowledged that smaller regional players are gaining some traction. However, he stated that the impact on TIMB has been limited so far and has not been material enough to warrant a specific change in their competitive strategy. The company continues to monitor the situation but has not seen a significant effect on its customer base.