The following is a summary of the Oi S.A. (OIBZQ) Q4 2023 Earnings Call Transcript:
Financial Performance:
Oi S.A. reported Q4 revenue of R$2.3 billion, marking a 13.1% reduction compared to the previous year.
The company's core revenue accounted for approximately 70% of the total revenue, amounting to R$1.6 billion.
Through a main growth lever, the company's fiber revenue saw a 1.9% YoY increase, reaching R$1.1 billion in Q4.
There was an 8% reduction in operating costs and investments made by the company.
Business Progress:
Oi S.A. focused on operational improvements, debt restructuring and legacy cost management, helping the company stay stable.
The company managed to expand its fiber business, leading to an increase in connectivity by 111,000 in 2023.
Oi concluded the negotiations with the CSX Consensus Commission, further aiding the company's restructuring of the business.
A potential 70% reduction in financial debt and 80% reduction in take-or-pay credit shows progression in the company's restructuring attempts.
The operating improvements focused on fiber and digital services, causing a 2% increase in fiber revenue due to customer base expansion.
Looking forward, Oi expects a partial decision in the ongoing arbitration within four months and a final decision between 12 to 24 months.
In an attempt to manage stock volatility, the company initiated a 10:1 reverse stock split.
Oi plans to publish a new version of the reorganization plan which will be put to vote at a creditors' meeting in April.
Despite challenges and pressures, operational improvements are expected in the acquisition processes and payment and collection management in the first half of the year.
More details: OI SA SPON ADR EACH REP 0.5 ORD (P/S) IR
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