Oi (OIBR3) reduces losses by 97.2% in the 4th quarter and proposes a new grouping of shares

Oi (OIBR3), in judicial recovery, recorded a net loss of R$486 million in the 4th quarter of 2023, a reduction of 97.2% compared to the loss of R$17.149 billion in the same period of 2022.

Routine profit before interest, taxes, depreciation and amortization (EBITDA) was negative at R$114 million in 4Q23, compared to a positive result of R$345 million a year earlier.

The adjusted EBITDA margin reached -5.0% between October and December last year, a decrease of 18 pp compared to the margin recorded in 4Q22.

Net revenue totaled R$2.276 billion in the fourth quarter of last year, a drop of 13.1% compared to the same stage in 2022.

According to the company, the drop mainly reflected the accelerated drop in non-core services – which include revenues from legacy services, wholesale, DTH TV and subsidiaries, which was partially offset by the performance of revenues from Oi Fibra and ICTs in Hi Solutions.

Routine costs and expenses totaled R$2.4 billion in 4Q23,
an increase of 5.2% on an annual basis, due to the reversal of amounts related to income taxes in 4Q22.

The net financial result totaled expenses of R$1.0 billion in 4Q23,
presenting an increase of 59.5% in the annual comparison.

Operating cash flow ended 4Q23 with a consumption of R$300 million, a reduction of 59.5% on an annual basis.

In 4Q23, investments totaled R$186 million, with core operations accounting for 75% of this total.

On December 31, 2023, the company’s net debt was R$23.292 billion, an increase of 22.1% compared to the same stage in 2022.

Oi will propose a reverse split of shares

The Board of Directors approved the submission of a proposal for a grouping of the
total of the common and preferred shares issued by the Company, in the proportion of 10:1, to the Company’s Extraordinary General Meeting (AGE), to be convened in due course on April 29, 2024.