The Company was created with the goal of establishing a consolidating platform in the fixed broadband internet sector in Brazil, focusing mainly on secondary markets.
Superior broadband technology with ample capacity available
Our broadband structure is composed predominantly of a FTTH network with ample capacity available (utilization rate of 36%¹ and penetration rate in homes passed of 33%¹) for the growth of our subscriber base. Our standard broadband offer for new residential customers is a download speed of 75Mbps, which is at the top of the standard for residential offers in our markets.
Scalable platform well positioned for market consolidation
The broadband market is highly fragmented, which provides us with a large number of potential targets for acquisition (more than a thousand companies). We believe that we have been able to develop a solid and strong reputation in the market as a serious buyer, with a history of sourcing potential targets, negotiations, closings, integrations and growth in acquisitions. In addition to completing acquisitions, we were able to successfully integrate the acquired companies, achieving revenue growth and EBITDA for the acquired companies.
Focus on less competitive markets
The profile of such markets, for which we optimize our strategy and operations, is different from that in large cities and results in more attractive operating results for our businesses and shareholders, due to the more favorable competitive environment than the largest metropolitan markets.
Top 1 in broadband market share
Our broadband market share in the market in which we operate is divided into: 46% Rio Grande do Norte and Paraíba (“RN / PB cluster”), 22% Ceará (“CE cluster”) and 46% São Paulo and Minas Gerais (cluster “SP / MG”). We believe that our brands join significant recognition in our markets and are associated with high levels of service and good local perception. The combination of the mentioned factors, allows us to establish and defend a strong position in the regions where we operate.
Balanced capital structure focused on creating value for our shareholders
We focus on products and customers that maximize cash flows and provide the best opportunity for profitable growth and return on capital employed. Our management’s policy is to invest in areas that have the potential to achieve an internal rate of return (IRR) of more than 30%.
Diversified customer base with significant growth potential
We believe that our residential and B2B data services put us in a position for attractive growth today and in the future. We expect to generate continuous growth, using our infrastructure and current penetration to offer higher value-added services (such as VPN, cloud support, email, security and class 5 voice), customized solutions and higher broadband speeds when compared to others providers in our markets. In addition, we aim to expand our corporate service offering to attract small and medium-sized businesses. With an extremely high contribution margin, the B2B broadband business has a high return on invested capital.
Resilient business models
The demand for broadband services has been resilient during the period of economic uncertainty and pandemics, which we believe will turn into a higher level of sustainable growth in the demand for data services, both by residential and corporate consumers. During these periods in 2020, we reached record gross sales of 33 thousand new subscribers.
Superior levels of customer satisfaction
We believe in offering the highest quality service to our customers, reflected in our leadership position in the ANATEL customer satisfaction ranking in Brazil. In addition, we offer a complete package of products, including data, pay TV and fixed telephony. We aim to carry out more than 90% of our technical visits within 3 hours from contact with the customer.
Professionalized management supported by a private equity fund
Our professional management is composed of senior executives with extensive experience in our sector. With an average experience of more than 15 years in the sector, our team has a robust knowledge of the sector, competitive dynamics, and global technology trends. Our platform is supported by an international private equity fund that added to our management team the importance of disciplined capital allocation as a way to maximize returns as well as best governance practices.
¹Percentage referred to june/20.