Good afternoon, everyone, and thank you for waiting. Welcome to the earnings call for the second quarter of 2025 at Unifique Telecomunicações. I would like to highlight that if you do need translation, this tool will be available on our platform. To access, please select the interpretation button located at the bottom part of the screen on the globe icon and choose your language of preference, Portuguese or English. If you're listening to the earnings call in English, please select the mute original audio in this option. We would also like to let you know that this earnings call is being recorded and will be provided on the IR website for the company, ir.unifique.com.br, where you can also find the full earnings release material. That's also possible on the chat icon. During the company's presentation, all participants will have their mics off.
Soon after, we'll begin the Q&A session. To submit questions, please select the Q&A icon on the bottom part of your screen and write your question to enter the queue. As your name is announced, a request to activate your mic will appear on the screen, and therefore you should activate your mic to submit your questions. We would also like to know that like to know that the information in this presentation are possible statements that could be submitted during the earnings call related to the business perspectives, operational targets and financial targets represent beliefs and assumptions of the company's administration, as well as information that's currently available. Future statements are not a guarantee of performance, involve risks, uncertainties and assumptions that relate to future events, and therefore depend on circumstances that could or not occur.
Investors must understand that, the overall economic conditions, market conditions and other operational factors could affect the future performance at Unifique Telecomunicações and lead to results that differ materially from those listed in such future statements. Today, we have the presence of the following executives in the company, Fabiano Busnardo, the CEO, and Luiz Bogo Junior, which is the Financial Director in Investor Relations. Now I'll pass the phone to Mr. Fabiano Busnardo.
Good afternoon, everyone, and thank you so much for your presence. We're here today to talk about the earnings in the second quarter. In some way, we are keeping up with a good customer satisfaction level. We had growth that was also positive and our margins got better. We've had margins that were a little better in the past, but now we've gradually been able to recover these.
The net income, we've also been able to improve. A very important item for us that we dedicate a lot of energy to every day is to reduce our churn even more. We were able to lower it from the first quarter, from 1.58%- 1.50% now in the second quarter, which is a very significant result for us because this also impacts our customer replenishment costs. Our debt level is also pretty low, but we've been able to reduce it, and that gives us great possibilities to pay out even more dividends to our shareholders. Of course, our priority is the company to continue on investing and modernizing. We have a lot of investments in new hardware and new software we would like to invest in as well. We've also been in a deployment phase of 5G.
We're doing super well. We've been able to accelerate this, and we're building a very robust 5G structure for the near future. We've been really seeing that there are many opportunities in the market for growth, and we will be able to. Now to get into a little bit more details, I'm gonna pass the phone to Luiz Bogo. He presents our main numbers, and then we'll get back into more details.
Okay. Thank you, Fabiano. Good afternoon, everyone. As you're participating in our earnings release for the second quarter of 2025 here at Unifique Telecomunicações. Fabiano has already given you all an overview of our highlights. I would just like to reinforce this because we are keeping up the year with our solid performance in the company.
You can see our net results, BRL 45 million with growth of over 22% compared to the first quarter of this year. I think this is an important advance as it mentions that we have sustainability in our business with our growth strategy. We continue in this macroeconomic environment that's very challenging. We are also included in this boat, let's say. We're still committed to an efficient model with robustness, and a big focus on long-term and value creation consistently. We've also been able to generate value to our shareholders as well.
Now, about profitability, I'm gonna provide more details about this later on, but our recurring EBITDA reached BRL 143.5 million, with a growth of almost 7.5% compared to the previous quarter. This is a recurring EBITDA margin that reached 50.2%. This is once again numbers that really represent our capacity to scale up on the business and with profitability. One point we need to also handle, we always cover in our conversations with shareholders, et cetera, is to talk about mobile phones that have gained more traction as well. In the last quarter, we've added a bit more than 38,000 new accesses, which represents almost 29% growth compared to the previous quarter.
It's in line with our strategy to expand coverage and brand relevance in both states in the south of Brazil where we operate. To wrap up on these highlights, Fabiano has already talked about the rates and the improvement of our churn rates. We have 1.50% and a reduction of 0.8 percentage points in regards to the first quarter of 2025. This indicator reinforces the loyalty of our customers and continues to recognize the quality of our services and proximity with our customers as well. I'll provide more details about this and these different initiatives and the different processes we have been having to be able to improve the churn. We ended the quarter with 3.7 million homes passed and 816,000 connected homes.
Unifique has growth of about 825 in homes connected. In regards to the last quarter, we've been registering growth of 1.2% in our broadband base. The net organic growth of our accesses in the second quarter, we had 9,317 new accesses. In regards to the same period of last year, comparing year-over-year, and then comparing to the first quarter of 2025, we had a slight setback, but that was already considered here in our growth of the base. A slight slowdown, but that is connected to a shift in the company's strategy in the state of Rio Grande do Sul because we really tried to qualify the acquisition channels.
Also, focus on the reduction of delinquency and NPL, as well as we created an exclusive group in Rio Grande do Sul, which is an anti-churn group, and that intends to keep up with the level. With this objective, to keep up with the standard for churns where we operate, here's an important point. Besides the anti-churn group we've deployed, we've also structured a team that is dedicated to managing this indicator. We doubled the amount of people to really take care of this churn issue. We started to focus on the identification of the different causes and implementing some corrective measures, so we could keep up with our base. This is something we started off a while back, but we already see some very visible results.
Just to reinforce what we mentioned before in the beginning, we had a reduction quarter-over-quarter, 0.8%, and on average, right, in the churn. Year-over-year, we also had a reduction because in the second quarter of 2024, we was 1.55%, now we have 1.50% of the churn. When it comes to this performance, we could also say that we're strengthening our stance and our position in leadership in Santa Catarina, where Unifique is a leader in the market share with 20.4% share, and based on the data by Anatel in July of 2025. This result is due to some work we've been implementing continuously to expand our presence where we operate and to strengthen this relationship with our customers.
In Rio Grande do Sul, we're directing some efforts to grow there. In Rio Grande do Sul, we have a market share rate of 4.8%. We have a team and executive board there that's specifically related, really focused on this in Rio Grande do Sul and with our support. They've been working in an intense and structured manner with their team to expand this share, with the focus of consolidating our presence at Unifique in the state and really providing the quality and reliability that Unifique already has to a bigger number in Rio Grande do Sul. This result that we have reinforces this efficiency of our competitive advantage and strategy for organic growth, where we're really focused on a tripod, where we would consider the quality of the network offers and excellence in service.
As a reflex of this positioning, as I mentioned, we, Unifique has been consolidating itself as the main operator for telecommunications in the state of Santa Catarina and a major relevance as well in Rio Grande do Sul. Now we're gonna continue here, heading to the next slide here about the mobile segment. In this segment, we ended the second quarter of 2025 with a little more than 170 accesses, growth of almost 29% compared to the previous quarter. The revenue in the mobile operation advanced 33% compared to the first quarter of 2025, and these results were leveraged basically by the ongoing expansion of our infrastructure, where we've had more and more installed antennas and of course, the increase in the customer base.
To give you a comparison basis or a benchmark of our growth, in December 2024, our coverage for mobile was in 11 cities. By the end of June 2025, we already had 60 cities more, 71 cities, and that was 48% of them in Santa Catarina and 23 in Rio Grande do Sul. We consider this expansion to be relevant considering the very limited time we've been operating in mobile. We're already reaching a population of about 1.7 million people with our own network. When we had our last call talking about the first quarter of 2025, our coverage was about 900,000 people.
To be able to give you more info on these 71 cities with our coverage, 56 of them are part of the 5G auction obligations. This considers an anticipation of these obligations. From these 71 cities, 15 already have more than 30,000 inhabitants. This is a number that reinforces our commitment to expand our operations in areas where there is more population density, guaranteeing more returns on investments. Now, I wanna highlight that from these 170,000 mobile accesses that are registered in the quarter, 56% or a little more than this represent lines that are had portability from other operators. This really reinforces that our name is very strong, and it shows the confidence that customers have towards the quality of our services.
You know just as much as we know that it's a very competitive market for mobile phone services. Another really relevant point I wanna highlight is that 81% of the mobile phone networks were performed in combos where we had other products, and that reinforces the attractiveness of our entire portfolio and the efficiency of our commercial strategy, which has been super efficient, really. Besides all of this, I could tell you that 67% of these lines came from customers that already had other Unifique services. When our team performed the renewal of this, 67% of these renewals came from sales of mobile phone numbers to these customers.
Now, another point, when we looked at the results of the first quarter, and we disclosed this, and Fabiano talked about this launch. In July, we had this important step, with the launch of prepaid mobile phone services, and now we can expand our services to customers and the overall population, really strengthening our presence now in this segment that is the prepaid segment. This model we've already discussed in the past represents about 50% or a little more of the mobile lines in Brazil, and it's really used by consumers that search for flexibility and expense controls. The ticket's a little lower, but it's a ticket that we must consider, and that is why we've launched this offering.
Now, currently this offering, our market division launched this prepaid offering just for our headquarters, but we already have plans to expand gradually into other regions and other channels as well. We're gonna head to the next slide, and we're gonna talk about our financial performance. As Fabiano mentioned, very well. We are very satisfied about these results. We presented a growth of the gross revenue quarter-over-quarter of about 4.9%. The gross revenue of about a little more than BRL 350 million, and this is a performance that was levered by the activation of these new customers that we've been mentioning. We also had the application of some adjustments according to the company's strategy, which helped us have more of a robustness in December.
Now, about the gross profit, we had a growth that reached almost BRL 145 million in this quarter. This is an advance of about 5% compared to the first quarter this year. The recurring EBITDA was BRL 143.5 million, an increase of 7.4% compared to the first quarter of 2025. We had an EBITDA margin of 50.2%, demonstrating that we have capacity to keep up with the profitability even when even with what we've done with mobile operation advances, and the 50.2% really reflects this trend we've already been seeing in 2021.
As you can probably see on our graph, in the second quarter of 2021 to the second quarter of 2025, we've had an EBITDA margin that is always constant and very robust and safe. We can also reinforce the fact that this level of the margin, the EBITDA margin, it's only possible because we've had some rigorous controls in operational expenses. More and more we can see the details of this and take care of the operational expenses. We've been also seeing this in the different cities we're in, and we try to separate the EBITDA per unit in the company, so we can have more specificity or granularity about this information and really have more access to the points that could hinder our EBITDA. Besides this, we also are very concerned with our budget.
We have strong budget controls, and we have a team that is really dedicated and specialized on this. Thanks to this, we've been able to equalize or balance our resource management, directing them to more priority projects, including the expansion of the mobile network. That really helps with our results as well. Now I'm gonna tell you about our debt level, and we always have to be very careful about our rates, and we had a reduction of 13.9% in regards to the prior quarter. Now we've also worked on BRL 319.4 million in the end of June 2025. We keep up with a solid position in our cash levels, BRL 376 million by the end of the second quarter.
This demonstrates our financial health and our capacity to keep on investing in the company's expansions and improving our services, even with strict controls on our debts and low leverage. That really gives us financial safety, right? What we can say is that our debt has a pretty healthy profile, and it's quite extended with 87% of the debt indexed according to IPCA. Besides this, as you mentioned, the aging of the debt becomes greater, and we had a pretty good drop in the aging of the debt from the second year on, which helps us have more clarity and confidence and so that we can preserve and keep up with our capital structure.
After these good numbers are presented, I wanna also talk about the final aspects before we get in and say, look, we continue to have very clear targets about our sustainable growth strategies, and one of them is in our mobile operation. We wanna keep the operation in over 100 cities in Santa Catarina and Rio Grande do Sul, where we can really expand our work and provide connectivity to more people. Another pillar we have also is that we would also like to keep this up sustainably in broadband, focus on the customer's experience with a portfolio of products with quality and the operational excellence, of course, which is probably one of the secrets of keeping up the base and keeping up with this OEM team as well.
Now we talked about our cash flow a bit, and this is one of our purposes. We wanna keep up this cash flow and low leverage because for operation that's so capital-intensive, we need this to sustain our growth and still help generate value to all of our shareholders. Now I also wanna reinforce that the retention, customer retention. With this number we showed just recently where our churn is below average in the sector. One of the best churns we have in our telecom sector. That's due to our commitment with the quality of the services provided and direct work with the churn cases to reverse cases that are impossible. I also wanna say that we keep this commitment to our shareholders' compensation.
We should be distributing profits throughout the year. That's gonna be very important to keep everyone understanding that that is in line with our sustainable returns policy. Finally, in my explanation, I just want to say that we plan to have a CapEx perspective. That's just as what was presented in the previous quarter. Most of this we continue to use for the expansion of our network, our mobile network. We also disclose the fact that we are starting a new business, growing into a new region with power solutions. We acquired some stake in a regional company to expand our portfolio. We're taking advantage of this expertise with this cooperation agreement to reduce our operational expenses, because then we would also be able to have a reduction in electric power expenses.
That's what we had to share today for our presentation. Now, of course, we're open to Q&A at this point in time. Thank you so much, everyone.
Now we're going to begin our Q&A session. We would like to remind you that if you have any questions, you must select the Q&A icon at the bottom part of your screen and write your question to enter the queue. As you're announced, a request to activate your mic will appear on the screen, and therefore, you should activate your mic to submit questions. We would like to ask you to please submit your questions all at once. Now we're gonna head to our first question from César Davanço , the Sell-side Analyst at Santander. We'll open up your mic so that you can perform your question. César, please, you may proceed.
Well, good afternoon, everyone, and congrats on these results once again. I have two questions here. The first about the EBITDA margin. In the past, we were talking about a year of 2025 that would maybe reach the 47% of margins, maybe a little higher. We're seeing the first half of the year being pretty strong, right? What would be the maybe it's not the 47% anymore, but would you imagine maybe like a soft guidance for the annual closing when it comes to EBITDA margins? Then about the commercial changes in Rio Grande do Sul. I wanna understand if this is already pretty much clear, if there's still things that need to advance with this, and if we would see better numbers when Anatel reports the numbers in July.
Hi, César. Good afternoon, and thank you for the question. Well, about Rio Grande do Sul, we were moving in the right direction with our sales, but we didn't have the quality that Unifique normally works with. We had to disengage some sales channels, and we're restructuring this. We had to get back to our credit policies and that's already led to effects in the churn. We've had significant reductions in the churn there. Though we're going through this process there where I'd say it's almost like cleaning up the base that we hope will be a process that ends next month in September. Since we are kind of cleaning out the base, maybe due to some sales that weren't the best quality, that leads to NPL and other issues.
We believe that from September onwards we would have a normalized situation in Rio Grande do Sul, and we hope that will contribute more significantly to the growth of the company. About the margins. The fact is, 2024, we did have a reduction in our margins, and things were really focused on the beginning of the operations for 5G. We carried over quite a bit of expenses, no revenue coming in. We created a budget for 2025 based on the parameters in 2024. When the year started, we were kind of. We didn't really agree with this. Due to the acceleration of the mobile sales that brought in some revenue, we were balancing out the investments. The problem with the mobile investments is not only the CapEx, right?
When you put something in a website, you're bringing a new phone bill, a new lease for land, a new structure. Until you actually sell to customers to neutralize this. There's a curve, right? There's a timeframe, and that's why we're working on this in a gradual process. That way, we can work on the CapEx and bring in the revenue to balance this out. Besides all of this, we also worked on this. This is a constant control for the budget. We started being more rigorous with this. We started questioning some expenses, and then we were able to engage the company to review. We were also able to have an improvement on what we expected as a budget for our reality. That's quite significant.
Of course, there's a limit, right? I think keeping up 50% is an obligation we've taken on, and we believe it's feasible without sacrificing this 5G development, which is still an offending factor for the margin. With the 50.2%, if I were to exclude the mobile, then we would have better margins maybe. Maybe we're losing about 2 percentage points or something like this, maybe a little more. Guys, we are performing an investment in something that's really going well, exceptional quality. I'm absolutely sure that by 2030 we'll be in a position that is a lot more solid and a lot better than what we have today. I still cannot state, César, for sure that because there's still an impact of this improvement.
We started spending less of a structure to perform this replenishment. I still can't let you know about the quantity of combos we've been selling, fiber plus mobile, but I do think that's something that is already starting to weigh in our favor. Besides the direct gains, entering this new mobile segment. Sorry about that. We started having benefits that are collateral and that will most likely the combo guys will see that the churn is smaller, the portfolio is more stable, and we serve really good quality of services with undeniable quality levels, modern equipment, major capacity. It's a price that is very competitive and we're entering the market, which is a service 100%. Of course, we have to have competitive prices. We are having this, of course, but we're very satisfied about this.
Okay, guys. Thank you so much again and congrats on the results.
Now let's head to the next question from Luís Chagas, the sell-side analyst at XP. Luís, please, you may proceed. Our next question is from Leonardo Cintra, the sell-side analyst at Itaú BBA. Leonardo, you may proceed, please.
Good afternoon, Fabiano, Luiz, and thank you so much for taking my questions. Congrats on the results. My first one is about mobile. You already have 170,000 accesses, yet over 14 million in the quarter. Could you talk about the expectation for this revenue contribution, especially when you consider the sale of bundles and how much this would be towards the total when it comes to share?
My second question is more focused on new revenue lines. You talked about how last week you had announced the entrance in the energy sector together with Suscentis. We've also seen other revenue lines and if you could just talk about the strategy a bit for diversifying revenue and getting into this with a new partner in this segment and the impact in OpEx. Just those are the two points on my side.
Well, hi, Leonardo. About mobile, our sales today are very much concentrated in the customer portfolio we already have for fiber and the new fiber sales with this combo. So about 81% maybe of the sales in the quarter were implemented into combos. We should be at about 15% of our customers for fiber today that already have mobile.
This is a significant number, I think, because just a little while ago we started selling, but this year our sales gained more traction and we already have 15% of our fixed base with the product for mobile. That seems pretty significant, right? Because I believe this would have a direct impact in the company's churn. We plan to keep up with this strategy for the fixed mobile convergence. Of course, we also wanna sell the chips, and we've been negotiating with other channels for distribution and sale of chips, and so we can expand this and provide more traction. We want to sell a lot more than what we are selling currently for mobile, but it's all a learning curve.
In regards to the new revenues, we have a specific board or division that's focused on technology and innovation. Their main focus, besides modernizing the company and investing a lot in systems and artificial intelligence, I am sure that we'll have great contributions as well. The guys are really dedicated to placing Unifique at a whole another level technologically. They have another vertical, which is also to develop new products and services so that we can add on to the current customer portfolio we have and how the Unifique brand is has excellent reputation and the loyalty also of customers. Within all of the work we've been doing, we certainly prospected this possibility in the energy market.
We have in the region; it's a company that's small, but with a lot of know-how, incredible know-how when it comes to DG and power trading and desks for the power storage systems and batteries. Unifique will be benefited directly because we'll expand our investments in self-production and power, reducing our bills and improving our results. Besides this, our results, among other points, but just more specifically, we've been able to reduce this already, the free market and purchases in the DG market, so that helped our costs drop a bit. There are even more opportunities still to expand and intensify this reduction even more.
This is really relevant because our customers are gonna benefit from this a lot, so we're setting up a structure to commercialize credits and DG that we can take down and drop down on the same account, taking advantage of the relationship we already have with the customer. We do believe that we will have an increase, and that will help the company. Of course, none of these items in the short term will have an effect in the Unifique numbers that mobile is having already, for example, right? We'll continue to accelerate and grow in mobile. This year we should be finishing the year with maybe about BRL 7 million a month, which would already guarantee about BRL 100 million in revenue next year. Even if we weren't able to sell anything else.
Of course, we're gonna sell more and accelerate our sales even more. We'll see that next year, for example, revenue from mobile will be significant in the numbers at Unifique and with results that are very positive. The technology has advanced a lot. Sometimes the market questions this and is a bit concerned about the revenue in mobile, but because we have a lot of cases in Brazil where we weren't so successful, right? I can assure everyone that that's not gonna be the case, because first of all, we have a lot of synergy with the fixed operation. All the sales we're working on, we haven't hired sales people. We're just taking advantage of the same structure that Unifique already had beforehand.
When we connect, this business is actually verticalized, I think, because we don't have to hire third parties to provide this, which would end up making the operation more expensive. All of the synergy is helping us to have an operation that although it's small, of course, we're being a bit targeted at our costs. We of course need some time to get into more adequate profitability, which is what we want. February last year, for example, we are now in August, and in the past 18 months we've been working in Timbó with 52,000 chips, but now we have 10,000 new chips approved, right? We're close to reaching 20%.
I can guarantee that with 20% of the market share, we've made more money even than fiber, right? That's really good because we have a very lean business. That is really well structured. I kind of mixed the answer a bit because I went back and forth a little bit, but I hope I was able to make myself understood.
Yeah, very clear. Thank you. Just a quick follow-up on the last point. We're looking at this from a very positive perspective, but just about the net debt to EBITDA ratio. If this level of 0.8%, if we can expect some change. If we'd also talk about the reprofiling of the debt to improve the financial results, and I think that will help us a lot.
Well, we don't see this debt growing. Of course, there could be opportunities for inorganic growth. If we understand these can generate value to our shareholders, we could gear up, right? We could take advantage of that. Yes, we do have an appetite for that. We have the economic conditions for this, but now we also need the opportunity to come up and generate value for our shareholders. We're really comfortable in this sense, right? We have so much to invest in, and I don't think it would be the case to reduce this debt even more. I think it's possible. Is it a possibility? Yeah. If we don't have anything else come up, we're always thinking that some other opportunity could come up, right?
We're always keeping our eyes open to inorganic opportunities that could maybe leverage our growth. We didn't try this last year, but that doesn't mean this won't come up, right? We have a structure with excellent growth to be able to work on these investments, and we're gonna keep up with this market.
Great. Perfect, guys.
Let's head to our next question. Luís Chagas, the sell-side analyst at XP. We'll open up your audio so that you can submit your question. Luís, please. You may proceed.
Hey, guys. Can you hear me?
Yeah, we can hear you. Okay, perfect. Great.
Thanks for this opportunity. On my side, I have two questions, actually. The first one is about this topic with inorganics that Fabiano mentioned.
I think you even talked about this on the last call. If you already have something you're studying in the pipeline about M&A, and what's the profile, when it comes to the size of the company and location. The second point is about the fiber churn. The fact is it's a very low churn if you compare with the average in the sector, right? I wanted to understand some points here about the churn, right? How much of the churn or this drop do you attribute to convergence of having the fiber and mobile offering? If you could provide a little more details on the main initiatives that this churn group worked on, right? When it comes to the voluntary and involuntary churns. Thanks.
Hey, Luis. Thanks for your question. About inorganics. You know that we have a company with a relevant history operating in this area. The fact is we continue to be interested in this, of course, close to our area. We're not interested in searching for other regions in the country. We think we would maybe lose a bit of utilization and synergy in this sense. We prefer to maybe focus on a different area that is stronger, that we believe could bring in more solid results to the company. We could maybe think about bigger, smaller companies because we have the capacity to absorb, right? We do have options and conversations, but sometimes there's this issue with the price.
Eventually, maybe we'll advance, and maybe we're active, but of course, we have to be careful to guarantee that this really generates value for the company. Unifique historically has operated with very low churns, and that's basically due to the attention and quality that Unifique offers. We're super concerned here in the company about providing unique services to our customers, and whenever we have problems, we have a very well-defined structure. We've always looked into this with the churns, and maybe from 1.60% or so, then after the pandemic, we reached 2.42% because then we had that boom, and then that setback with the doubling of involuntary cancellations, and so customers weren't able to pay.
We were able to improve this significantly, and we brought in this to the level of 1.6. There's some specific work also when it comes to collection processes to accelerate this process when customers owe and you don't wanna wait too long until you can actually reach the point where you make some decisions. We're speeding up a little more on the inorganic aspect, which has led to some effects, yes.
As you mentioned, the issue with mobile or fixed, we don't have, like, a very certain number to give you, but the impression I have is that in the second quarter, the volume of combos we had started weighing positively to reduce this churn because this 1.50% we've delivered now is probably one of the lowest churns in the history. That's our goal, actually, and we're gonna have to gather the guys and see what we're gonna do, right? Because we reached the target, and now we have to make that challenging a little more, and we're gonna have to lower that maybe a little more to the 0.4%, 0.3%, 0.35%, right? So the guys can have a challenge, right, to improve a little bit more, right?
We're gonna try to improve and to be able to reach levels. Just we would only be able to do this with a fixed mobile combo. It can't be like too outdated technology. If not, customers won't accept that anymore, right? Or like a combo with a bad mobile solution. Customers are also not gonna want that anymore, right? The impression I have is that the level of requirements are going up and the rules are getting tighter. We have fixed with cutting-edge technology that's really up-to-date, as well as mobile with cutting-edge technologies that are really up-to-date. We have a 5G network with modern equipment, standalone 5G and SA to be able to meet all desires.
Customers that are gonna adhere to our services will notice that the services we offer are really unique. Our churn is about 1.98%, 1.97%. It's, like, already a pretty good number, right? Since we are selling a new technology, sometimes the customer has a very old device and that's not compatible with the technology, and then they find out that something doesn't work, and then we sometimes lose that customer, right? They end up going back to their operator, right? Even with this obstacle that is so relevant for us, our churn is still very low. You can imagine that as the guys update their devices every Christmas that goes by, right?
We always see people want to switch their cell phones, and so as the population updates their devices with the new technology we're deploying. That's why I think we have a very positive scenario for our company.
Thanks, Fabiano. Thanks, guys.
Our Q&A session has officially ended, and now we're going to pass the floor to the company for their final comments.
Thanks, guys, for your time and your attention. We brought in results of our second quarter. We're gonna have a very challenging year for sure, but the company has been able to move ahead and has been able to improve results. I'd say that ever since the moment when we got back from the pandemic and we had that boom, it was fantastic, and we had a lot of challenges.
Now year-over-year, we've had an improvement, and this year it seems we'll have a relatively better scenario than what we expected. We're working on this, and we should have a significant growth. This is not easy, right? With the economic activities when we have interest rates of 15% a year. It's a difficult challenge for us, right? It's not under our control. We are very confident in every quarter, and we know we have a lot of control over the situations we're involved in. That gives us the confidence that we have a company that is competitive and it'll continue to be competitive at levels that are more relevant, generating value for our shareholders, and we're very satisfied with our work.
Thank you all, and have a great day.
The earnings call for the second quarter of 2025 at Unifique Telecomunicações is ended, and the investor relations department is available to answer any future questions. Thank you so much for participating. Have a great afternoon.