Light (LIGT3) Q3 2024 earnings summary

Executive summary

• Judicial Reorganization advanced with payment to 30,000 creditors up to BRL 30,000, strong demand for convertible debentures exceeding plan limits by 50%, and approval by 99.44% of bondholders, with UK and US court ratification.

• Consolidated net income reached BRL 157.5 million in Q3 2024, reflecting improved operational performance and cash generation.

• Robust consolidated cash position of BRL 2.4 billion at September 2024, up over BRL 300 million from December 2023.

• Focused on operational transformation, customer orientation, and efficiency, with improved collection rates and cash management.

• Positive results across all group companies, with significant operational and financial improvements.

Financial highlights

• Consolidated net operating revenue for Q3 2024 was BRL 3,717.3 million, up 6.0% year-over-year; 9M24 net operating revenue reached BRL 14,381.3 million, up 5.1%.

• Adjusted consolidated EBITDA rose 15.5% year-over-year to BRL 597.7 million in Q3 2024 and 26.9% to BRL 2,149.9 million in 9M24.

• Distribution Adjusted EBITDA for 9M24 was BRL 1,194 million, a 26.5% increase year-over-year.

• Net income for Q3 2024 was BRL 157.5 million, reversing a loss of BRL 10.9 million in Q3 2023; 9M24 net income was BRL 255.2 million, compared to a loss of BRL 5,672.2 million in 9M23.

• Financial expenses decreased 64.6% year-over-year in Q3 2024, mainly due to the reversal of interest on paid creditors and favorable exchange rate effects.

Outlook and guidance

• New financial structure and reprofiled debt expected to reduce short-term cash flow pressure, extend payment terms, and lower financial costs.

• Results of the restructuring and operational improvements to be reflected from Q4 2024 onwards.

• Next steps include amending existing securities and delivering new debt instruments to creditors.

• Ongoing focus on loss reduction, default management, and preparation for high-demand periods.

• Continued investment in loss reduction, service reliability, and network modernization.