Telefonica Brasil said it estimates the assets acquired from Brazilian telecom Oi Movel will create 5.4 billion reais ($1.09 billion) in value.
Telefonica, which operates in the country under the brand Vivo, said the figure refers to efficiencies in costs and investments and already accounts for incorporation costs, a new report in Reuters said.
Telefonica said it expects earnings before interest, taxes, depreciation and amortization (EBITDA) and operating cash flow margins to be above 70 percent.
Meanwhile, Italy’s Telecom Italia (TIM) is expecting $4 billion boost from the acquisition of Oi assets, TIM said earlier.
Telefonica expects the complete migration of Oi Movel’s clients to its base to take place until the end of the first quarter of 2023.
Telefonica agreed to buy Oi’s mobile operations in an auction in late 2020, when it made a joint bid of 16.5 billion reais with rivals TIM and Claro, a subsidiary of Mexico’s America Movil.
