TIM S.A.

Good morning ladies and gentlemen. Welcome to Team SA 2026 first quarter results video conference call. We would like to inform you that this event is being recorded and all participants will be in a listen-only mode during the company's presentation. There will be a replay for this call on the company's website. After Team SA remarks are completed, There will be a question and answer session for participants. At that time, further instructions will be given.

Hello, I'm Vicente Ferreira, Investor Relations Officer of Team Brazil. Welcome to our earnings call. We will reveal our recent results and the evolution of our strategic plan, then open the floor for a Q&A with CEO Alberto Griselli and CFO Andrea Viegas. Before we begin, please note that management may make forward-looking statements, so please refer to the disclaimer on the screen and on our Investor Relations website. Now, let's review our results.

Hello everyone, I'm Alberto Gritelli, CEO of Team Brazil. In early 2026, we prioritized execution amid rising external volatility and increasingly unpredictable conditions in Brazilian Telecom. The year began with relevant M&A activities, preparation for a spectrum auction, and new below-the-line offers, among other minor news. Despite that, mobile remains rational in broad terms, so much so that operators were able to recover inflation during this first month of the year. For Tim, clearly uplining our priorities has been essential. We aim for disciplined growth and cash flow generation as we advise our strategic initiatives. To summarize, in first quarter 26, we finalized the agreement with V8, are close to completing the iSystem deal, rolled out our annual mobile offer updates, enhanced our new B2B approach, and consolidated our broadband recovery. On top of that, the first quarter confirms our consistency of our financial performance and strengthened BIM's long-term foundation. From first quarter 26 financials, I want to highlight service revenue growth of 6.5% year-over-year, driven mainly by mobile and supported by continued improvement in fixed. Mobile service revenues grew 5.6%, confirming the resilience of our core business. Profitability also evolved positively. A bid that grew at a solid pace and the bid after list increased 7.8%, reflecting efficient initiatives and disciplined cost management. At the same time, operational cash flow grew 16.8%, reinforcing the strength of our cash generation. These results reflect consistent choices around commercial discipline, cost control, and capital allocation. To provide further insights, let's discuss our recent mobile performance. Postpaid remains the main contributor to growth. In the quarter, post-paid revenues increased 7.5% year-over-year, supported by customer-based expansion and disciplined monetization. We continually adjust our go-to-market strategy to achieve balanced growth and profitability, attract suitable customers, manage earn, and offer sustainable propositions. Revenues are still contracting year over year, but since a part of this loss is self-inflicted by pre-to-post migrations, we see for now stabilization in the base of the client as the good news. We continue to work on prepaid offers to better monetize them while improving the customer journey. Our 3D strategy, by network, by offer and by service, continues to drive our consistent performance in mobile. In Best Network, we are advancing network shops in Brasilia and Belo Horizonte, modernizing over 1400 sites and benefiting 3 million customers with the upgraded 5G. These upgrades improve capacity, quality, operational efficiency, and strengthening the foundation of our mobile business under an AI-supported network. Under the software, our Big Brother Brazil sponsorship supported brand engagement and commercial traction during the quarter, translating visibility into tangible business impact. And in their service, the MyTeam app remains central to our digital strategy. The app reached 18.4 million monthly unique users and expanded its role in customer interaction, saves and recharges, contributing to a more efficient service model. Our 3B strategy will continue to be developed to deliver results in the mobile core while we also seek new revenue opportunities through partnerships. At the end of the quarter, we closed a partnership with PicPay the third largest digital bank in Brazil, marking our return to financial services through an ecosystem-based model. This partnership brings together two strong brands and massive rich platforms to build a unique value proposition for clients with the potential to create significant value for both companies. BigPay in green scale with 67 million accounts, 550 billion reais in consolidated TPV, and strong engagement in digital payments. By joining forces, we aim to enhance customer engagement, increase interaction frequency, and create cross-selling opportunities through simple, fully digital journeys, ultimately delivering a more complete and integrated experience. Next, I'd like to turn to broadband and share written developments. In first quarter 26, the 16th has continued to show operational improvement Revenues were up for the second consecutive quarter, supported by ARCO growth and by fourth consecutive quarter of positive net additions. These results reflect better execution, improved sales quality, and a more disciplined commercial approach in selected markets. If broadband is a game of consolidating our recovery, B2B is about acceleration and delivery. As you all know, B2B has become a key pillar of our strategy to diversify revenues and expand beyond traditional connectivity. Our focus continues to be on connectivity-led solutions, particularly networked services and IoT, across verticals such as agribusiness, utilities, logistics and industry. In the quarter, contractor revenues reached approximately 1.1 billion reais, representing 30% year-over-year growth. This performance reflects both new projects and the scaling of existing contracts, supported by our capillarity, technical expertise and disciplined execution. A relevant milestone this quarter was our partnership with Axia. Together, we will implement the first hydropower plant in Brazil with 5G connectivity. This project illustrates how advanced connectivity can support safer operations, higher efficiency, and new digital use cases in critical infrastructure, reinforcing our position in utilities and energy. Another strategic step was the acquisition of V8. This transaction has capabilities in cloud, data, analytics, and digital solutions, along with strong relationships across corporate accounts. By combining V8 expertise with in-scale and connectivity success, we expand our ability to deliver more integrated solutions and accelerate cross-selling opportunities. Since we are talking about technology, I want to give you an update on our artificial intelligence initially. Our AI program is becoming increasingly more transformative for the company, changing the way we do our daily activities, the way we hire and manage our people, and the way we plan and roll out our products. We are adopting agentic AI and other AI-based solutions across the organization to run a range of tasks with varying levels of complexity. Productivity gains are becoming more pronounced. Early results in areas such as IT show gains of above 20% in software development. Faster cycles, lower ET costs, and improved system performance are supporting the first phase of a long-term transformation. Additionally, we are expanding our partnership with Google and Microsoft to deploy AI solutions across the entire organization while managing token usage through the FinOps approach. Looking ahead, our priorities remain clear. We will continue to strengthen our mobile business by improving network quality, evolving our offers, enhancing service, while expanding our ecosystem through partnership. We will sustain operational improvements in broadband, and in B2B, we will continue scaling capabilities through connectivity, digital solutions, and V8 integrations. The first quarter of 2026 demonstrates our unwavering commitment to progress, innovation, and disciplined execution. We are building sustainable values step by step, and we are well positioned to seize future growth opportunities. Thank you for your continued trust and support. Now, let's move to the live Q&A session.

Thank you, Mr. Alvesto. We are now going to start the Q&A session. To ask a question, please click on the Raise Hand button. If your question has already been answered, you can leave the queue by clicking on the Put Hand Down button. Our first question comes from Gustavo Farias with UBS. You can open your microphone.

Hi, everyone. Thanks for taking my questions, too, on my site. So the first one about VA tech and B2B in general. What could we expect on this line in terms of growth going forward? Just a consultation. Is this line already embedded in the guidance for the year? And, well, in general, how are you thinking about B2B, both organically or inorganically going forward? The second question, if you could comment about margins, how you're seeing the pace of margin expansion going forward. So in the quarter, we've seen some headwinds on OPEX. So if you could help us separate what are the recurrent effects from the seasonal or one-off effects, maybe roaming costs, maybe renegotiation of contracts with our companies, it would be very helpful. Thank you.

Hi, Gustavo. So thanks for the question. So let me address the first one, and then I will hand it over to Andrea for the margin expansion. So when it comes to our revenue growth, As we outlined in our strategic plan in the beginning of February, we got three vectors to support our revenue growth going forward. We got clearly the mobile core business, the broadband expansion, and the B2B expansion. So the B2B expansion, the B2B vertical has been growing rapidly. overall over the last years at a double-digit rate. Clearly, our base is relatively small within our total revenues, but the growth has been going forward at a double-digit rate. And we expect this to continue in the coming quarters. Clearly, this year, we have the – we finalized the closing of V8 – And therefore, we have the V8 contribution starting in February. So we have around 40 million already in our numbers for February and March this quarter. And V8 is also on a growth trajectory, and so we expect to contribute to the double-digit growth, but on a larger base. And to your question if this is included in our guidance, yes, the answer is yes, it is. Okay, Gustavo, if it's clear, then Andrea can address the margins for you. Yes, very clear. Thank you.

Hi, Gustavo. Related to the margin, this quarter we have some pressure in OPEX, as you see. We have two major impacts. One is in the interconnection. In the interconnection, we have two impacts. International homing, that's the seasonal impact. We always have this in the first quarter in our interconnection costs. So this quarter is the higher one. The second is in providers. Providers, we mentioned before, we launched the controlling plans with the stream in the beginning of last year, and the cost is a result of the growing of this plan. The second effect is in bad apps. By depth, we have a higher level than the previous quarter. We have more pressure in the by depth. This is related even to B2C and also to B2B, a consequence of our macro environment. And for the second quarter, we expect the continuity to the pressure, especially because we have a price up in the first quarter. Related to the towers, ATC, as we announced in the last quarter, we have this renegotiation with American Towers. This renegotiation impacts several lines. It was a structural negotiation. We're talking about more than 8,000 towers and more than 40 contracts. One of the impacts, we have impacts and the reduction of our debt, reduction of the lease. We also have a reduction, change of the rate. So we have several impacts. One of them is our monoth. In this quarter is related to the deferred revenue, but this is another expense. When we sold our towers to America Tower, around 4,000 towers, we received 900 million reais. This gain was deferred during the period of the contract, around 20 years. When we renegotiated with American Tower, this contract related to the sold also was included. this period was reduced in about two years, in the average of two years. So, with two years less, we have the positive impact of less time to defer this gain. So, this is the impact that we have in this line of other income. We have another impact in the lease, another positive impact in the lease referred to incentives. So, as I mentioned, we have several impacts I'm sorry that was a long explanation, but I don't know if it was clear, but... Yes, very clear.

I can add one point in terms of margin expansion. So, clearly, we are going to expand our margins in the coming quarters. And you have, as Andrea said, something seasonal, something that is more related to the macro environment or the price up, like bad debt. And at the same time, there are a number of initiatives that we are working on, on leases and on costs, to keep optimizing the productivity of our company.

Thanks for the answer. Just a follow-up, if I may, related to how we could think about margins, margin impact, coming from this consolidation of EA Tech, assuming a different margin profile, potentially more dilutive than the overall connectivity business. Is that correct to assume?

Yes, it's correct to assume. So V8 is dilutive in terms of it's not coming with an EBITDA margin like the mobile business, but it's accretive on the bottom line. So at the end of the day, on the EBITDA margin, you have a dilutive effect which is specific of the business. So your assumption is correct. All right, perfect. Thank you all.

Our next question comes from Luis Chagas with XP. You can open your microphone.

Hi, guys. Thank you for taking my question. So, from my side, I have two questions. So, the first one is, how do you perceive the current competitive landscape in mobile? And the second question regards fiber. Your fiber results have been improving sequentially. Would you consider M&A or JVs to accelerate growth in this segment? And how do you see the current environment in terms of M&A view opportunities? Thank you.

So let me start with the competitive landscape. So the competitive, Luis, landscape, it's constructive and on an above-the-line, broadly rational. Of course, there are a number of discussions because, you know, this rationality, it goes up and down. And there was some, let's say, noise in this first two months of the year. But overall, it remained rational. So I think that there are a couple of milestones that happened already and some that need to happen. And so the first one, I think it's a good development, is the price up in pure postpaid in the front book. So just to remember everybody, the pure postpaid remain roughly unchanged during the course of 2025, with the exception of one competitor increased it and two of us didn't do it. And so it's good news that this year, a few weeks ago, we increased our entry price and clearly all the other plans around 10 reais, so we moved from 120 to 130. One of our competitors already implemented the front book adjustment, I think in February, and the third one moved along a few weeks ago, also moving the the entry point from 120 to 125. So this, I think, is a good message in terms of market rationality, and it's above inflation in general. When it comes to the next milestones to look for is the control, so the hybrid plan. So the hybrid plan is something that we did last year at around June, and we are planning to, we are assessing to implement this again this year. for the third quarter, let's say, in a safe mode in terms of hybrid plan. And we would expect that it's something that everybody is considering. And so I got a positive outlook in my mind related to this. On prepaid... I think that we are considering a number of options to make it balanced because if you move up control then there is something to be considered to be done in prepaid. Something is already being implemented on our side below the line and we are looking at opportunities to do this in a more for more approach on the ATL front as well. So this is for the competitive landscape. If it's okay, Luis, I will move to the other one. Yeah, it's okay. Thank you. Okay. So when you move to the fiber, I think that our priority now is to come to the closing of iSystem. That is pretty close. And the integration of iSystem in our operation, this will further support our organic plan because we're going to have control of the network in some key markets, like Rio de Janeiro and Sao Paulo. So this is a short-term priority related to the fiber. So the incorporation of the high-system deal is going to close pretty soon. And in terms of non-organic products, I think that here the question is, we have been analyzing opportunities, or we are analyzing opportunities. It's a mixture between strategic value, commercial value, and the impact on our all P&L and cash flow projections. So we are looking for an accredit deal if this needs to happen. So we are assessing, but there is nothing defined yet. I don't know if Andrea, you want to add something on the, on the broadband? No, it's okay. Luis, good for you.

Yes, thank you. Very clear.

Our next question comes from Maria Clara Infantosi with Itaú VBA. You can open your microphone.

Hi, everyone. Thanks for the opportunity. So I have two questions from my side. The first one is related to AI. It's called our attention, the focus, of your teaching the potential profitability expansion coming from AI and the opportunities in terms of growth in the report. So can you please elaborate more how we should think about the opportunities coming from AI going forward? And the second question is related to the Kickstarter partnership announcement. Can you please elaborate more on how should we think about What is the opportunity here and the potential going forward? Thank you.

With the PICPAY and then we'll hand it over to Andrea for the artificial intelligence in general productivity. So PICPAY is a partnership that fill a spot in our customer platform strategy related to the combination of telco and fintech. So as you guys all recall, we already had an initiative that has been running for years with the previous digital bank. And we consider that as accretive to our revenue and cash flow generation. And that was an equity partners, the peak pay difference saying the fact that we are in a different phase of the market and the partnership is commercial. The idea is pretty simple. So we want to create a value proposition for our customers and pay customers that is better than the standalone value proposition and the cross upsell our customer basis generating revenue growth or commission payments And loyalty, because we know that when we cross upsell different packages to our customers, they tend to be more loyal. This is proved. And at the same time, to develop lower customer acquisition cost channels for people to cross upsell on our customer base and vice versa. So this is the idea behind the partnership. And we're going to work with the two different brands. And so we associated the brands in the value proposition to our customers. And we are looking for a commercial launch in the third quarter of this year.

Hi, Maria Clara. Related to AI Opportunity, as you know, we are working for the past two years. Now we are expanding the adoption of AI rolling out to agents in the key verticals. And we define two priorities, call center and network operation. Network operation is definitely the part of maintaining. And also we are using agents to help some staff parts, like legal areas, human resource, also the fiscal area. And we are now starting to use agents also to collect And so we are seeing the benefits. It's not a game changer, but we are seeing positive impacts. And our expectation is that this continues to improve and improve our productivity. But we are doing, we're very careful because all these initiatives needs capex and we only start the initiatives when the counts proves positive. So I mentioned not any change, but there's a continuous improvement in our productivity. I don't know, Alberto, if you want to.

I think it's okay. Alex, Maria, Clara, some follow-up questions?

Yes. Very clear. Thank you so much.

Our next question comes from Rogério Araújo with Bank of America. You can open your microphone.

Hello, Alberto, Andrea, Vicente, Luisa. Thanks all for the opportunity. I have a couple here. First one is other operating expenses and revenue line where you recognize it begins with American Tower. There is also higher legal provisions of 115 million reais this quarter versus an average of 55 in the past couple of years. If you could please talk about the potential recurrency of these incremental provisions and the reason for that. And second question is regarding leases. Is there a strong potential for further lease renegotiations going forward or most of that has been done? If you could also say Like, for example, American Tower, have you done already all the contracts? Have been renegotiated? Same for IHS. So, if you could talk about that. And also on leases, there is an incentive included in lease payments of 66 million reais this quarter. Will that... amount remain over upcoming quarters, maintaining the level of lease payments, or is this one off and linked to quarterly renegotiations? So if you could also talk a little bit about this recurrency. Thank you so much.

Rogero, let me start with the leases, with a general view, and then we'll pass to Andrea for incremental information on the leases and the other questions. When you look at the leases, basically we are working with three main approaches to keep optimizing our costs. Remembering that the cost, they suffer an increased pressure that is coming from network expansion and inflation. And in order to control this driver of cost increases, basically we are working on three different approaches. The first one is the negotiational approach, like the American Tower one, the deal that we closed with them, the negotiation that we finalized with them. And the second one is the IHS that you mentioned, whereby basically we make on a, we go on a make versus lease approach. And the third one is sharing. with other competitors. And so what is the status on each one of them? When it comes to the negotiation approach, we finalized the negotiation last year and the benefits are appearing from this year onwards. We still have a couple of negotiations ongoing with other partners and This will be information that we'll release in the coming quarters if we manage to finalize the negotiation and the impact is going to be similar in logic to the American Tower one. The make versus lease approach is going to be implemented over time and therefore we substitute leases with CAPEX and the overall economic analysis It is positive for the CAPEX-1, and it's primarily going through the objective of towers in areas where tower companies have less interest because there is less ability to have two tenants, like, for example, some of the regulatory coverage and the B2B segment. And we also developed an ultra-cost solution that optimized our capex investment. And the third one is the more medium-term approach that is related to the sharing. As you know, we are discussing with one of our competitors. We did some progress, but we can enlarge the scope of this agreement, both in terms of number of competitors and the scope within the competitor we are working with. But I would say that this is going to kick off more in the medium term, because it needs time to be executed, because basically you need to optimize and move electronics from one tower to another, so it takes a bit more time. So this is for the general approach in terms of lease control management.

Hi, Rogério. Complementing the lease information that Alberto said, We have a one-off of 65 million payment in lease. This is also a reflect of ATC agreement. As I mentioned before, we have several impacts. So this is a one-off and was in this quarter. What we have with ATC that is recurring is the downside in the lease that we have with them, so this will be a recurring effect. Considering the other income that you asked, so we have a positive one-off that was ATC also, that I explained was the deferred revenue, and we have some impact also in the provision, a provision increase is a normal cost of analysis that we have, and it also is a one-off. you can expect that in the second quarter this line will be, will return the tax that we're not going to have. I don't know if I addressed.

Well, that's very clear. Thank you so much all.

Our next question comes from with HSBC. You can open your microphone.

Hello. Thank you for taking my questions. The first one is on what is the reaction from the customers after you had increased your prices this quarter? Are you seeing an increase in churn? And the second one is regarding the recent 700 megahertz auction. How does that change your competitive scenario in mobile? Thank you.

Let's start with the churn one, Fanny. So as we mentioned in the previous call, we executed the back book prices in between the first quarter, second quarter. So the impact on churn, it's expected. And basically this year we noticed a smaller increase in the voluntary churn that is slightly higher versus the previous quarter, but it's still in the range of 0.8. This is the number that we shared with you guys in previous earning calls. But it was an increase in voluntary churn that then is reflecting also a bit in the context of the macroeconomic in the bad data. So generally speaking, this impact is higher in the first quarter and then tends to phase down in the second quarter. And so this is what we are going to expect going forward. And the end of April is already showing some sign of this trend happening. At the same time, you see that the effect is more pronounced in our post-paying net additions in January. That was a lower number. It was 30K. Then it moved up to 50. In March, it's moving up to 80. We closed April. April is going to be higher than 80. So basically, we are ramping up back to post-price-up impact. When it comes to, this is for the first question, funny. When it comes to the 700 megahertz frequencies, these frequencies sort of crystallized a situation whereby some of our competitors are So this frequency, I don't know if you guys remember, there's already been assigned in secondary use to the small ISP last year. So some of them are already using this frequency to provide voice services or extend 5G services to their customer base. So from a practical perspective, these frequencies are already being used and therefore the the auction crystallized the use from a secondary use to a primary use. As the press has been reported, Connexus is the association of the mobile operators and Telcomp which is the association of the ISP have a number of objections related to the way the auction is being carried out and so there are legal proceedings happening related to the overall auction mechanisms and clear results. Thank you.

To your final. Our next question comes from with Barclays. You can open your microphone.

Hello. Good morning. Thank you for the presentation. I had a few questions. The first one was on energy costs. Now, I understand you do not disclose your energy costs, but obviously there's quite a bit of volatility in some of the prices, at least globally. I also understand that you have long-term agreements. But maybe if you could give us a bit of color in terms of what potential impact we could see if the situation stays as it is or deteriorates. Are you edged? Are you in long-term contracts? That would be helpful. The second question was on power, just a follow-up. Can you clarify if you have caps on inflation for your leases? And the third one was a bit more on D2D. Obviously, we've seen a lot of players launching D2D services across different countries. I think you guys also have an agreement with one of the potential providers. Just wanted to see how interesting you thought this vertical could be in Brazil. Thank you.

So, Matthew, do you want to address the energy and inflation? Yes, and sorry, Matthew, I didn't get your last question.

Yeah, okay, D2D as in direct-to-device, direct-to-cell.

Oh, sorry, satellite, okay, cool. Yeah, yeah, yeah. Yes, okay.

Not D2D.

Let's start with energy. We don't disclose very much the energy cost, but we work with three lines of earnings. We have the normal contract, the open market. Then we have what we call Mercado Livre. That's when you buy a package. And we have the third one that is, how do you say, farms of energy plants for renewable generation. So with these energy plants, we have long-term contracts, and this also is included in our LEED costs. And these energy plants give us are very good again in protecting us to the energy with the open market. In Brazil, we have a lot of impacts related to rains and what we call red flag here because the government that considers this is dire. So the energy plants protect us to this kind of lack of predictability. So we are starting to invest in the energy plan three years ago, and now we have half of our cost of drainage in this kind of plant. That is also one of the pressures that we have needed, but we have a positive impact in the general cost of energy.

Relation to... And Andrea, just to compliment Mattia, there is an important initiative that we launched last year, which is called Outer Generation, whereby we will extend this predictability, this control in a wholesale agreement to a larger proportion of our overall energy consumption. And this project is... in the process of being implemented and so the expectation is going to be live by the end of, basically in the fourth quarter this year. So we're going to be further edged versus potential price increases. Then, yes, there is, sorry, on this there is a gasoline that runs on generators as a backup solution and we made sure that we provided some, let's put it this way, safety buffer for months to come.

Okay, so I got it right. About 50% of your volume consumption, I don't know if it's the cost, but it's basically under the energy plan scheme and that will increase throughout the year, about 50%.

Yes. Related to the tower inflation, all the contracts have inflation rates. We have the impact. What we work very hard, and our goal is always have to at least increase the inflation. Put in other words, we observe the impact of the volume, because we have more towers related to the expansion of our network, but our goal is to increase the usage at the maximum inflation of the year. So we observe the volume driven.

Okay. And as for the satellite D2D solutions, so this is clearly something that we see as interesting in a continental country like Brazil. Because clearly, as of operators, we provide coverage to a limited surface area within the country. And therefore, it's something that is potentially interesting. Now the point is that why from a fixed broadband the product is up and running and it's something that it's already getting share. in Brazil for the same reason of continental coverage. The D2D solution, we understand that in the current format it's a niche value proposition and therefore here I think that the big question is the cost of this sort of agreement versus the benefits that they will deliver to the value proposition. So this is something that we are looking at because today it's basically and if you look at the launches in many markets it's something that is very specific or very segment in remote areas with text like sort of capabilities this is going to change in the years to come so it will become more appealing and therefore I would guess that the cost benefit analysis is likely to change over time makes sense thank you very much

Our next question comes from Marcelo Santos with JP Morgan. You can open your microphone.

Hi. Good morning to all. Thanks for taking my questions. The first question is regarding the higher delinquency. You said that you expect this to continue in the next quarter. Would that prompt a more cautious credit analysis and potentially a slowdown in post-paid ads as you seek to control this? Because we saw the bad debt, we also saw the MPLs, the 1 to 30 days MPLs that had a big increase. So I just wanted to say how you're going to react to this. The second question is a bit more technical. It's about the deferred revenue regarding the renegotiation with ATC. When you look at that line, like in the past, you always had a certain revenue on that line. So it's It's just a part of the 80, 83 million that is known kind of one-offish. Like you're going to continue to have a level, but below, just wanted to understand how this 83 million are going to go forward, given that you had this in the past.

Hi, Marcelo. Related to the debt, as I mentioned, yes, we are seeing more pressure of the debt in this quarter, a consequence of... deterioration of payments of our customers, B2B and also B2C, more B2C. What we have, and I mentioned that we expect the pressure to continue because we have the price up in the first quarter, so as a consequence, as always we have the price up, as a consequence we have bad debt continues. You mentioned another thing about the debt?

On the debt, let me just put another piece of information. So, Marcelo, basically, how we deal with it. So, basically, it's the credit. You were talking about the credit. So, you have a number of different mechanisms to control it, and clearly, the credit analysis is one of them. And then there are also some offer construct you can think of, like relay more on plans on credit cards, for example, on pre-payment. So there are a number of things that we are implementing already and assessing to cope with the current scenario.

Just to finalize on this. Related to the audience, when we sold the towers for American Tower, this gain was around 900 million reais, was deferred during the period. So, each month since 2018, we have around 4.5 million in design. So, this was for 20 years. beginning in 2018. When we made the agreement with ATC, this part of the contract, the contract that relates to the dollars sold, was reduced in around two years. So, this reduction of two years is the impact that we have now. Once that we have two years less, we recognize this around 80 million related to the 24 months that will, because our contracts will end sooner than we expect. So we recognize this in this one of operations. I don't know if I addressed your... So going forward, it should go back to the... 4.2, because we also, the commission some powers, so we will not give any more 4.5, we will be around between 4 and 4.2. So this will continue from, as always. We always have this 13 million impact each quarter related to this line, but this quarter we have 13 million plus around the 87 something.

Okay, crystal clear on the ATC. On the higher delinquency impact on growth, so, Alberto, I understand that you have some options that you don't need to toughen credit analysis, but is it reasonable to say you'd be a bit more cautious in adding, like, could we expect some pressure on ads or we cannot say that?

No, I wouldn't say, no, we couldn't say that. I say we're going to try to be more intelligent and selective. That I would say is rather cautious. So if you look at our net additions, it's a matter of fact it's performing well. So there are a number of initiatives always in place because it's always a fine tunic. Marcello, when you go to the migration or acquisition, in terms of you explore different segments, you explore different payment mechanisms, different offer construct. So basically it's something that is going on and we're going to keep optimizing. Now, of course, the macro is unknown and uncertain, so we need to adjust our approach to the evolution of the macro environment. For example, this disenroller plan at the end of the day can have a positive impact because it can release a bit of pressure on the level of debt of families. And in general terms, what is happening is acquisition is improving bit by bit as we move month over month. So this is something that has been highlighted in the presentation. So when you look at the big broader impact, our acquisition has been improving and this has been driving net additions up in the first quarter, and the churn has been dragging down a bit. And over time, the churn increased due to price up is going to slow down, involuntary, involuntary, and the acquisition are likely to level off. But the acquisition side is improving bit by bit.

Okay, thank you. Thank you very much.

Our next question comes from Silvio Doria with Safra. You can open your microphone.

Thanks for taking my question. I have a question about Fistel. Fistel is going to be discussed at the STF this week. So what's the competition regarding the outcome?

Well, Silvio, we believe that we have, as we always say, a strong legal case. It's good news that the fistel is now to be started to be treated starting next week, the 8th is going to start. We think that the discussion will take some months to articulate and move forward. So what we think as a sector, we have a solid legal case in terms of the modulation of these tariffs related to their objectives. So let's see what comes out. the 8th, where Alexandre Morais will put forward his point of view, and then there will be a discussion that will involve all the ministers there. So we believe that it's going to take some months yet to be addressed, hopefully by the end of the year.

Got it. Thank you.

Our next question comes from Daniel Federle with Bradesco BBI. You can open your microphone.

Hi, good morning, everyone. Thank you very much for taking my questions. The first one is a follow-up on the competitive landscape, but more focused on the hybrid, the controlling segments, that I understand is more relevant for revenue dynamics than the pure post-paid. By the same time last year, two of the three operators had already increased prices, one in February, the other one in the beginning of April. So far this year, no one has changed. Increased price. So I would like to hear your thoughts on why that's happening. That's a very important development for the sector. There seems to be some rationality, but so far no price increase. So hear your thoughts here. And the second one related to clients generated revenue that decelerated from 6.3% growth to 5%. I would like to understand it. if we should understand this as a deceleration trend or that's more volatility and should rebound going forward. Thank you.

So, Daniel, let me go on the first one. So I would say that for the – so my – Let's see, so price up, you're right. They're quite important, especially for control. Not a lot in terms of the revenue they generate for that year, but basically the alignment between front book and back book is something important for the sustainability of the more for more strategy. So this is therefore an important point. And As for us, and then I will give you my reading for the others, as for us, we executed our adjustment last year, roughly in, I think it was June, after Mother's Day. So now we are in a promotional period that Mother's Day, this sort of more formal strategy is likely to happen afterwards. So my view is that In our scenario, current scenario, we are seeing this happening in the third quarter across the board. As for the reason in terms of why the other competitors didn't do it in February, that was something that I mentioned at the beginning. You know, this market repair, the more for more strategy, and this constructive approach and it's already happened by the way in the past they got ups and down right and so uh we already saw ups and down in the past uh danielle he followed the sector very closely so you might remember that one of our competitors a certain point implemented a more formal strategy in control and then it went back again it depends on each company targets strategy so it's not like a linear thing i still think that as a whole my outlook in in terms of this happening in the third quarter, is positive. I think if you ask the same question as we are, guys are going to have a more complete answer. But this is my view in terms of the overall process. It's never been linear in the past, and it's always ups and downs, and my outlook is that this will unfold positively in the following months. At least this is the intention on our side. When it comes to the client-generated revenues, I would say that when you look at our revenue portfolio, you see that we have mobile. Now, we said in February that we wanted to complement with the growth from broadband and the B2B. This is happening. And we always say that mobile is hinged upon post-paid growth in terms of ARPU and customer base. and to a large extent, a lower deceleration of prepaid, let's put it this way. Nothing of this is changed. What is changed in this quarter, and you see that everything is accretive, mobile, product, B2B, and broadband, and when it comes to the mobile in specific, we always say that the almost double digit would have come down to a higher middle digit. And this is basically what is happening. So the mechanics in the engine remain the same with a slightly different intensity. Very clear. Thank you very much, Sebastian. Yeah, I got it all right? Okay.

Ladies and gentlemen, without any more questions, I am returning to Mr. Alberto Griselli for his final remarks. Please, Mr. Alberto, you may proceed.

So, guys, thank you all for joining today's video call. I want to thank the tireless efforts of our team for the consistent results and solid start of 2026. The environment is a bit more volatile, so we focus on execution as a critical element to our strategy. I look forward to meeting all of you in the coming days on the one-to-one and group meetings. Thank you, everybody.

Thus we conclude the first quarter of 2026 conference call of Team SA. For further information and details of the company, please access our website, team.com.br.ir. You can disconnect from now on. Thank you once again.