Christian Gebara: So, I will take this one, Marcelo. Thank you for the question. Regarding CapEx, we are not giving a number for the year. I think what I want to highlight and regarding the CapEx intensity reduction that we mention is that in 2022, last year, I think we highlighted that we had an extraordinary year, because we had to integrate the Oi customer base, and we had some of the auctions obligations that impacted the CapEx that was higher, now that was 9.5% that we had in 2022. And then we said that in 2023, our CapEx would reach a maximum of R$9 billion and if your stand was R$8.96 billion. That’s the reality of the CapEx. And if you look the intensity over sales, we went in 2022 19.8% and ended 2023 17.2%. That’s the trend that we see going down, CapEx intensity over sales, we’re not giving a number, but we are giving like this trend that is going to be, negative in the sense of reducing CapEx over sales.
Here, the impact of growing sales as well, that’s also benefiting and we are also doing all you just described, reaching 29 million home passed by the end of this year. That’s the plan that we have for the year. We continue expanding 5G. We continue to connect customers over the network. We had like the net adds of 700,000 customers in fiber, now reaching 6.2 million customers connected with Vivo Fiber by the end of last year and we continue to be very attractive commercially, and responding to the demand that we have. So that’s more or less the highlight that we have for the CapEx, and then if you have additional question, I reply. Regarding the margin, we are not talking about the EBITDA margin. I think also some of your colleagues, also gave a very good report on operating cash flow margin.
That’s our focus here, because we are combining services with higher margin with others, with lower EBITDA margin than the digital service that I described before, but with no CapEx involved. So I hear what I think we just highlighted in this call, as well is that we went from an operating cash flow margin of 20.3% in 2022 to 23.7% in the end of 2023. So we have the objective of continuing to grow revenue and EBITDA in absolute numbers, and also the objective of improving operating cash flow margin.
Marcelo Santos: Okay. Thank you. Very clear.
Christian Gebara: Thank you, Marcelo.
Operator: Our next question comes from Eduardo Rubi from UBS. Please, Mr. Rubi, your microphone is open.
Eduardo Rubi: Hi. Good morning, everyone. Thank you, Christian, David, João. One question from my side. We saw cash leasing expense have risen quarter-over-quarter, but there was a reduction looking year-over-year. Could you give some more color on this number going forward, considering negotiation with contracts with towers, please?
David Melcon: Hi, Eduardo. Thank you for the question. Look, we expect IFRS 16 debt related to the CapEx under control. So what we are focusing on this year, we have renegotiated the sites acquired from Oi that, we have canceled 70% of those 2.8 thousand that were acquired. So we are – keep analyzing opportunities to also to reduce this IFRS 16. So for example, the network sharing with team is something that is bringing efficiencies to reduce infrastructure costs and also on. We keep exploring alternatives to optimize both the monetary cost, through the negotiation with the tower company, but as well as being more efficient on the deployment of the new sites that we are currently doing around 5G deployment. So this is – I cannot – we cannot give you what – any guidance on what the number is going to be. But what I could say, this is very relevant for us. So it’s under control and we are optimizing on a quarterly basis.
Eduardo Rubi: No, that’s very good. Thank you very much.
David Melcon: Thank you.
Operator: Our next question comes from Vitor Tomita from Goldman Sachs. Please, Mr. Tomita, your microphone is open.
Vitor Tomita: Hello. Good morning, all. And thanks for taking our questions. Two questions from our side. The first one is on broadband. If you could give us an update on how you are seeing competition in the broadband market? And if you are already seeing some reduced aggressiveness from broadband competitors? And my – our second question would be on M&A. If you have any updates on M&A strategy for the fiber segment considering Oi and other potential targets that might be on the table right now? Thank you.
Christian Gebara: So Vitor, yes, the fiber market continue to be very competitive. Now as you know, we have like thousands of players in the different cities of the country and we have like different type of competitors depending on the geography. It didn’t stop us to continue with our strong strategy of deploying home pass, so that was a good year that we increased the deployment. But more importantly, I think Vivo was the leader in that part of the market. So it was positive for us as well. So, we increased our customer base and more than 700,000 customers during this period. At the same time, we were also able to increase ARPU that also show that we are a very rational in our strategy. We increased ARPU with like higher speeds, and also blending with the connectivity, digital services.
Now I also described during my speech that we have been very strong in deploying OTTs together with fiber and mobile, so that’s also improving our profitability. Also highlighting here that our convergent offer, mobile plus fiber, was also a great hit of this year. So increasing more than 2.3 times, the number of customers already in this plan that we call Vivo Total. So competition will be there. But I think we are like standing out for quality, for channel, for support and of course for combining more services to the same customer. Regarding M&A, I recall, there is something like there’s something new about like targets that are on sale, or trying to be bought by anyone. So, we are always looking at everything that, is the market being the leader, having the network that we have and having the number of customers, and revenues coming from this business, of course, we are always checking the available asset in the market.
