1Q20 Results: Telefônica Brasil S.A.
SÃO PAULO, May 6, 2020 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3 [Common Shares] / VIVT4 [Preferred Shares]; NYSE: VIV), announces its results for 1Q20.
Improved customer base mix leading to higher profitability and strong cash generation in this quarter.
Mobile market share of 33.0% in March 2020, the highest since 2006. Postpaid accesses grew 6.6%, accounting for 58.5% of total mobile accesses, with a market share of 39.0% in March 2020.
Broadband accesses reached 6,741 thousand customers in 1Q20 and FTTH had record-breaking 175 thousand net additions, making the fiber subscriber base grow 30.4% y-o-y. Broadband ARPU increased 16.0% versus 1Q19, reaching R$ 72.2.
Net revenues fell 1.4% y-o-y due to lower Mobile Service Revenue, offset by FTTH and IPTV revenue performance. Mobile service revenue grew 0.1% y-o-y reflecting more difficult comparison basis due to early price increase of hybrid plans in 2019.
Recurring operating costs decreased 3.3% y-o-y mainly due to lower commercial expenses due to digitalization and automation initiatives and lower handset sales costs.
Recurring EBITDA totaled R$ 4,431 million in 1Q20, up 1.6% y-o-y, with an EBITDA margin of 40.9% (+1.2 p.p. y-o-y).
Capex ex-IFRS 16 totaled R$ 1,648 million in 1Q20, focused on the expansion of the FTTH network and increased quality and capacity of our 4G/4.5G networks.
Reported net income stood at R$ 1,153 million in the quarter with profit distribution based on the 1Q20 reaching R$420 million.
Free cash flow after lease payments grew 81.9% y-o-y, to R$ 2,120 million in 1Q20, driven by EBITDA expansion, postponement in regulatory tax payments and lower OpEx and CapEx disbursements.
TELEFÔNICA BRASIL – Investor Relations
To download the complete version of the Company's earnings release, please visit our website: http://www.telefonica.com.br/ir
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SOURCE Telefônica Brasil S.A.