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1Q20 Results: Telefônica Brasil S.A.
[May 06, 2020]

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.





Consolidated in R$ million

1Q20

% y-o-y




Net Operating Revenues

10,825

(1.4)

    Net Mobile Revenues

7,070

(0.1)

    Net Handset Revenues

581

(2.9)

    Net Fixed Revenues

3,754

(3.6)

Recurring Operating Costs

(6,394)

(3.3)

Recurring EBITDA

4,431

1.6

    Recurring EBITDA Margin %

40.9%

1.2 p.p.

Net Income

1,153

(14.1)

Free Cash Flow after Lease Payments

2,120

81.9




Total Accesses (thousand)

93,082

(2.0)

Mobile accesses

74,749

1.7

Fixed accesses

18,333

(14.6)


 

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
Christian Gebara
David Melcon
Luis Plaster
João Pedro Carneiro
+55 11 3430-3687 / ir.br@telefonica.com 

To download the complete version of the Company's earnings release, please visit our website: http://www.telefonica.com.br/ir

Cision View original content:http://www.prnewswire.com/news-releases/1q20-results-telefonica-brasil-sa-301053834.html

SOURCE Telefônica Brasil S.A.


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