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3Q20 Results: Telefônica Brasil S.A.
[October 27, 2020]

3Q20 Results: Telefônica Brasil S.A.


SAO PAULO, Oct. 27, 2020 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3 [Common Shares] / VIVT4 [Preferred Shares]; NYSE: VIV), announces its results for 3Q20. 

Record fiber net adds and recovery of prepaid confirms Vivo's sequential operating improvement combined with superior cash generation

 





R$ million

 3Q20

% y-o-y

9M20

% y-o-y






Net Operating Revenues

10,792

(2.3)

31,934

(2.9)

    Net Mobile Revenues

7,163

0.0

20,852

(1.7)

        Net Handset Revenues

710

10.1

1,664

(11.2)

    Net Fixed Revenues

3,628

(6.6)

11,082

(5.1)

Operating Costs

(6,470)

(0.6)

(19,002)

(3.7)

Recurring Operating Costs

(6,470)

(1.5)

(19,078)

(3.6)

EBITDA

4,322

(4.8)

12,932

(1.8)

EBITDA Margin

40.0%

(1.1) p.p.

40.5%

0.5 p.p.

Recurring EBITDA

4,322

(3.5)

12,856

(1.9)

    Recurring EBITDA Margin %

40.0%

(0.5) p.p.

40.3%

0.4 p.p.

Net Income

1,212

25.5

3,478

(6.7)






Capex | Ex- IFRS 16

1,803

(25.8)

5,359

(17.4)

Free Cash Flow after Lease Payments

3,540

34.5

8,901

50.1






Total Subscribers (thousand)

93,718

(0.0)

93,718

(0.0)

Mobile subscribers

76,718

3.9

76,718

3.9

Fixed subscribers

17,000

(14.5)

17,000

(14.5)


 

Fiber-to-the-home broadband customers totaled 3,130 thousand (+34.2% y-o-y), posting record net additions for the third quarter in a row and representing almost 50% of broadband accesses. Overall broadband ARPU increased 17% versus 3Q19, reaching R$77.7.

Mobile market share reached 33.3% in August 2020, 8.7 p.p. more than the second player and the highest level in over 14 years. Postpaid accesses grew 3.9% y-o-y and accounted for 57.3% of total mobile accesses, with a market share of 38.5% in August 2020 and the lowest churn in 5 years.

Fiber-to-the-home and IPTV revenues continue to grow significantly (+56.0% y-o-y and +26.9% y-o-y, respectively) while mobile revenue is showing recovery to pre-pandemic levels, growing 3.3% over 2Q20.

Operating Costs decreased 0.6% y-o-y in 3Q20, due to lower costs with commercial expenses, mainly reflecting the growing digitalization and automation of customer service activities and lower commercial activity.

Recurring EBITDA totaled R$4,322 million (-3.5% y-o-y) in 3Q20, with a recurring EBITDA margin of 40.0%.

Investments of R$1,803 million in 3Q20, focused on the expansion of the fiber-to-the-home network and the quality and capacity of the 4G and 4.5G networks.

Net Income of R$1,212 million in 3Q20, up 25.5% y-o-y. Profit distribution based on 9M20 profit reaches R$2.0 billion.

Free Cash Flow after Leasing payments reached R$3,540 million in the quarter and R$8,901 million in 9M20 (+34.5% y-o-y and 50.1% y-o-y, respectively), as a result of Capex optimization and lower operating, financial and tax payments.

Financial services: launch of Vivo Money, a 100% digital platform, focused on offering fast and simple personal loans to postpaid customers.

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/3q20-results-telefonica-brasil-sa-301161218.html

SOURCE Telefônica Brasil


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