2Q15 Results: Telefonica Brasil S.A.

Jul 29, 2015, 07:32 ET from Telefonica Brasil S.A.

SAO PAULO, July 29, 2015 /PRNewswire/ -- Telefonica Brasil - (Bovespa: VIVT3 [ON = Common Shares] / VIVT4 [PN = Preferred Shares]; NYSE: VIV), announces its consolidated results for the second quarter of 2015. In this quarter, after the conclusion of GVT's acquisition, the information of the new Company is disclosed, showing strong annual increase of the main operating and financial indicators in 2Q15, highlighting the acceleration of revenue and EBITDA growth.

R$ million1

2Q15

%YoY

1H15

%YoY

Net Operating Revenue

10,427.6

5.4

20,792.1

5.3

Net Mobile Revenue

6,212.3

7.0

12,441.5

7.8

Net Fixed Revenue

4,215.3

3.1

8,350.6

1.8

Operating costs

(7,296.1)

6.5

(14,546.1)

6.6

EBITDA

3,131.5

2.8

6,246.0

2.3

EBITDA Margin (%)

30.0%

-0.8 p.p.

30.0%

-0.9 p.p.

Recurrent Net Income

932.9

-1.4

1,404.1

-20.8

Number of accesses ('000)

106,388

3.9

106,388

3.9

Mobile accesses

82,655

4.2

82,655

4.2

Fixed accesses

23,733

3.1

23,733

3.1

1- Financial and operational figures include GVT since Jan, 2014 for a better understanding of the business evolution.

Total accesses reached 106.4 million in the quarter of which 82.7 million in the mobile business and 23.7 million in the fixed-line business fueled by the strong expansion of GVT's accesses.

Continuous growth in postpaid accesses, +13.1% y-o-y in the quarter, having the market share of net additions reached 44.1% in 2Q15. Mobile ARPU recorded y-o-y growth of 0.8% in 2Q15, fueled by the record annual growth of 27.3% in Data ARPU, the highest increase presented in recent years.

Broadband accesses reached 7.1 million in 2Q15 with the FTTX connections exceeding 51% of penetration in the total accesses base.

TV accesses reached 1.8 million accesses. Vivo was the operator with the highest access expansion in 2015 according to ANATEL's data disclosed up to May.

Net operating revenue recorded acceleration, increasing by 5.4% y-o-y in 2Q15.

Net mobile revenue was up by 7.0% y-o-y and by 9.9% y-o-y when excluding the effect of MTR reduction in 2015.

Mobile data and VAS revenue grew by 33.5% y-o-y and accounted for 46% of mobile service revenue in 2Q15.

Net fixed revenue accelerated recording annual increase of 3.1% in 2Q15 (+0.4% y-o-y in 1Q15). Excluding the regulatory effect, this increase was 5.6% in 2Q15 over 2Q14. Worth highlighting the stable annual evolution of the fixed revenues of Vivo stand alone (excluding GVT).

EBITDA totaled R$3.1 billion in 2Q15, 2.8% up on 2Q14. The EBITDA Margin got to 30.0%.

Capex amounted to R$3.8 billion in the 1H15, 18.4% of net operating revenue in the period.

Dividends and IOC declared over the year-to-date profit of 2015 totaled R$1.0 billion.

TELEFONICA BRASIL – Investor Relations Amos Genish Alberto Horcajo Aguirre Luis Carlos Plaster Maria Tereza Pelicano David Av. Luis Carlos Berrini, 1376 – 28th floor – Cidade Moncoes – SP – 04571-936 Phone: +55 11 3430-3687 / Email: 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

Contact:

Telefonica Brasil S.A. Av. Eng. Luis Carlos Berrini, 1376 – 28º andar Sao Paulo - 04571-936 Telefone: +55 11 7420-1172 E-mail: ri.telefonicabr@telefonica.com.br   

SOURCE Telefonica Brasil S.A.



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http://www.telefonica.com.br/ir