SAO PAULO, July 26, 2016 /PRNewswire/ -- Telefonica Brasil - (Bovespa: VIVT3 [Common Shares] / VIVT4 [Preferred Shares]; NYSE: VIV), announces its results for the 2Q16. In 2Q16, Vivo continues to execute its data centric strategy, which combined with the capture of synergies and efficiency initiatives led to revenue growth acceleration, margin expansion and solid cash generation in 2Q16.
| Consolidated in R$ million |
2Q16 |
% y-o-y |
6M16 |
% y-o-y |
| Net Operating Revenues |
10,510.0 |
0.8 |
20,941.4 |
0.7 |
| Net mobile revenues |
6,293.7 |
1.3 |
12,506.6 |
0.5 |
| Net fixed revenues |
4,216.3 |
0.1 |
8,434.8 |
1.0 |
| Operating costs |
(7,309.7) |
(0.4) |
(13,952.6) |
(4.7) |
| Recurring Operating costs* |
(7,208.5) |
(1.8) |
(14,364.9) |
(1.9) |
| EBITDA |
3,200.3 |
3.7 |
6,988.8 |
13.7 |
| EBITDA Margin % |
30.5% |
0.9 p.p. |
33.4% |
3.8 p.p. |
| Recurring EBITDA* |
3,301.5 |
7.0 |
6,576.5 |
7.0 |
| Recurring EBITDA Margin %* |
31.4% |
1.8 p.p. |
31.4% |
1.8 p.p. |
| Net income |
699.5 |
(23.2) |
1,917.7 |
42.3 |
| Number of accesses (thousand) |
97,058 |
(9.1) |
97,058 |
(9.1) |
| Mobile accesses |
73,304 |
(11.3) |
73,304 |
(11.3) |
| Fixed accesses |
23,754 |
(1.5) |
23,754 |
(1.5) |
| (*) Adjusted by the provision for organizational restructure in 2Q16 in the amount of R$ 101.2 million and by towers sale in 1Q16 in the amount of R$ 513.5 million. |
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Leadership in the postpaid segment, with continued growth (+6.9% y-o-y in 2Q16), while the share of net additions came to 37.0% until May 2016. Postpaid market share stood at 42.3% in May (+0.7 p.p. y-o-y).
Mobile ARPU recorded y-o-y growth of 15.9% in 2Q16, fueled by rationality, higher postpaid mix and growth in Data ARPU (+40.0% y-o-y), which corresponded to 55.7% of total ARPU.
Broadband accesses totaled 7.2 million in 2Q16 (+2.4% y-o-y), with FTTx connections accounting for 55.3% of the base, with 10.0% growth y-o-y. Broadband ARPU increased by 7.4% y-o-y in 2Q16.
Pay TV accesses came to 1.8 million in 2Q16, 1.3% down y-o-y, while Pay TV ARPU increased 12.3%, reflecting the Company's strategy of focusing on higher-value customers.
Net operating services revenue grew 1.6% in 2Q16 over 2Q15 (+3.9% y-o-y excluding regulatory effects), accelerating growth in relation to the 1Q16.
Mobile service revenue acceleration to 2.6% y-o-y in 2Q16 (vs 0.4% y-o-y in 1Q16). Excluding the regulatory impact in 2016, this line increased 4.7% over 2Q15. Data and VAS revenue posted increased growth of 24.0% y-o-y in 2Q16.
Net fixed revenue remained stable in 2Q16 over 2Q15 impacted by regulatory effects. Excluding the reduction in fixed to mobile (VC) and local/national long-distance fixed interconnection (TU-RL/TU-RIU), this increase was 2.8%. Ultrabroadband and TV revenues continued to post strong growth of 19.9% and 13.9% y-o-y, respectively in 2Q16.
Operating costs fell 0.4% y-o-y in 2Q16. Excluding the effect from the provision for corporate restructuring, this reduction was 1.8%, reflecting the capturing of synergies and execution of efficiency initiatives.
Recurring EBITDA increased by 7.0% y-o-y, to R$3.3 billion, with EBITDA margin of 31.4% (+1.8 p.p. y-o-y), fueled by the capture of synergies and efficiency initiatives.
Net income of R$1,917.7 million in the 1H16, 42.3% up on 1H15.
Second-quarter investments amounted to R$1.8 billion, accounting for 16.8% of net operating revenue in 2Q16. Recurring EBITDA-Capex grew by 49.7% over 2Q15, with a strong expansion in FCF (+59% y-o-y).
Success in the execution of synergies guarantee capture of 55% of NPV of best case scenario. Capturing of synergies above estimates and additional opportunities identified during the integration process point to an enhanced trending NPV of R$ 25 billion.
TELEFONICA BRASIL – Investor Relations
Amos Genish
David Melcon
Luis Plaster
Maria Tereza David
+55 11 3430-3687 / [email protected]
To download the complete version of the Company's earnings release, please visit our website: http://www.telefonica.com.br/ir
SOURCE Telefonica Brasil S.A.
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