SÃO PAULO, July 29, 2020 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3 [Common Shares] / VIVT4 [Preferred Shares]; NYSE: VIV), announces its results for 2Q20.
Investments focused on the future technologies maintaining solid cash generation in the quarter and maximizing shareholder profitability.
R$ million |
2Q20 |
% y-o-y |
6M20 |
% y-o-y |
Net Operating Revenues |
10,317 |
(5.1) |
21,142 |
(3.2) |
Net Mobile Revenues |
6,618 |
(5.1) |
13,688 |
(2.6) |
Net Handset Revenues |
373 |
(40.9) |
954 |
(22.4) |
Net Fixed Revenues |
3,700 |
(5.1) |
7,454 |
(4.3) |
Operating Costs |
(6,214) |
(5.9) |
(12,532) |
(5.2) |
Recurring Operating Costs |
(6,214) |
(5.9) |
(12,608) |
(4.6) |
EBITDA |
4,103 |
(3.8) |
8,610 |
(0.2) |
EBITDA Margin |
39.8% |
0.5 p.p. |
40.7% |
1.2 p.p. |
Recurring EBITDA |
4,103 |
(3.8) |
8,534 |
(1.1) |
Recurring EBITDA Margin % |
39.8% |
0.5 p.p. |
40.4% |
0.9 p.p. |
Net Income |
1,113 |
(21.6) |
2,266 |
(17.9) |
Free Cash Flow after Lease Payments |
2,772 |
27.3 |
5,362 |
62.6 |
Total Subscribers (thousand) |
92,012 |
(2.5) |
92,012 |
(2.5) |
Mobile subscribers |
74,408 |
0.9 |
74,408 |
0.9 |
Fixed subscribers |
17,603 |
(14.6) |
17,603 |
(14.6) |
Broadband accesses reached 6,554 thousand customers in 2Q20 and FTTH had record-breaking 210 thousand net additions, making the fiber subscriber base grow 31.9% y-o-y. Broadband ARPU increased 17.6% versus 2Q19, reaching R$ 74.5.
Mobile market share of 33.0% in May 2020, 8.6 p.p. more than the second player. Postpaid accesses grew 3.4%, accounting for 57.9% of total mobile accesses, with a market share of 38.9% in May 2020, up 14.2% over 2Q18.
FTTH and IPTV revenues continue to grow significantly (+47.6% y-o-y and +22.3% y-o-y, respectively) while the trend of mobile revenue growth was interrupted by lower commercial activity caused by the pandemic.
Operating costs decreased 5.9% y-o-y mainly due to lower commercial activity and lower commercial expenses due to digitalization and automation initiatives.
EBITDA totaled R$ 4,103 million in 2Q20, down 3.8% y-o-y, with an EBITDA margin of 39.8% (+0.5 p.p. y-o-y).
Capex totaled R$ 1,909 million in 2Q20, focused on the expansion of the FTTH network and increased quality and capacity of our 4G and 4.5G networks.
Net income stood at R$ 1,113 million in 2Q20 with profit distribution based on the 2Q20 reaching R$900 million.
Free cash flow after leasing grew 62.6% y-o-y, to R$ 5,362 million in 6M20.
To download the complete version of the Company's earnings release, please visit our website: http://www.telefonica.com.br/ir
SOURCE Telefônica Brasil
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