3Q18 Results: Telefônica Brasil S.A.

SAO PAULO, Oct. 30, 2018 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3 [Common Shares] / VIVT4 [Preferred Shares]; NYSE: VIV), announces its results for 3Q18. 

Solid evolution in postpaid and FTTH, combined with digitalization and simplification initiatives, lead to 35.9% recurring EBITDA margin in 3Q18 and record accumulated net income in the year, reaching R$ 7.4 billion, +140.7% y-o-y in 9M18

Mobile Market share expansion, reaching 31.8% in September 2018 (+0.8 p.p. y-o-y). Mobile Postpaid accesses increased 10.5% y-o-y, reaching 41.1% of market share in September 2018 (17.9 p.p. above the second player).

Broadband accesses totaled 7.5 million customers in 3Q18 (+0.3% y-o-y), with UBB connections already accounting for 65.8% of the base after growing 9.9% y-o-y (with 167 thousand FTTH net additions in 3Q18 – record level of FTTH net additions in a quarter).

Broadband ARPU recorded y-o-y growth of 13.7% in 3Q18 reaching R$59.4, influenced by the evolution of the ultra-broadband customer base.

Net Operating Revenues decreased 1.0% in 3Q18 over 3Q17, but grew 0.6% in accumulated trends.

Net Mobile Revenues rose 1.8% y-o-y in 3Q18. This growth was mainly driven by the expansion of Data and Digital Service Revenues (+8.2% y-o-y) and by higher Net Handset Revenues (+72.4% y-o-y).

Recurring Operating Costs fell 4.2% in 3Q18 versus 3Q17 (LTM IPCA +4.5%), driven by digitalization and simplification initiatives.

Recurring EBITDA totaled R$3.9 billion in 3Q18, 5.3% up on 3Q17, reaching a solid Recurring EBITDA margin of 35.9% (+2.1 p.p. y-o-y), fueled by the increase of Net Mobile Revenues and by our remarkable cost efficiency.

CAPEX amounted to R$2.4 billion in 3Q18, mainly focused on improving network capacity and quality by increasing 4G/4G+ coverage and FTTH roll-out, that allowed us to launch 16 new cities with this technology in the first nine months of the year.

Recurring Operating Cash Flow (Recurring EBITDA – Capex) reached R$5,289.7 million in 9M18, slightly lower than the same period in 2017 due to the higher level of investments in the first nine months of 2018. Free Cash Flow from Business Activities rose 6.4% in 9M18, reaching R$4,846.8 billion so far this year.

Net Income (Reported) totaled R$3.2 billion in 3Q18 (+159.9% y-o-y), reaching a record-level of R$7.4 billion (+140.7% y-o-y) in 9M18, on the back of extraordinary judicial gains registered in the quarter and solid EBITDA expansion.

TELEFÔNICA BRASIL – Investor Relations
Eduardo Navarro
David Melcon
Luis Plaster
João Pedro Carneiro
+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 Telefônica Brasil S.A.

Related Links

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