3Q19 Results: Telefônica Brasil S.A.
SÃO PAULO, Nov. 4, 2019 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3 [Common Shares] / VIVT4 [Preferred Shares];NYSE: VIV), announces its results for 3Q19.
Highest revenue growth in 15 quarters, driven by acceleration in mobile revenues and transformation of fixed revenues mix, coupled with efficient cost and financial management, leading to EBITDA expansion and double-digit increase of free cash flow
Consolidated in R$ million |
3Q19 |
% y-o-y |
Net Operating Revenues |
11,047 |
2.6 |
Net Mobile Revenues |
7,161 |
6.6 |
Net Handset Revenues |
645 |
31.5 |
Net Fixed Revenues |
3,886 |
(3.9) |
Recurring Operating Costs |
(7,051) |
2.5 |
Recurring EBITDA |
3,995 |
2.8 |
Recurring EBITDA Margin % |
36.2% |
0.1 p.p. |
Net Income |
913 |
(52.3) |
Free Cash Flow |
2,187 |
18.6 |
Total Accesses (thousand) |
93,722 |
(3.1) |
Mobile accesses |
73,833 |
(0.8) |
Fixed accesses |
19,888 |
(10.8) |
Mobile market share of 32.3% in August 2019 (7.5 p.p. higher than the second player). Postpaid accesses grew 7.3%, accounting for 57.3% of total mobile accesses, with a market share of 39.8% in August 2019.
Broadband accesses totaled 7,120 thousand customers in 3Q19 and FTTH accesses grew 34.0% y-o-y, with 162 thousand net additions in the 3Q19. Broadband ARPU moved up 11.6% over 3Q18 reaching R$66.3.
Net revenues rose 2.6% y-o-y, reflecting the solid performance of postpaid, handsets and FTTH. Mobile revenues increased 6.6% y-o-y, driven by strong growth in ARPU, postpaid accesses and handset sales. Mobile service revenues climbed 4.6% y-o-y.
Recurring operating costs increased 2.5% y-o-y mainly due to higher expenses related to handset sales, offset by simplification, efficiency and digitalization initiatives. Excluding the cost of goods sold, total costs rose 0.6% y-o-y.
Recurring EBITDA totaled R$ 3,995 million in 3Q19, up 2.8% y-o-y, with an EBITDA margin of 36.2% (+0.1 p.p. y-o-y).
Capex totaled R$ 2,432 million in 3Q19, focused on FTTH and expansion of 4G/4.5G coverage and capacity.
Recurring net income fell 52.3% y-o-y in 3Q19, to R$ 913 million. In the first nine months of 2019, recurring net income reached R$ 3,892 million, up 2.6% y-o-y. Interest on equity of R$ 2,238 million already declared in 9M19.
Free cash flow moved up 18.6% y-o-y, to R$ 2,187 million in 3Q19, driven by EBITDA growth and lower interests, taxes and other financial expenses, partially offset by higher investment volume in the period.
TELEFÔNICA BRASIL – Investor Relations
Christian Gebara
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.
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