3Q21 Results: Telefônica Brasil S.A.

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Oct 27, 2021, 19:01 ET

SÃO PAULO, Oct. 27, 2021 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3; NYSE: VIV), announces its results for 3Q21.

Fixed revenue back to growth and best mobile service revenue annual increase in 6 years, combined with net profit growing 8.5%

*R$ million*	3Q21	3Q20	% y-o-y	9M21	9M20	% y-o-y

Net Operating Revenues	11,033	10,792	2.2	32,532	31,934	1.9
Core Revenue	9,888	9,337	5.9	28,904	27,202	6.3
Mobile Revenue	7,391	7,163	3.2	21,529	20,852	3.2
Fixed Core Revenue	2,496	2,174	14.8	7,375	6,350	16.1
Non-Core Revenue	1,145	1,455	(21.3)	3,628	4,732	(23.3)
Total Recurring Costs	(6,620)	(6,470)	2.3	(19,437)	(19,078)	1.9
Reported Total Costs	(6,203)	(6,470)	(4.1)	(18,457)	(19,002)	(2.9)
Recurring EBITDA	4,414	4,322	2.1	13,095	12,856	1.9
Recurring EBITDA Margin %	40.0%	40.0%	(0.0) p.p.	40.3%	40.3%	(0.0) p.p.
Reported EBITDA	4,830	4,322	11.8	14,075	12,932	8.8
Reported EBITDA Margin %	43.8%	40.0%	3.7 p.p.	43.3%	40.5%	2.8 p.p.
Net Income	1,315	1,212	8.5	3,602	3,478	3.6

Capex \| Ex- IFRS 16	2,151	1,803	19.3	6,346	6,346	18.4
Free Cash Flow after Lease Payments	2,634	3,540	(25.6)	6,701	6,701	(20.5)

Total Subscribers (thousand)	97,424	93,718	4.0	97,424	97,424	4.0
Core Subscribers	88,601	82,627	7.2	88,601	88,601	7.2
Non-Core Subscribers	8,823	11,091	(20.4)	8,823	8,823	(20.4)

The customer base totaled 97.4 million accesses. The mobile customer base reached 82.3 million accesses, the highest volume since 2Q15. Postpaid accesses came to 48.1 million, an increase of +4.1 million in the last 12 months.

Mobile market share reached 33.0% in July 2021, reaffirming Vivo's leadership in the mobile business. Vivo's market share in postpaid reached 36.8% in July 2021.

Fiber-to-the-home customers totaled 4.4 million (+39.2% y-o-y), posting strong net additions in 3Q21. Vivo Fibra is available in 309 cities (+65 cities y-o-y) with 18.3 million HPs (+3.8 million HPs in 12 months). FTTH Revenues reached R$1,137 million (+37.2% y-o-y).

Net revenues grew +2.2% y-o-y due to acceleration in mobile service revenue and return of growth in fixed revenue, driven by FTTH and Corporate Data and ICT. Mobile service revenues registered the highest growth in the last 6 years, with an expansion of +5.7% y-o-y. Total fixed revenue grows again after 4 years, with the highest relevance of the core fixed businesses.

Recurring Total Costs went +2.3% up in 3Q21, as cost base is evolving with a higher revenue from core businesses. Nevertheless, growth in costs remained substantially below inflation due to the continuous digitalization efforts.

Recurring EBITDA totaled R$4,414 million (+2.1% y-o-y) in 3Q21, with a recurring EBITDA margin of 40.0%.

Net income equaled R$1,315 million, (+8.5% y-o-y) with improved operating performance. Interest on Capital declared until September-21 reached R$1.9 billion, representing a dividend yield of 7.4% in the last 12 months. The company also accelerated its Share Buyback Program with 5.6 million shares repurchased during 3Q21.

Free Cash Flow after Leasing payments totaled R$2,634 million in 3Q21, due to the Company's efficient financial management.

Vivo and Ânima (B3: ANIM3) are negotiating a 50/50 joint venture to create a business platform focused on lifelong learning and employability.

TELEFÔNICA BRASIL – Investor Relations
Christian Gebara
David Melcon
João Pedro Carneiro
Gabriel Menezes
+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.