SÃO PAULO, Oct. 31, 2023 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3; NYSE: VIV), announces its results for 3Q23.
Double-digit net income and free cash flow growth in 9M23, combined with strong shareholder remuneration
R$ million | 3Q23 | 3Q22 | % Y-o-Y | 9M23 | 9M22 | % Y-o-Y |
Net Operating Revenue | 13,112 | 12,199 | 7.5 | 38,565 | 35,382 | 9.0 |
Core Revenue | 12,335 | 11,256 | 9.6 | 36,120 | 32,380 | 11.6 |
Mobile Revenue | 9,279 | 8,480 | 9.4 | 27,025 | 24,172 | 11.8 |
Fixed core revenue | 3,056 | 2,776 | 10.1 | 9,095 | 8,209 | 10.8 |
Non-core Revenue | 777 | 943 | (17.6) | 2,445 | 3,002 | (18.5) |
Total Costs | (7,573) | (7,242) | 4.6 | (22,999) | (21,335) | 7.8 |
EBITDA | 5,539 | 4,957 | 11.7 | 15,566 | 14,047 | 10.8 |
EBITDA / Net Revenue Margin | 42.2 % | 40.6 % | 1.6 p.p. | 40.4 % | 39.7 % | 0.7 p.p. |
Net Income | 1,472 | 1,440 | 2.2 | 3,429 | 2,959 | 15.9 |
Earnings per Share (EPS) | 0.89 | 0.86 | 2.9 | 2.07 | 1.77 | 16.6 |
CAPEX ex-IFRS 16 | 2,626 | 2,586 | 1.5 | 6,665 | 7,041 | (5.3) |
Operating Cash Flow (OCF) | 2,913 | 2,371 | 22.9 | 8,901 | 7,006 | 27.1 |
OCF / Net Revenue Margin | 22.2 % | 19.4 % | 2.8 p.p. | 23.1 % | 19.8 % | 3.3 p.p. |
Free Cash Flow | 1,918 | 1,839 | 4.3 | 7,556 | 6,473 | 16.7 |
Core Revenue / Net Revenue | 94.1 % | 92.3 % | 1.8 p.p. | 93.7 % | 91.5 % | 2.1 p.p. |
Non-core Revenue / Net Revenue | 5.9 % | 7.7 % | (1.8) p.p. | 6.3 % | 8.5 % | (2.1) p.p. |
Total Subscribers (Thousand) | 111,582 | 111,688 | (0.1) | 111,582 | 111,688 | (0.1) |
Core Subscribers | 104,701 | 104,070 | 0.6 | 104,701 | 104,070 | 0.6 |
% / total accesses | 93.8 % | 93.2 % | 0.7 p.p. | 93.8 % | 93.2 % | 0.7 p.p. |
Non-core Subscribers | 6,881 | 7,618 | (9.7) | 6,881 | 7,618 | (9.7) |
% / total accesses | 6.2 % | 6.8 % | (0.7) p.p. | 6.2 % | 6.8 % | (0.7) p.p. |
Strengthening of leadership in mobile with 98 million accesses. In the postpaid segment (ex-M2M), market share at the end of August/23 was 43.6% (+1.9 p.p. YoY), while churn in 3Q23 remained at historically low levels, at 1.09%. The FTTH network is currently present in 439 cities (+59 cities YoY) with 25.1 million homes passed (+12.9% YoY) and 6.0 million homes connected (+13.5% YoY).
Net revenues continue to grow above inflation (+7.5% YoY) driven by mobile service revenue (+9.0 YoY). Mobile Service Revenue growth was mainly boosted by Postpaid Revenue (+12.7% YoY), which was positively impacted by the customer base increase, annual price adjustments and churn at historic low levels. Fixed revenue maintained its positive performance, increasing +3.1% YoY, driven by FTTH revenues (+15.1% YoY) and Corporate Data, ICT and Other revenues (+14.7% YoY).
EBITDA grew +11.7% YoY, with a margin of 42.2% (+1.6 p.p. YoY), due to strong performance of core revenues (+9.6% YoY) and cost control (+4.6% YoY) in the quarter, as well as the positive net effect of R$175 million in 3Q23, related to the post-closing price adjustment agreement from the acquisition of part of Oi Mobile's assets.
In 9M23, Operating Cash Flow totaled R$8,901 million (+27.1% YoY), with a margin of 23.1% (+3.3 p.p. YoY) over net revenue. Investments totaled R$6,665 million (-5.3% YoY) or 17.3% of revenues (-2.6 p.p. YoY), maintaining the guided Investment level below R$9 billion in 2023.
Net income reached R$3,429 million in 9M23 (+15.9% YoY). Shareholder remuneration declared up to October 2023 hit R$2,870 million, of which R$1,736 million were in interest on capital, R$827 million in dividends and R$308 million in share buybacks. In September 2023, ANATEL approved the request for prior consent to allow the Company to reduce its capital stock in one or more events, subject to the management's assessment, in a total amount of up to R$5 billion.
New sources of revenue (Digital B2B, Financial Services¹, Video + Music OTTs and Electronics) are growing fast and gaining relevance in our top-line mix. Digital B2B Revenues totaled R$3.2 billion in the LTM (+28.2% YoY), with important upside potential.
TELEFÔNICA BRASIL – Investor Relations
Christian Gebara
David Melcon
João Pedro Soares Carneiro
Gabriel Figueiredo Menezes
[email protected]
To download the complete version of the Company's earnings release, please visit our website: https://ri.telefonica.com.br/en
CONTACT: David Melcon Sanchez-Friera, CFO and Investor Relations Officer, Telephone: +55 11 3430-3687, Email: ir.br@telefonica.com
SOURCE Telefônica Brasil S.A.
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