4Q14 and 2014 Results: Telefonica Brasil S.A.

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Feb 24, 2015, 05:19 ET

SAO PAULO, Feb. 24, 2015 /PRNewswire/ -- Telefonica Brasil - (Bovespa: VIVT3 [ON = Common Shares] / VIVT4 [PN = Preferred Shares]; NYSE: VIV), announces its consolidated results for the fourth quarter and the year of 2014. Telefonica Brasil consolidates solid operational evolution in 2014 delivering superior mobile revenue growth and improved fixed revenue trend.

R$ million	4Q14	4Q13	2014	2013
Net Revenue	9,047.6	9,056.7	35,000.0	34,721.9
Operating Costs	-6,298.8	-6,185.5	-24,595.4	-24,146.3
EBITDA	2,748.8	2,871.2	10,404.6	10,575.6
Recurrent EBITDA	2,960.8	2,778.3	10,616.6	10,492.9
EBITDA Margin (%)	30.4%	31.7%	29.7%	30.5%
Recurrent EBITDA Margin %	32.7%	31.2%	30.3%	30.4%
Net Result	1,260.9	1,231.3	4,936.6	3,715.9
Number of accesses (thousand)	95,375	92,547	95,375	92,547
Mobile accesses	79,938	77,245	79,938	77,245
Fixed accesses	15,437	15,302	15,437	15,302

Total accesses reached 95.4 million in the quarter. Leadership in higher revenue mobile segments with continuous growth in postpaid access, +19.7% y-o-y in 4Q14.

Postpaid clients accounted for 35.5% of the mobile access base with a share of net additions coming to 56.3% in 2014. Our market share in the reached 41.8% in December.

Mobile ARPU grew 4.5% q-o-q in 4Q14, stimulated by the growth in Data ARPU.

Broadband accesses totaled 3,925 thousand in 4Q14, while FTTH solution reached 375 thousand accesses (+83.5% y-o-y). Growth in TV accesses remained strong, with annual upturn of 22.3%.

Recurring mobile service revenue recorded annual variation of +5.8% in 4Q14 and +4.6% in 2014. Excluding the effect of MTR reductions in 2014, the variation in the quarter was +8.9% y-o-y.

Fixed service revenue reduced -4.8% y-o-y in 4Q14 and -3.9% y-o-y in 2014, reflecting substantial improvement over 2013's performance. By excluding the effects of the VC and the basic tariff reduction, the variation would be of -1.1% in 4Q14 over 4Q13.

Recurring operating costs fell by 0.4% over 4Q13, with controlled growth of 1.3% y-o-y in 2014.

The recurring EBITDA grew by 6.6% y-o-y on 4Q14, annually expanding for the third consecutive quarter. In 2014, recurring EBITDA totaled R$10.6 billion. The 4Q recurring EBITDA margin stood at 32.7%, +1.5 p.p. over 4Q13. In 2014, recurring margin reached 30.3%.

TELEFONICA BRASIL – Investor Relations
Paulo Cesar Teixeira
Alberto Horcajo Aguirre
Luis Carlos Plaster
Maria Tereza Pelicano David

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.