SÃO PAULO, Feb. 19, 2020 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3 [Common Shares] / VIVT4 [Preferred Shares]; NYSE: VIV), announces its results for 4Q19 and 2019.
Solid revenue growth, reflecting the performance of postpaid revenues, handsets and FTTH, and costs under control due to our digitalization and automation efforts, leading to strong EBITDA growth and the highest FCF ever generated by Vivo
Consolidated in R$ million |
4Q19 |
% y-o-y |
2019 |
% y-o-y |
Net Operating Revenues |
11,377 |
2.6 |
44,268 |
1.9 |
Net Mobile Revenues |
7,452 |
5.7 |
28,666 |
4.8 |
Net Handset Revenues |
829 |
46.2 |
2,703 |
40.7 |
Net Fixed Revenues |
3,925 |
(2.8) |
15,602 |
(3.2) |
Recurring Operating Costs |
(7,026) |
1.0 |
(28,228) |
1.2 |
Recurring EBITDA |
4,351 |
5.4 |
16,040 |
3.1 |
Recurring EBITDA Margin % |
38.2% |
1.0 p.p. |
36.2% |
0.4 p.p. |
Reported Net Income |
1,274 |
(14.3) |
5,001 |
(44.0) |
Free Cash Flow |
2,663 |
28.4 |
8,235 |
19.0 |
Total Accesses (thousand) |
93,627 |
(1.6) |
93,627 |
(1.6) |
Mobile accesses |
74,582 |
(1.9) |
74,582 |
(1.9) |
Fixed accesses |
19,044 |
(13.5) |
19,044 |
(13.5) |
Mobile market share of 32.9% in December 2019, the highest since 2006. Postpaid accesses grew 6.9%, accounting for 57.9% of total mobile accesses, with a market share of 39.4% in December 2019.
Broadband accesses totaled 6,908 thousand customers in 4Q19 and FTTH accesses grew 30.8% y-o-y, with 145 thousand net additions in 4Q19. Broadband ARPU increased 14.1% versus 4Q18, reaching R$ 71.7.
Net revenues rose 2.6% y-o-y, reflecting the solid results of postpaid, handsets and FTTH. In 2019, net revenues grew 1.9% y-o-y. Mobile revenues increased 5.7% y-o-y, driven by the growth of ARPU, postpaid accesses and handset sales. Mobile service revenues climbed 2.2% y-o-y. In 2019, mobile revenues increased 4.8% y-o-y.
Recurring operating costs increased 1.0% y-o-y mainly due to higher expenses related to handset sales, partially offset by digitalization and automation initiatives. Excluding the cost of goods sold, total costs dropped 1.9% y-o-y. In 2019, recurring costs grew 1.2% y-o-y, well below the inflation of 4.3% registered in the period.
Recurring EBITDA totaled R$ 4,351 million in 4Q19, up 5.4% y-o-y, with an EBITDA margin of 38.2% (+1.0 p.p. y-o-y). In 2019, recurring EBITDA grew 3.1% y-o-y, with a margin of 36.2%.
Capex totaled R$ 2,357 million in 4Q19, focused on FTTH and expansion of 4G/4.5G coverage and capacity. In 2019, Capex reached R$ 8,844 million, representing 20.0% of our revenues for the period.
Reported net income fell 14.3% y-o-y in 4Q19, to R$ 1,274 million. In 2019, reported net income reached R$ 5,001 million, down 44.0% y-o-y, due to positive non-recurring effects registered in 2018. If we exclude these effects, recurring net income grows 2.5% y-o-y, reaching R$ 5,372 million.
Shareholder remuneration of R$ 5,784 million proposed, based on 2019 net income, representing a payout of 116% over our reported net income for the period, with a dividend yield of 6.1% for our preferred shareholders.
Free cash flow grew 28.4% y-o-y, to R$ 2,663 million in 4Q19, driven by EBITDA growth and lower interest, taxes and other financial expenses, partially offset by higher investment volume in the period. In 2019, free cash flow reached R$ 8,235 million, up 19.0% y-o-y, the highest ever cash generation registered by Vivo in a single year.
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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