4Q23 and 2023 Results: Telefônica Brasil S.A.
SÃO PAULO, Feb. 20, 2024 /PRNewswire/ --Telefônica Brasil - (B3: VIVT3; NYSE: VIV), announces its results for 4Q23 and 2023.
Net Income expands by +23.1% YoY in 2023, led by real top-line growth
R$ million | 4Q23 | 4Q22 | % Y-o-Y | 2023 | 2022 | % Y-o-Y |
Net Operating Revenue | 13,535 | 12,659 | 6.9 | 52,100 | 48,041 | 8.4 |
Core Revenue | 12,790 | 11,771 | 8.7 | 48,910 | 44,151 | 10.8 |
Mobile Revenue | 9,643 | 8,899 | 8.4 | 36,669 | 33,070 | 10.9 |
Fixed core revenue | 3,146 | 2,872 | 9.5 | 12,241 | 11,081 | 10.5 |
Non-core Revenue | 745 | 888 | (16.1) | 3,190 | 3,890 | (18.0) |
Total Costs | (7,783) | (7,425) | 4.8 | (30,782) | (28,760) | 7.0 |
EBITDA | 5,752 | 5,234 | 9.9 | 21,318 | 19,282 | 10.6 |
EBITDA Margin | 42.5 % | 41.3 % | 1.1 p.p. | 40.9 % | 40.1 % | 0.8 p.p. |
EBITDA After Leases (AL) | 4,461 | 4,110 | 8.5 | 16,572 | 14,940 | 10.9 |
EBITDA AL Margin | 33.0 % | 32.5 % | 0.5 p.p. | 31.8 % | 31.1 % | 0.7 p.p. |
Net Income attributed to Telefônica Brasil | 1,601 | 1,126 | 42.1 | 5,029 | 4,085 | 23.1 |
Earnings per Share (EPS) | 0.97 | 0.68 | 42.8 | 3.03 | 2.44 | 24.0 |
CAPEX ex-IFRS 16 | 2,295 | 2,489 | (7.8) | 8,960 | 9,530 | (6.0) |
Operating Cash Flow (OpCF) | 3,457 | 2,746 | 25.9 | 12,358 | 9,752 | 26.7 |
OpCF Margin | 25.5 % | 21.7 % | 3.9 p.p. | 23.7 % | 20.3 % | 3.4 p.p. |
Operating Cash Flow After Leases (OpCF AL) | 2,167 | 1,622 | 33.6 | 7,612 | 5,410 | 40.7 |
OpCF AL Margin | 16.0 % | 12.8 % | 3.2 p.p. | 14.6 % | 11.3 % | 3.4 p.p. |
Free Cash Flow | 592 | 816 | (27.5) | 8,148 | 7,289 | 11.8 |
Total Subscribers (Thousand) | 113,001 | 112,330 | 0.6 | 113,001 | 112,330 | 0.6 |
Net revenue grew +6.9% YoY led by the increase in Mobile Service Revenue (MSR) (+8.7 YoY), that was driven by Postpaid Revenue (+11.3% YoY), which was positively impacted by the customer base increase, lowest historical churn level, at 0.97% per month, and highest ARPU in the last 4 years, R$51.3 (+8.1% YoY).
Fixed revenue maintained its positive performance, increasing +3.5% YoY, driven by FTTH revenues (+16.5% YoY) and Corporate Data, ICT and Other revenues (+9.9% YoY). FTTH network is currently present in 443 cities (+34 cities YoY) with 26.2 million homes passed (+12.4% YoY) and 6.2 million homes connected (+12.6% YoY).
EBITDA totaled R$5,752 (+9.9% YoY), with a margin of 42.5% (+1.1 p.p. YoY), due to strong performance of core revenues (+8.7% YoY) and ongoing control of costs (+4.8% YoY) in the quarter.
Operating Cash Flow grew (+25.9% YoY), with a margin of 25.5% (+3.9 p.p. YoY) over net revenue. In 2023, Capex ex-IFRS16 totaled R$8,960 million (-6.0% YoY) or 17.2% of revenues (-2.6 p.p. YoY), thus accomplishing the guidance of investing less than R$9 billion in the year.
Net income attributed to Telefônica Brasil reached R$5,029 million in 2023 (+23.1% YoY). Shareholder remuneration paid in 2023 hit R$4,786 million, of which R$2,471 million were in interest on capital, R$1,827 million in dividends and R$489 million in share buybacks. For the years 2024 to 2026, the Company has committed to distributing to its shareholders an amount equal to or above 100% of net income for each fiscal year.
To download the complete version of the Company's earnings release, please visit our website: https://ri.telefonica.com.br/en
SOURCE Telefônica Brasil S.A.
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