1Q14 Results: Telefonica Brasil S.A.

SAO PAULO, May 8,  2014 /PRNewswire/ -- Telefonica Brasil - (Bovespa: VIVT3 [ON = Common Shares] / VIVT4 [PN = Preferred Shares]; NYSE: VIV), announces its consolidated results for the first quarter of 2014. Telefonica Brasil reached margin of 29.8% with strict cost control despite the higher commercial activity in the period.

Total accesses reached 93.9 million in the quarter (+1.4% q-o-q). Consistent leadership in higher revenue mobile segments, with acceleration in postpaid accesses growth, +27.6% y-o-y in 1Q14 over +26.0% y-o-y in 4Q13.

Increasing improvement in the customer mix, 31.7% of the accesses base in the postpaid segment, +6.1 p.p. over 1Q13.

Mobile ARPU recorded annual growth of 0.7% in 1Q14, despite MTR reductions, leveraged by the growth in Data ARPU, +17.5% in the same period.

Fixed voice accesses recorded quarterly growth of 78 thousand accesses in 1Q14, leveraged by net additions with FWT technology. FTTH accesses totaled 236 thousand in 1Q14, with acceleration of net additions in the period. TV accesses grew 83 thousand accesses totaling 645 thousand subscribers, influenced by DTH and IPTV additions.

Fixed service revenue posted best evolution in almost 2 years with variation of -2.3% y-o-y. Excluding the regulatory effects, this figure came to -0.1% in 1Q14 over 1Q13. Mobile service revenue recorded variation of +3.3% y-o-y. Excluding the regulatory effects, this figure came to +6.5% in 1Q14 over 1Q13.

Data and VAS revenue already account for 34.7% of the Mobile Service Revenue, leveraged by the growth of the mobile internet revenue, which increased by 34.9% y-o-y in 1Q14.

First-quarter EBITDA totaled R$2.6 billion, with an EBITDA margin of 29.8% in the period.

IOC and Dividends paid in 2014 already totaled R$1.8 billion.

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

Av. Luis Carlos Berrini, 1376 – 28th floor – Cidade Moncoes – SP – 04571-936

Phone: +55 11 3430-3687 / Email: [email protected]

To download the complete version of the Company's earnings release, please visit our website: http://www.telefonica.com.br/ir

SOURCE Telefonica Brasil S.A.