1Q15 Results: Telefonica Brasil S.A.

News provided by

May 13, 2015, 08:18 ET

SAO PAULO, May 13, 2015 /PRNewswire/ -- Telefonica Brasil - (Bovespa: VIVT3 [ON = Common Shares] / VIVT4 [PN = Preferred Shares]; NYSE: VIV), announces its consolidated results for the first quarter of 2015. Telefonica Brasil achieved a record net operating revenue growth in 1Q15, driven by the acceleration of mobile data revenue.

R$ million	1Q15	1Q14	%YoY
Net operating revenue	8,983.1	8,611.9	4.3
Net operating service revenue	8,644.5	8,299.2	4.2
Mobile service revenue	5,904.3	5,446.1	8.4
Fixed service revenue	2,740.2	2,853.2	(4.0)
Net handset revenue	338.6	312.7	8.3
Operating Costs	(6,414.3)	(6,049.1)	6.0
EBITDA	2,568.8	2,562.8	0.2
EBITDA Margin (%)	28.6%	29.8%	(1.2)
Net income	579.7	660.8	(12.3)
Total accesses (thousand)	97,180	93,856	3.5
Mobile	81,869	78,465	4.3
Fixed	15,311	15,391	(0.5)

Total accesses reached 97.2 million in 1Q15 of which 81.9 million in the mobile business and 15.3 million in the fixed business.

Continuous growth in postpaid accesses, +16.0% y-o-y in 1Q15. Mobile ARPU recorded y-o-y growth of 4.3% in 1Q15, fueled by the 26.3% y-o-y growth in Data ARPU.

Broadband accesses totaled 3,911 thousand in 1Q15 (-0.2% y-o-y), while the FTTH solution had 429 thousand accesses (+82% y-o-y).

Growth in TV accesses with y-o-y upturn of 22.7%. The IPTV base reached 111 thousand accesses in 1Q15.

Net operating revenue increased by 4.3% y-o-y in 1Q15, the best performance in around three years.

Mobile service revenue recorded a growth of 8.4% y-o-y. Excluding the effect of MTR reduction in 2015, the variation is +11.6% in 1Q15 over 1Q14.

Data and VAS revenue grew 31.3% y-o-y and already accounts for 42% of mobile service revenue in 1Q15.

Fixed service revenue posted y-o-y variation of -4.0%. Excluding the VC and the basic tariff reduction effect, this figure would be of -0.4% in 1Q15 over 1Q14.

Fixed broadband revenue posted annual growth of 3.4% and Pay TV revenue grew by 22.0% y-o-y in 1Q15.

Recurring EBITDA totaled R$2.6 billion in 1Q15, virtually stable y-o-y, affected by a higher level of provisions for uncollectibles in a more challenging economic environment. The EBITDA margin stood at 28.6% in 1Q15.

Dividends and IOC declared based on the net profit until April/15 totaled R$785.0 million.

TELEFONICA BRASIL – Investor Relations
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 Telefônica Brasil S.A.