SAO PAULO, April 27, 2016 /PRNewswire/ -- Telefonica Brasil - (Bovespa: VIVT3 [Common Shares] / VIVT4 [Preferred Shares]; NYSE: VIV), announces its 1Q16 results. In the first quarter of 2016, Vivo achieved strong EBITDA expansion and robust cash flow generation through sustained revenue growth, efficiency and synergies capturing.
| R$ million |
1Q16 |
% y-o-y |
| Net Operating Revenues |
10,431.4 |
0.6 |
| Net mobile revenues |
6,212.9 |
(0.3) |
| Net fixed revenues |
4,218.5 |
2.0 |
| Operating costs |
(6,642.9) |
(9.0) |
| Recurring Operating costs* |
(7,156.4) |
(2.0) |
| EBITDA |
3,788.5 |
23.8 |
| EBITDA Margin % |
36.3% |
6.8 p.p. |
| Recurring EBITDA* |
3,275.0 |
7.0 |
| Recurring EBITDA Margin %* |
31.4% |
1.9 p.p. |
| Net income |
1,218.2 |
179.3 |
| Number of accesses (thousand) |
97,220 |
(8.1) |
| Mobile accesses |
73,271 |
(10.5) |
| Fixed accesses |
23,950 |
0.3 |
(*) Adjusted by the towers sale in 1Q16 in the amount of R$ 513.5 million
Leadership in the postpaid segment, with continuous growth (+8.1% y-o-y in 1Q16) and share of net additions of 41% until February 2016. Postpaid market share came to 42.4% in February. Mobile ARPU recorded y-o-y growth of 10.9% in 1Q16, driven by the solid 35.7% y-o-y growth in Data ARPU, which already represented 52% of total ARPU.
Resilient growth in fixed accesses: Broadband accesses reached 7.2 million in 1Q16, while FTTx* connections reached 54.2% of the base in 1Q16, with annual growth of 12.6%. Pay TV accesses totaled 1.8 million in 1Q16, 4.9% up y-o-y, with strong increase in premium accesses (IPTV and Interactive DTH).
Net operating service revenue grew 1.0% y-o-y in 1Q16, maintaining a positive performance despite the challenging macroeconomic environment and affected by regulatory effects.
Net mobile service revenue increased by 0.4% y-o-y in 1Q16. Excluding the effect of MTR reductions in 2015 and 2016, this line increased 2.9% over 1Q15.
Mobile Data and VAS revenue grew 22.8% y-o-y in 1Q16, fueled by the strong upturn in mobile internet revenue, of 35.4% over 1Q15.
Net fixed revenue posted y-o-y growth of 2.0% in 1Q16. Excluding the reduction in fixed-mobile regulated tariffs (VC, TU-RL and TU-RIU), this increase came to 5.1% in 1Q16 over 1Q15.
Operating costs fell by 9.0% y-o-y in 1Q16. Adjusted by the sale of towers, operating costs declined 2.0%, reflecting the Company's focus on efficiency and the capturing of synergies.
EBITDA totaled R$ 3.8 billion in 1Q16, accompanied by an EBITDA Margin of 36.3%. Adjusted for the sale of towers recurring EBITDA amounted to R$3.3 billion in the quarter, with a recurring EBITDA Margin of 31.4% achieving the highest growth in the last 5 quarters: 7% y-o-y.
1Q16 investments totaled R$1.5 billion, accounting for 14.3% of net operating revenue.
EBITDA – CAPEX achieved accelerated growth of 37% y-o-y in 1Q16 with a strong evolution in Free Cash Flow in 1Q16.
Successful execution of key projects during April/16 (one only brand and legal entity, launch of national 3P portfolio and 4P pilot) and value capture of synergies in 1Q16 in line with expectations.
TELEFONICA BRASIL – Investor Relations
Amos Genish
David Melcon
Luis Plaster
Maria Tereza Pelicano David
+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 Telefonica Brasil S.A.
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