1Q19 Results: Telefônica Brasil S.A.

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May 09, 2019, 06:53 ET

SAO PAULO, May 9, 2019 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3 [Common Shares] / VIVT4 [Preferred Shares]; NYSE: VIV), announces its results for 1Q19.

Change in revenue mix, focusing on high-value services, coupled with cost efficiency to ensure higher profitability, leading to double-digit growth in net income and cash flow

Consolidated in R$ million	1Q19	% y-o-y

Net Operating Revenues	10,975	1.7
Net Mobile Revenues	7,081	4.7
Net Fixed Revenues	598	55.1
Net Handset Revenues	3,894	(3.2)
Recurring Operating Costs	(7,072)	1.1
Recurring EBITDA	3,903	2.9
Recurring EBITDA Margin %	35.6%	0.4 p.p.
Net Income	1,342	22.2

Free Cash Flow	1,165	16.1

Total Accesses (thousand)	94,994	(2.9)
Mobile accesses	73,529	(2.1)
Fixed accesses	21,465	(5.5)

Mobile Market share expansion, reaching 32.1% in March 2019 (+0.3 p.p. y-o-y). Mobile Postpaid accesses increased 9.4% y-o-y, reaching 40.1% of market share in March 2019 (16.2 p.p. above the second player).

Broadband accesses totaled 7,386 thousand customers in 1Q19, with UBB connections already accounting for 68.1% of the base after growing 8.4% y-o-y (with FTTH accesses growing 44.1% y-o-y in 1Q19).

Broadband ARPU recorded y-o-y growth of 12.7% in 1Q19 reaching R$62.2, influenced by the evolution of the ultra-broadband customer base.

Net Operating Revenues increased 1.7% in 1Q19 over 1Q18.

Net Mobile Revenues rose 4.7% y-o-y in 1Q19. This growth was mainly driven by the expansion of Data and Digital Service Revenues and by higher Net Handset Revenues.

Recurring Operating Costs grew 1.1% y-o-y in 1Q19, mainly due to higher expenses related to handset sales, offset by simplification, efficiency and digitalization initiatives. Excluding the cost of goods sold, total costs fell 2.9% y-o-y.

EBITDA totaled R$ 3,903 million in 1Q19, up 2.9% y-o-y, with an EBITDA margin of 35.6% (+0.4 p.p. y-o-y).

Capex totaled R$ 1,696 million in 1Q19, focused on FTTH and on the expansion of coverage and capacity in 4G/4.5G.

Net income increased 22.2% y-o-y, to R$ 1,342 million in 1Q19, as a result of ongoing cost control, strong EBITDA growth and lower financial expenses

Free Cash Flow grew 16% y-o-y in 1Q19 reaching R$1,165 million in the period.

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.