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.
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