Telefônica Brasil - (B3: VIVT3; NYSE: VIV), announces its results for 2Q23.
Strong Net Revenue growth combined with cost discipline leads to a double-digit EBITDA expansion
SÃO PAULO, July 25, 2023 /PRNewswire/ --
R$ million |
2Q23 |
2Q22 |
% Y-o-Y |
6M23 |
6M22 |
% Y-o-Y |
Net Operating Revenues |
12,733 |
11,831 |
7.6 |
25,454 |
23,183 |
9.8 |
Core Revenue |
11,913 |
10,839 |
9.9 |
23,785 |
21,124 |
12.6 |
Mobile Revenue |
8,927 |
8,110 |
10.1 |
17,746 |
15,691 |
13.1 |
Fixed Core Revenue |
2,986 |
2,729 |
9.4 |
6,039 |
5,433 |
11.2 |
Non-Core Revenue |
820 |
992 |
(17.4) |
1,668 |
2,059 |
(19.0) |
Total Costs |
(7,648) |
(7,253) |
5.4 |
(15,426) |
(14,093) |
9.5 |
EBITDA |
5,085 |
4,578 |
11.1 |
10,027 |
9,090 |
10.3 |
EBITDA Margin |
39.9 % |
38.7 % |
1.2 p.p |
39.4 % |
39.2 % |
0.2 p.p |
Net Income (Consolidated) |
1,121 |
746 |
50.3 |
1,956 |
1,496 |
30.8 |
Net (Income)/Loss of non-controlling shareholders |
2 |
17 |
(91.2) |
2 |
23 |
(93.1) |
Net Income Controlling Shareholders |
1,123 |
763 |
47.2 |
1,957 |
1,519 |
28.9 |
Capex | Ex- IFRS 16 and Licenses |
2,353 |
2,575 |
(8.6) |
4,039 |
4,455 |
(9.3) |
Operating Cash Flow (OpCF) |
2,732 |
2,003 |
36.4 |
5,988 |
4,634 |
29.2 |
OpCF/Net Revenue Margin |
21.5 % |
16.9 % |
4.5 p.p |
23.5 % |
20.0 % |
3.5 p.p |
Free Cash Flow |
2,508 |
2,157 |
16.3 |
5,638 |
4,634 |
21.7 |
Total Subscribers (thousand) |
111,940 |
113,706 |
(1.6) |
111,940 |
113,706 |
(1.6) |
Core Subscribers |
104,767 |
105,821 |
(1.0) |
104,767 |
105,821 |
(1.0) |
Non-Core Subscribers |
7,173 |
7,885 |
(9.0) |
7,173 |
7,885 |
(9.0) |
Net Revenue grew +7.6%, led by Mobile Service Revenue, which had a double-digit growth (+10.4% YoY). Postpaid Revenue increased +13.3% on an annual comparison, positively impacted by the expansion of the customer base, annual price readjustments and churn at historic low levels, at 1.00%. In July 2023, there was the launch of three Vivo Hybrid plans with entertainment and healthcare options.
Core Fixed Revenue rose by +9.4% year-on-year, driven by FTTH Revenue (+14.3% YoY) and Corporate Data, ICT and Other revenue (+15.1% YoY). Vivo's FTTH network reached 24.7 million homes passed (+17.2% YoY) and 5.8 million homes connected (+15.1% YoY). Vivo Total, the fiber and postpaid convergent offer, represented 80% of our fiber gross adds in Vivo's stores and registered a monthly churn rate of 0.39%.
EBITDA totaled R$5,085 million, a double-digit increase (+11.1% YoY) in 2Q23 with a margin of 39.9% (+1.2 p.p. YoY) due to the strong mobile service performance. Total Costs growth decelerated in the quarter (+5.4% YoY) mainly due to operational efficiency and ongoing digitalization initiatives. Operating Cash Flow grew +36.4% YoY, highlighting the lower Capex (-8.6% YoY), maintaining its guided level of below R$9 billion for 2023.
Shareholder remuneration declared up to July 2023 hit R$2,161 million, of which R$1,121 million were in interest on capital, R$827 million in dividends and R$213 million in share buybacks, reaffirming the Company's commitment to maximizing shareholder's return.
Net income attributable to controlling shareholders had a strong growth of +47.2% compared to the same period of last year, reaching R$1,123 million in 2Q23, due to the strong evolution of EBIT and lower financial expenses.
CONTACT: David Melcon Sanchez-Friera, CFO and Investor Relations Officer, Telephone: +55 11 3430-3687, Email: ir[email protected]
To download the complete version of the Company's earnings release, please visit our website: https://ri.telefonica.com.br/en
SOURCE Telefônica Brasil S.A.
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