4Q22 Results: Telefônica Brasil S.A.

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Feb 15, 2023, 17:56 ET

SÃO PAULO, Feb. 15, 2023 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3; NYSE: VIV), announces its results for 4Q22 and 2022.

Vivo reinforces its leadership with a double-digit growth in Customer Base and Revenues, leading to strong Shareholder Remuneration in 2022

*R$ million*	4Q22	4Q21	% Y-o-Y	2022	2021	% Y-o-Y

Net Operating Revenues	12,659	11,501	10.1	48,041	44,033	9.1
Core Revenue	11,771	10,415	13.0	44,151	39,319	12.3
Mobile Revenue	8,899	7,847	13.4	33,070	29,376	12.6
Fixed Core Revenue	2,872	2,568	11.9	11,081	9,942	11.5
Non-Core Revenue	888	1,086	(18.2)	3,890	4,714	(17.5)
Recurring Total Costs	(7,425)	(6,568)	13.0	(28,760)	(26,005)	10.6
Reported Total Costs	(7,425)	(6,568)	13.0	(28,760)	(25,025)	14.9
Recurring EBITDA	5,234	4,933	6.1	19,282	18,027	7.0
Recurring EBITDA Margin	41.3 %	42.9 %	(1.5) p.p.	40.1 %	40.9 %	(0.8) p.p.
Reported EBITDA	5,234	4,933	6.1	19,282	19,007	1.4
Reported EBITDA Margin %	41.3 %	42.9 %	(1.5) p.p.	40.1 %	43.2 %	(3.0) p.p.
Net Income	1,126	2,628	(57.2)	4,058	6,229	(34.9)

Capex \| Ex- IFRS 16 and Licenses	2,489	2,339	6.4	9,530	8,685	9.7
Operating Cash Flow (OpCF)	2,746	2,594	5.9	9,752	10,323	(5.5)
OpCF/Net Revenue Margin	21.7 %	22.6 %	(0.9) p.p.	20.3 %	23.4 %	(3.1) p.p.
Free Cash Flow after Lease Payments	816	737	10.7	7,289	7,438	(2.0)

Total Subscribers (thousand)	112,330	98,760	13.7	112,330	98,760	13.7
Core Subscribers	104,845	90,373	16.0	104,845	90,373	16.0
Non-Core Subscribers	7,485	8,387	(10.8)	7,485	8,387	(10.8)

Net Operating Revenue grew above inflation (10.1% YoY) led by Mobile Service Revenue, which increased 13.6% YoY. Postpaid Revenue and Prepaid Revenue grew, on an annual comparison, +13.2% and +15.0% respectively. These increases were driven by the expansion of the customer base, annual price readjustments and churn in historic low levels. Customer base totaled 112 million accesses (13.7% YoY) of which 98 million were mobile accesses (+16.8% YoY).

Net Fixed Revenue rose +2.9% YoY - the biggest increase since 2015 - due to a higher representativeness of Core Fixed Revenue, which is corresponding to 76.4% (+6.1 p.p.) of Net Fixed Revenue. FTTH Revenue grew +18.8% YoY as our FTTH network reached 82 new cities YoY, now present in 409 Brazilian cities, with 23.3 million homes passed and adding 3.7 million new homes connected.

When not considering Depreciation and Amortization, Recurring Total Costs expanded +13.0% YoY, being impacted by changes in revenue mix and inflation. Recurring EBITDA totaled R$5,234 million (+6.1% YoY) in 4Q22, with a Recurring EBITDA margin of 41.3%.

Throughout 2022, the Company declared R$ 5,104 million in dividends and interest on capital, and the Share Buyback Program totaled R$ 607 million in shares. In addition, the Board of Directors proposed the deliberation of R$ 826.7 million in dividends to be ratified at the General Shareholders' Meeting of April 13, 2023. The Company also approved the new Share Buyback Program of up to R$ 500 million in ordinary shares and the cancellation of treasury shares (13,381,540 shares or 0.80% of the capital stock). For 2023, the Company projects that its CAPEX, excluding licenses and leasing (IFRS 16), will reach up to R$ 9 billion.