4Q18 Results: Telefônica Brasil S.A.

SAO PAULO, Feb. 20, 2019 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3 [Common Shares] / VIVT4 [Preferred Shares]; NYSE: VIV), announces its results for 4Q18.

Growth in key revenues lines and cost-efficiency, combined with non-recurring items, leads to record Net Income of R$ 8.9 billion in 2018.

                        Consolidated in R$ million 
     
         4Q18   % y-o-y         2018    % y-o-y





            
              Net Operating Revenues          11,093.9        0.5     43,448.0         0.6



                Net Mobile Revenues                     7,056.0        3.0     27,333.1         3.3



                Net Fixed Revenues                      4,037.8      (3.5)    16,114.9       (3.8)



                Net Handset Revenues                      505.5       70.0      1,674.9        56.5



            Recurring Operating Costs                 (6,989.9)     (1.4)  (27,974.5)       (2.0)



            
              Recurring EBITDA                 4,104.0        4.0     15,473.5         5.5


    Recurring EBITDA Margin %                             37.0   1.2 p.p.        35.6    1.7 p.p.



            Net Income                                  1,486.7      (2.0)     8,928.3        93.7





            
              Total Accesses (thousand)         95,189      (2.7)



            Mobile accesses                              73,160      (2.4)



            Fixed accesses                               22,029      (3.6)

    ---

Mobile Market share expansion, reaching 31.9% in December 2018 (+0.2 p.p. y-o-y). Mobile Postpaid accesses increased 9.9% y-o-y, reaching 40.5% of market share in December 2018 (17.0 p.p. above the second player).

Broadband accesses totaled 7,458 thousand customers in 4Q18 (+0.3% y-o-y), with UBB connections already accounting for 66.9% of the base after growing 9.9% y-o-y (with FTTH accesses growing 46.8% in 4Q18).

Broadband ARPU recorded y-o-y growth of 11.8% in 4Q18 reaching R$62.8, influenced by the evolution of the ultra-broadband customer base.

Net Operating Revenues increased 0.5% in 4Q18 over 4Q17. In 2018, Net Operating Revenues grew 0.6% y-o-y.

Net Mobile Revenues rose 3.0% y-o-y in 4Q18 (+3.3% y-o-y in 2018). This growth was mainly driven by the expansion of Data and Digital Service Revenues and by higher Net Handset Revenues.

Recurring Operating Costs fell 1.2% y-o-y in 4Q18. In 2018, costs dropped 2.0% y-o-y, driven by digitalization and simplification initiatives, consolidating three consecutive years of cost reduction.

Recurring EBITDA totaled R$4,104 million in 4Q18, 4.0% up on 4Q17 (R$15,473.5 million in 2018, 5.5% higher than 2017), reaching a solid Recurring EBITDA margin of 37.0% in the quarter (35.6% in 2018), fueled by the increase of Net Mobile Revenues and by our cost efficiency initiatives.

CAPEX amounted to R$2,113.3 million in 4Q18, reaching R$8,193.3 million in 2018. The investments were mainly focused on improving network capacity and quality by increasing 4G/4.5G coverage and FTTH roll-out, launching 30 new cities with this technology in 2018.

Net Income (Reported) totaled R$1,486.7 million in 4Q18, reaching a record-level of R$8,928.3 million (+93.7% y-o-y) in 2018, on the back of solid EBITDA expansion and the extraordinary judicial gains registered in the quarter.

TELEFÔNICA BRASIL - Investor Relations
Christian Gebara
David Melcon
Luis Plaster
João Pedro Carneiro
+55 11 3430-3687 / ir.br@telefonica.com

To download the complete version of the Company's earnings release, please visit our website: http://www.telefonica.com.br/ir

View original content:http://www.prnewswire.com/news-releases/4q18-results-telefonica-brasil-sa-300798745.html

SOURCE Telefônica Brasil S.A.