2Q19 Results: Telefônica Brasil S.A.

SÃO PAULO, July 24, 2019 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3 [Common Shares] / VIVT4 [Preferred Shares]; NYSE: VIV), announces its results for 2Q19.

Change in revenue mix, focused on high-end services, coupled with digitalization, cost efficiency programs and excellent financial management ensured margin growth, double-digit growth in cash flow and unparalleled shareholder remuneration

            
              
                Consolidated in R$ million    2Q19   % y-o-y





            
              Net Operating Revenues                   10,870         0.4



                Net Mobile Revenues                              6,972         2.3



                Net Handset Revenues                               631        31.9



                Net Fixed Revenues                               3,897       (2.8)



            Recurring Operating Costs                          (7,079)        0.1



            
              Recurring EBITDA                          3,791         1.0


    Recurring EBITDA Margin %                                   34.9%   0.2 p.p.



            Recurring Net Income                                 1,420        26.4



            
              Free Cash Flow                            2,220        11.0





            
              Total Accesses (thousand)                94,364       (3.5)



            Mobile accesses                                     73,744       (2.0)



            Fixed accesses                                      20,619       (8.5)

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Mobile market share of 32.2% in May 2019 (7.5 p.p. higher than the second player). Postpaid accesses grew 8.5%, accounting for 56.6% of total mobile accesses, with a market share of 40.0% in May 2019.

Broadband accesses totaled 7,268 thousand customers in 2Q19 and FTTH accesses grew 37.9% y-o-y, with 136 thousand net additions in the 2Q19. Broadband ARPU moved up 14.2% over 2Q18 reaching R$63.3. up 14.2% over 2Q18 rea

Net revenues rose 0.4% y-o-y, reflecting the performance of postpaid, terminals and FTTH revenues. Mobile revenues increased 2.3% y-o-y, driven by growth in ARPU, postpaid accesses and handset sales.

Recurring operating costs increased 0.1% y-o-y 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 2.4% y-o-y.

Recurring EBITDA totaled R$ 3,791 million in 2Q19, up 1.0% y-o-y, with an EBITDA margin of 34.9% (+0.2 p.p. y-o-y).

Capex totaled R$ 2,360 million in 2Q19, focused on FTTH and expansion of 4G/4.5G coverage and capacity.

Recurring reported net income grew 26.4% y-o-y in 2Q19, to R$ 1,420 million. Interest on equity of R$ 2,238 million already declared in the first half of 2019.

Free cash flow moved up 11.0% y-o-y, to R$ 2,220 million in 2Q19, driven by EBITDA growth and lower tax expenses.

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

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SOURCE Telefônica Brasil S.A.