4Q23 and 2023 Results: Telefônica Brasil S.A.

SÃO PAULO, Feb. 20, 2024 /PRNewswire/ --Telefônica Brasil - (B3: VIVT3; NYSE: VIV), announces its results for 4Q23 and 2023.

Net Income expands by +23.1% YoY in 2023, led by real top-line growth

     
              
                R$ million                       4Q23    4Q22  % Y-o-      2023       2022     % Y-o-
                                                                                Y                             Y





     
              Net Operating Revenue                       13,535   12,659      6.9     52,100     48,041        8.4



     Core Revenue                                           12,790   11,771      8.7     48,910     44,151       10.8



     Mobile Revenue                                          9,643    8,899      8.4     36,669     33,070       10.9



     Fixed core revenue                                      3,146    2,872      9.5     12,241     11,081       10.5



     Non-core Revenue                                          745      888   (16.1)     3,190      3,890     (18.0)



     
              Total Costs                                (7,783) (7,425)     4.8   (30,782)   (28,760)       7.0



     
              EBITDA                                       5,752    5,234      9.9     21,318     19,282       10.6



     
                     EBITDA Margin                        42.5 %  41.3 %    1.1      40.9 %    40.1 %      0.8
                                                                              p.p.                          p.p.



     
              EBITDA After Leases (AL)                     4,461    4,110      8.5     16,572     14,940       10.9



     
                     EBITDA AL Margin                     33.0 %  32.5 %    0.5      31.8 %    31.1 %      0.7
                                                                              p.p.                          p.p.



     
              Net Income attributed to Telefônica Brasil   1,601    1,126     42.1      5,029      4,085       23.1



     
              Earnings per Share (EPS)                      0.97     0.68     42.8       3.03       2.44       24.0





     
              CAPEX ex-IFRS 16                             2,295    2,489    (7.8)     8,960      9,530      (6.0)



     
              Operating Cash Flow (OpCF)                   3,457    2,746     25.9     12,358      9,752       26.7



     
                    OpCF Margin                           25.5 %  21.7 %    3.9      23.7 %    20.3 %      3.4
                                                                              p.p.                          p.p.



     
              Operating Cash Flow After Leases (OpCF AL)   2,167    1,622     33.6      7,612      5,410       40.7



     
                    OpCF AL Margin                        16.0 %  12.8 %    3.2      14.6 %    11.3 %      3.4
                                                                              p.p.                          p.p.



     
              Free Cash Flow                                 592      816   (27.5)     8,148      7,289       11.8





     
              Total Subscribers (Thousand)               113,001  112,330      0.6    113,001    112,330        0.6

Net revenue grew +6.9% YoY led by the increase in Mobile Service Revenue (MSR) (+8.7 YoY), that was driven by Postpaid Revenue (+11.3% YoY), which was positively impacted by the customer base increase, lowest historical churn level, at 0.97% per month, and highest ARPU in the last 4 years, R$51.3 (+8.1% YoY).

Fixed revenue maintained its positive performance, increasing +3.5% YoY, driven by FTTH revenues (+16.5% YoY) and Corporate Data, ICT and Other revenues (+9.9% YoY). FTTH network is currently present in 443 cities (+34 cities YoY) with 26.2 million homes passed (+12.4% YoY) and 6.2 million homes connected (+12.6% YoY).

EBITDA totaled R$5,752 (+9.9% YoY), with a margin of 42.5% (+1.1 p.p. YoY), due to strong performance of core revenues (+8.7% YoY) and ongoing control of costs (+4.8% YoY) in the quarter.

Operating Cash Flow grew (+25.9% YoY), with a margin of 25.5% (+3.9 p.p. YoY) over net revenue. In 2023, Capex ex-IFRS16 totaled R$8,960 million (-6.0% YoY) or 17.2% of revenues (-2.6 p.p. YoY), thus accomplishing the guidance of investing less than R$9 billion in the year.

Net income attributed to Telefônica Brasil reached R$5,029 million in 2023 (+23.1% YoY). Shareholder remuneration paid in 2023 hit R$4,786 million, of which R$2,471 million were in interest on capital, R$1,827 million in dividends and R$489 million in share buybacks. For the years 2024 to 2026, the Company has committed to distributing to its shareholders an amount equal to or above 100% of net income for each fiscal year.

To download the complete version of the Company's earnings release, please visit our website: https://ri.telefonica.com.br/en

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SOURCE Telefônica Brasil S.A.