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1Q18 Results: Telefônica Brasil S.A.

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1Q18 Results: Telefônica Brasil S.A.

Telefônica Brasil - (B3: VIVT3 [Common Shares] / VIVT4 [Preferred Shares]; NYSE: VIV), announces its results for the 1Q18.

PR Newswire

SAO PAULO, April 25, 2018 /PRNewswire/ --

 

4.2% growth of Net Mobile Revenues, combined with the ninth consecutive quarter of recurring costs reduction, drive another quarter of strong EBITDA growth and cash generation.


 Consolidated in R$ million

1Q18 

(Pro forma1)

% y-o-y




Net Operating Revenues

10,759.0

1.6

  Net Mobile Revenues

6,734.9

4.2

  Net Fixed Revenues

4,024.1

(2.5)

Operating Costs

6,993.8

(1.2)

EBITDA

3,765.3

7.2

EBITDA Margin %

35.0

1.8 p.p.

Net Income2

1,098.0

10.2




Total Accesses (thousand)

97,812

0.6

  Mobile Accesses

75,098

1.5

  Fixed Accesses

22,714

(2.3)









 

Market share expansion, reaching 31.9% in March 2018 (+1.4 p.p. y-o-y). Mobile Postpaid accesses increased 10.9% y-o-y, reaching 41.4% of the market share in March 2018 (17.9 p.p. above the second placed player).

Mobile ARPU recorded y-o-y growth of 2.1% in 1Q18 reaching R$28.6, fueled by a higher share of postpaid clients in the mix and increased data usage, mainly in digital services. As a result, Data ARPU grew 15.8% y-o-y in 1Q18.

Broadband accesses totaled 7.4 million customers in 1Q18 (+1.5% y-o-y), with UBB3 connections already accounting for 62.4% of the base after a y-o-y growth of 9.9% (with 122 thousand FTTH net additions in the 1Q18 – record level for a first quarter). Broadband ARPU increased 13.7% in 1Q18 over 1Q17, influenced by the evolution of the ultra-broadband customer base.

Net Operating Revenues grew 1.6% in 1Q18 over 1Q17.

Mobile Revenues rose 4.2% y-o-y in 1Q18, while Mobile Service Revenues increased 3.5% y-o-y. Data and Digital Service Revenues increased 17.4% y-o-y in 1Q18, accounting for 77.8% of Mobile Service Revenues, while Revenues from Handset Sales grew 20.8% y-o-y in the quarter.

Operating Costs fell 1.2% in 1Q18 versus 1Q17 (LTM IPCA +2.7%), demonstrating the continued efforts and focus on the pursuit of efficiencies.

EBITDA totaled R$3.8 billion in 1Q18, 7.2% up on 1Q17, yielding an EBITDA margin of 35.0% (+1.8 p.p. y-o-y), fueled by digitalization measures adopted by the Company.

CAPEX amounted to R$1.5 billion in 1Q18, mainly focused on improving network capacity and 4G coverage (totaling 2,711 municipalities in March 2018; 85% of the population), expansion of FTTH footprint, increase of FTTx penetration and investments in IT, supporting the Company's digitalization process.

EBITDA – Capex (ex. licenses) grew 1.5% in 1Q18 over 1Q17, reaching R$2.2 billion, while our Free Cash Flow from Business Activities rose 48.1%, reaching R$1.0 billion in the quarter.

Net Income (IFRS 15) totaled R$1.1 billion in 1Q18 (+10.2% y-o-y), mainly due to higher EBITDA and better financial results.

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

1 For comparison purposes, pro forma numbers are not considering the impacts that IFRS 15 had on our 2018 financial statements.
2 Reported Net Income, considering impacts from IFRS 15.
3 UBB includes FTTH (Fiber to the home), FTTC (Fiber to the cabinet) and cable customers.

Cision View original content:http://www.prnewswire.com/news-releases/1q18-results-telefonica-brasil-sa-300636238.html

SOURCE Telefônica Brasil S.A.

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