SAO PAULO, Oct. 27, 2020 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3 [Common Shares] / VIVT4 [Preferred Shares]; NYSE: VIV), announces its results for 3Q20.
Record fiber net adds and recovery of prepaid confirms Vivo's sequential operating improvement combined with superior cash generation
R$ million | 3Q20 | % y-o-y | 9M20 | % y-o-y |
Net Operating Revenues | 10,792 | (2.3) | 31,934 | (2.9) |
Net Mobile Revenues | 7,163 | 0.0 | 20,852 | (1.7) |
Net Handset Revenues | 710 | 10.1 | 1,664 | (11.2) |
Net Fixed Revenues | 3,628 | (6.6) | 11,082 | (5.1) |
Operating Costs | (6,470) | (0.6) | (19,002) | (3.7) |
Recurring Operating Costs | (6,470) | (1.5) | (19,078) | (3.6) |
EBITDA | 4,322 | (4.8) | 12,932 | (1.8) |
EBITDA Margin | 40.0% | (1.1) p.p. | 40.5% | 0.5 p.p. |
Recurring EBITDA | 4,322 | (3.5) | 12,856 | (1.9) |
Recurring EBITDA Margin % | 40.0% | (0.5) p.p. | 40.3% | 0.4 p.p. |
Net Income | 1,212 | 25.5 | 3,478 | (6.7) |
Capex | Ex- IFRS 16 | 1,803 | (25.8) | 5,359 | (17.4) |
Free Cash Flow after Lease Payments | 3,540 | 34.5 | 8,901 | 50.1 |
Total Subscribers (thousand) | 93,718 | (0.0) | 93,718 | (0.0) |
Mobile subscribers | 76,718 | 3.9 | 76,718 | 3.9 |
Fixed subscribers | 17,000 | (14.5) | 17,000 | (14.5) |
Fiber-to-the-home broadband customers totaled 3,130 thousand (+34.2% y-o-y), posting record net additions for the third quarter in a row and representing almost 50% of broadband accesses. Overall broadband ARPU increased 17% versus 3Q19, reaching R$77.7.
Mobile market share reached 33.3% in August 2020, 8.7 p.p. more than the second player and the highest level in over 14 years. Postpaid accesses grew 3.9% y-o-y and accounted for 57.3% of total mobile accesses, with a market share of 38.5% in August 2020 and the lowest churn in 5 years.
Fiber-to-the-home and IPTV revenues continue to grow significantly (+56.0% y-o-y and +26.9% y-o-y, respectively) while mobile revenue is showing recovery to pre-pandemic levels, growing 3.3% over 2Q20.
Operating Costs decreased 0.6% y-o-y in 3Q20, due to lower costs with commercial expenses, mainly reflecting the growing digitalization and automation of customer service activities and lower commercial activity.
Recurring EBITDA totaled R$4,322 million (-3.5% y-o-y) in 3Q20, with a recurring EBITDA margin of 40.0%.
Investments of R$1,803 million in 3Q20, focused on the expansion of the fiber-to-the-home network and the quality and capacity of the 4G and 4.5G networks.
Net Income of R$1,212 million in 3Q20, up 25.5% y-o-y. Profit distribution based on 9M20 profit reaches R$2.0 billion.
Free Cash Flow after Leasing payments reached R$3,540 million in the quarter and R$8,901 million in 9M20 (+34.5% y-o-y and 50.1% y-o-y, respectively), as a result of Capex optimization and lower operating, financial and tax payments.
Financial services: launch of Vivo Money, a 100% digital platform, focused on offering fast and simple personal loans to postpaid customers.
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
SOURCE Telefônica Brasil
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