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Telefônica Brasil - Bovespa: VIVT3
Exchanges: Sao Paulo
 

Telefônica Brasil is the largest telecommunications company in the country, with more than 97.2 million accesses, 73.3 million in mobile business, in which it holds the largest market share in the segment (28.4% - data for March/16) in national context, and 23.9 million accesses in the fixed business, according to results of the quarterly earnings (1Q16). Telefônica Brasil provides fixed and mobile telecommunication services throughout the national territory and has a complete and convergent portfolio of products (fixed and mobile voice, fixed and mobile broadband, ultra broadband (Fiber to the Home – FTTH and Fiber to the Curb - FTTC), TV, data and IT).
We closed the quarter (1Q16) with more than 3.5 thousand cities with access to 3G network, exceeding by more than 50% the number of cities covered by the second player under this technology. In addition, we covered 183 cities with access to 4G network. Brazil, where it is present since 1998, is the largest world operation of Telefónica Group in numbers of accesses.
Telefónica Group is one of the largest telecommunication conglomerates in the world, with presence in 21 countries, 321.9 million accesses, approximately 129 thousand employees and revenues of 47.2 billion euros (2015).

http://telefonica.mediagroup.com

4Q16 Results: Telefônica Brasil S.A.

        
SAO PAULO, Feb. 21, 2017 /PRNewswire/ -- Telefônica Brasil - (Bovespa: VIVT3 [Common Shares] / VIVT4 [Preferred Shares]; NYSE: VIV), announces its results for the 4Q16. In 4Q16, Vivo maintains capture of synergies and efficiency initiatives, with solid margin expansion and cash flow generation.

Consolidated in R$ million 4Q16 % y-o-y 2016 % y-o-y
Net Operating Revenues 10,873.6 1.0 42,508.4 0.9
Net Operating Services Revenues 10,596.8  1.8  41,312.9  1.7
Net services mobile revenues 6,315.8  3.9  24,342.7 3.0
Net fixed revenues 4,281.0  (1.2)  16,970.2  (0.2)
Net handset revenues 276.9  (20.7)  1,195.6  (20.0)
Operating costs (7,250.3) (1.1) (28,486.0) (3.2)
Recurring Operating costs* (7,197.8) (1.8) (28,845.8) (1.9)
EBITDA 3,623.3 5.6  14,022.4 10.3
EBITDA Margin % 33.3% 1.4 p.p. 33.0% 2.8 p.p.
Recurring EBITDA* 3,675.8 7.1 13,662.6 7.3
Recurring EBITDA Margin %* 33.8% 1.9 p.p. 32.1% 1.9 p.p.
Net income 1,214.8 9.0 4,085.2 22.6
Number of accesses (thousand) 97,129 (0.1) 97,129 (0.1)
Mobile accesses 73,778 0.7 73,778 0.7
Fixed accesses 23,352 (2.4) 23,352 (2.4)

(*) Adjusted by the towers sale in the 1Q16 in the amount of R$513,5 million, provision for corporate restructure in 2Q16 in the amount of R$101.2 million, R$19.2 million in the 3Q15 and R$52.5 million in the 4Q16.

Market share expansion, reaching 30% in December 2016 (+1.8 p.p. y-o-y).

Mobile ARPU recorded y-o-y growth of 10.8% in 4Q16, fueled by the higher share of postpaid clients in the mix and the higher data usage, whose ARPU increased by 31.8% y-o-y in 4Q16, corresponding to 62.3% of total ARPU

Broadband accesses totaled 7.3 million customers in 4Q16 (+2.5% y-o-y), with FTTx* connections accounting for 57% of the base, accompanied by y-o-y growth of 9.3%. Broadband ARPU increased 7.5% in 4Q16 over 4Q15, influenced by the growth in the ultra-broadband customer base

Net operating service revenue grew 1.8% in 4Q16 over 4Q15 (4.2% up y-o-y excluding regulatory effects), and 1.7% in 2016 over 2015, maintaining the positive trajectory observed throughout the year.

Mobile services revenue rose 3.9% y-o-y in 4Q16. Excluding the effect from MTR reductions in 2016, this line increased 6.2% over 4Q15. Data and digital services revenue increased 23.7% y-o-y in 4Q16, accounting for 62% of mobile services revenue

Operating costs fell 1.1% in 4Q16 over 4Q15. Excluding the effect from the corporate restructuring in 4Q16, the reduction was 1.8% (LTM IPCA +6.3%), reflecting the continuous efforts to reduce costs by focusing on increasing efficiency and synergies

EBITDA totaled R$3.6 billion in 4Q16, 5.6% up on 4Q15, accompanied by an EBITDA margin of 33.3% (+1.4 p.p. y-o-y). Excluding the R$52.5 million non-recurring effect in 4Q16, EBITDA moved up by 7.1% over the previous year, with a margin growth of 1.9 p.p., fueled by the capture of synergies and efficiency initiatives. In 2016, recurring EBITDA totaled R$13,663 million (+7.3% y-o-y), accompanied by an EBITDA margin of 32.1% (+1.9 p.p. y-o-y)

CAPEX amounted to R$2.8 billion in 4Q16 and R$8.0 billion in 2016, excluding the investment in licenses made in the third quarter. EBITDA - Capex grew 28.2% in 2016 over 2015, reaching R$5.7 billion

The focus on executing synergies guaranteed the capture of 71% of NPV of best scenario and the full capture of the NPV of base scenario.

Net income totaled R$4,085 million in 2016 (+22.6% y-o-y), with IOC and dividends for the fiscal year amounting to R$4.1 billion, resulting in a payout of 105.6% on adjusted net income.
 
TELEFÔNICA BRASIL – Investor Relations
Eduardo Navarro
David Melcon
Luis Plaster
Maria Tereza David
+55 11 3430-3687 / ir.br@telefonica.com

Telefônica Brasil S.A.
Av. Eng. Luis Carlos Berrini, 1376 – 28º andar
São Paulo - 04571-936
Telefone: +55 11 7420-1172
E-mail: ri.telefonicabr@telefonica.com.br

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

SOURCE Telefonica Brasil S.A.

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