Telefônica Brasil announces its results for 1Q24
Fixed revenue maintained its positive performance (+1.6% YoY), driven by the increase in FTTH Revenue, which continued to expand strongly (+14.7% YoY) in 1Q24, because of investments in network deployment and fiber customer additions.
SÃO PAULO, May 7, 2024 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3; NYSE: VIV), announces its results for 1Q24:
1Q24 Results: Telefônica Brasil S.A.
Strong operating performance leading to above-inflation growth in revenues, EBITDA and net income
|
R$ million |
1Q24 |
1Q23 |
% Y-o-Y |
|
Net Operating Revenue |
13,546 |
12,721 |
6.5 |
|
Mobile Services |
8,702 |
7,965 |
9.3 |
|
FTTH |
1,717 |
1,496 |
14.7 |
|
Corporate Data, ICT and Digital Services |
1,132 |
1,093 |
3.5 |
|
Handsets and Electronics |
881 |
854 |
3.1 |
|
Other Revenues¹ |
1,114 |
1,312 |
(15.1) |
|
Total Costs |
(8,269) |
(7,778) |
6.3 |
|
EBITDA |
5,277 |
4,942 |
6.8 |
|
EBITDA Margin |
39.0 % |
38.9 % |
0.1 p.p |
|
EBITDA After Leases (AL) |
4,047 |
3,784 |
7.0 |
|
EBITDA AL Margin |
29.9 % |
29.7 % |
0.1 p.p |
|
Net Income attributed to TelefônicaBrasil |
896 |
835 |
7.3 |
|
Earnings per Share (EPS) |
0.54 |
0.50 |
7.9 |
|
CAPEXex-IFRS 16 |
1,874 |
1,686 |
11.2 |
|
Operating Cash Flow (OpCF) |
3,403 |
3,256 |
4.5 |
|
OpCF Margin |
25.1 % |
25.6 % |
(0.5) p.p |
|
Operating Cash Flow AL (OpCF AL) |
2,173 |
2,097 |
3.6 |
|
OpCF AL Margin |
16.0 % |
16.5 % |
(0.4) p.p |
|
Free Cash Flow |
2,380 |
3,130 |
(24.0) |
|
Total Subscribers (Thousand) |
113,481 |
112,280 |
1.1 |
1 – Other Revenues includes Voice, xDSL, FTTC and IPTV.
Net revenue continues to grow above inflation (+6.5% YoY), led by the strong performance of Mobile Service Revenue (MSR) (+9.3 YoY), driven by the double-digit growth of Postpaid Revenue (+11.4% YoY). Postpaid's strong performance is related to the increase in customer base (+6.6% YoY), both due to migrations from prepaid as well as through the acquisition of new customers, annual price adjustments, and by maintaining postpaid's (ex-M2M) churn in its lowest historical level, 0.97% per month.
Fixed revenue maintained its positive performance (+1.6% YoY), driven by the increase in FTTH Revenue, which continued to expand strongly (+14.7% YoY) in 1Q24, because of investments in network deployment and fiber customer additions. FTTH network is currently present in 443 cities (+7 cities YoY) with 26.8 million homes passed (+10.0% YoY) and 6.3 million homes connected (+12.3% YoY).
EBITDA totaled R$5,277 million (+6.8% YoY), with a margin of 39.0% (+0.1 p.p. YoY), due to the strong service revenue performance.
Operating Cash Flow totaled R$3,403 million (+4.5% YoY), with a margin of 25.1% (-0.5 p.p. YoY) over net revenue. In 1Q24, Capex ex-IFRS16 totaled R$1,874 million (+11.2% YoY) or 13.8% of revenues (+0.6 p.p. YoY), directed towards strengthening our mobile network.
Net income attributed to Telefônica Brasil reached R$896 million in 1Q24 (+7.3% YoY). Shareholder remuneration paid up to April reached R$2,190 million, related to previous interest on capital deliberations. Additionally, R$1,500 million from the resources resulting from the capital reduction will be paid on July 10th, 2024, while R$53 million were invested in share buybacks. For the years 2024 to 2026, the Company has committed to distribute 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.
