3Q20 Results: Telefônica Brasil S.A.
Operating Costsdecreased 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.
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 / [email protected]
To download the complete version of the Company's earnings release, please visit our website: http://www.telefonica.com.br/ir
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SOURCE Telefônica Brasil