Telefônica Brasil - (B3: VIVT3; NYSE: VIV), announces its results for 2Q23.
Strong Net Revenue growth combined with cost discipline leads to a double-digit EBITDA expansion
SÃO PAULO, July 25, 2023 /PRNewswire/ --
|
R$ million
|
2Q23
|
2Q22
|
% Y-o-Y
|
6M23
|
6M22
|
% Y-o-Y
|
|
|
|
|
|
|
|
|
Net Operating Revenues
|
12,733
|
11,831
|
7.6
|
25,454
|
23,183
|
9.8
|
|
Core Revenue
|
11,913
|
10,839
|
9.9
|
23,785
|
21,124
|
12.6
|
|
Mobile Revenue
|
8,927
|
8,110
|
10.1
|
17,746
|
15,691
|
13.1
|
|
Fixed Core Revenue
|
2,986
|
2,729
|
9.4
|
6,039
|
5,433
|
11.2
|
|
Non-Core Revenue
|
820
|
992
|
(17.4)
|
1,668
|
2,059
|
(19.0)
|
|
Total Costs
|
(7,648)
|
(7,253)
|
5.4
|
(15,426)
|
(14,093)
|
9.5
|
|
EBITDA
|
5,085
|
4,578
|
11.1
|
10,027
|
9,090
|
10.3
|
|
EBITDA Margin
|
39.9 %
|
38.7 %
|
1.2 p.p
|
39.4 %
|
39.2 %
|
0.2 p.p
|
|
Net Income (Consolidated)
|
1,121
|
746
|
50.3
|
1,956
|
1,496
|
30.8
|
|
Net (Income)/Loss of non-controlling shareholders
|
2
|
17
|
(91.2)
|
2
|
23
|
(93.1)
|
|
Net Income Controlling Shareholders
|
1,123
|
763
|
47.2
|
1,957
|
1,519
|
28.9
|
|
|
|
|
|
|
|
|
Capex | Ex- IFRS 16 and Licenses
|
2,353
|
2,575
|
(8.6)
|
4,039
|
4,455
|
(9.3)
|
|
Operating Cash Flow (OpCF)
|
2,732
|
2,003
|
36.4
|
5,988
|
4,634
|
29.2
|
|
OpCF/Net Revenue Margin
|
21.5 %
|
16.9 %
|
4.5 p.p
|
23.5 %
|
20.0 %
|
3.5 p.p
|
|
Free Cash Flow
|
2,508
|
2,157
|
16.3
|
5,638
|
4,634
|
21.7
|
|
|
|
|
|
|
|
|
Total Subscribers (thousand)
|
111,940
|
113,706
|
(1.6)
|
111,940
|
113,706
|
(1.6)
|
|
Core Subscribers
|
104,767
|
105,821
|
(1.0)
|
104,767
|
105,821
|
(1.0)
|
|
Non-Core Subscribers
|
7,173
|
7,885
|
(9.0)
|
7,173
|
7,885
|
(9.0)
|
Net Revenue grew +7.6%, led by Mobile Service Revenue, which had a double-digit growth (+10.4% YoY). Postpaid Revenue increased +13.3% on an annual comparison, positively impacted by the expansion of the customer base, annual price readjustments and churn at historic low levels, at 1.00%. In July 2023, there was the launch of three Vivo Hybrid plans with entertainment and healthcare options.
Core Fixed Revenuerose by +9.4% year-on-year, driven by FTTH Revenue (+14.3% YoY) and Corporate Data, ICT and Other revenue(+15.1% YoY). Vivo's FTTH network reached 24.7 millionhomes passed (+17.2% YoY) and 5.8 millionhomes connected (+15.1% YoY). Vivo Total, the fiber and postpaid convergent offer, represented 80% of our fiber gross adds in Vivo's stores and registered a monthly churn rate of 0.39%.
EBITDAtotaled R$5,085 million, a double-digit increase (+11.1% YoY) in 2Q23 with a margin of 39.9% (+1.2 p.p. YoY) due to the strong mobile service performance. Total Costsgrowth decelerated in the quarter (+5.4% YoY) mainly due to operational efficiency and ongoing digitalization initiatives. Operating Cash Flow grew +36.4% YoY, highlighting the lower Capex (-8.6% YoY), maintaining its guided level of below R$9 billion for 2023.
Shareholder remuneration declared up to July 2023 hit R$2,161 million, of which R$1,121 million were in interest on capital, R$827 million in dividends and R$213 million in share buybacks, reaffirming the Company's commitment to maximizing shareholder's return.
Net income attributable to controlling shareholders had a strong growth of +47.2% compared to the same period of last year, reaching R$1,123 million in 2Q23, due to the strong evolution of EBIT and lower financial expenses.
CONTACT: David Melcon Sanchez-Friera, CFO and Investor Relations Officer, Telephone: +55 11 3430-3687, Email: ir.br@telefonica.com
To download the complete version of the Company's earnings release, please visit our website: https://ri.telefonica.com.br/en
View original content:https://www.prnewswire.com/news-releases/2q23-results-telefonica-brasil-sa-301885716.html
SOURCE Telefônica Brasil S.A.
