SÃO PAULO, July 24, 2019 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3 [Common Shares] / VIVT4 [Preferred Shares]; NYSE: VIV), announces its results for 2Q19.
Change in revenue mix, focused on high-end services, coupled with digitalization, cost efficiency programs and excellent financial management ensured margin growth, double-digit growth in cash flow and unparalleled shareholder remuneration
Consolidated in R$ million | 2Q19 | % y-o-y |
Net Operating Revenues | 10,870 | 0.4 |
Net Mobile Revenues | 6,972 | 2.3 |
Net Handset Revenues | 631 | 31.9 |
Net Fixed Revenues | 3,897 | (2.8) |
Recurring Operating Costs | (7,079) | 0.1 |
Recurring EBITDA | 3,791 | 1.0 |
Recurring EBITDA Margin % | 34.9% | 0.2 p.p. |
Recurring Net Income | 1,420 | 26.4 |
Free Cash Flow | 2,220 | 11.0 |
Total Accesses (thousand) | 94,364 | (3.5) |
Mobile accesses | 73,744 | (2.0) |
Fixed accesses | 20,619 | (8.5) |
Mobile market share of 32.2% in May 2019 (7.5 p.p. higher than the second player). Postpaid accesses grew 8.5%, accounting for 56.6% of total mobile accesses, with a market share of 40.0% in May 2019.
Broadband accesses totaled 7,268 thousand customers in 2Q19 and FTTH accesses grew 37.9% y-o-y, with 136 thousand net additions in the 2Q19. Broadband ARPU moved up 14.2% over 2Q18 reaching R$63.3. up 14.2% over 2Q18 rea
Net revenues rose 0.4% y-o-y, reflecting the performance of postpaid, terminals and FTTH revenues. Mobile revenues increased 2.3% y-o-y, driven by growth in ARPU, postpaid accesses and handset sales.
Recurring operating costs increased 0.1% y-o-y mainly due to higher expenses related to handset sales, offset by simplification, efficiency and digitalization initiatives. Excluding the cost of goods sold, total costs fell 2.4% y-o-y.
Recurring EBITDA totaled R$ 3,791 million in 2Q19, up 1.0% y-o-y, with an EBITDA margin of 34.9% (+0.2 p.p. y-o-y).
Capex totaled R$ 2,360 million in 2Q19, focused on FTTH and expansion of 4G/4.5G coverage and capacity.
Recurring reported net income grew 26.4% y-o-y in 2Q19, to R$ 1,420 million. Interest on equity of R$ 2,238 million already declared in the first half of 2019.
Free cash flow moved up 11.0% y-o-y, to R$ 2,220 million in 2Q19, driven by EBITDA growth and lower tax expenses.
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
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SOURCE Telefônica Brasil S.A.