2Q23 Results: Telefônica Brasil S.A.
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 Revenue rose 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 million homes passed (+17.2% YoY) and 5.8 million homes 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%.
EBITDA totaled 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 Costs growth 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
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SOURCE Telefônica Brasil S.A.
