PR Newswire
SÃO PAULO , May 9, 2023 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3; NYSE: VIV), announces its results for 1Q23.
Solid operating performance leads to the highest revenue growth in over a decade, as core services accelerate
R$ million | 1T23 | 1T22 | % Y-o-Y |
Net Operating Revenues | 12,721 | 11,352 | 12.1 |
Core Revenue | 11,873 | 10,285 | 15.4 |
Mobile Revenue | 8,819 | 7,581 | 16.3 |
Fixed Core Revenue | 3,054 | 2,704 | 13.0 |
Non-Core Revenue | 848 | 1,067 | (20.5) |
Total Costs | (7,778) | (6,840) | 13.7 |
EBITDA | 4,942 | 4,511 | 9.6 |
EBITDA Margin | 38.9 % | 39.7 % | (0.9) p.p. |
Net Income | 835 | 750 | 11.3 |
Capex | Ex- IFRS 16 and Licenses | 1,686 | 1,880 | (10.3) |
Operating Cash Flow (OpCF) | 3,256 | 2,631 | 23.7 |
OpCF/Net Revenue Margin | 25.6 % | 23.2 % | 2.4 p.p. |
Free Cash Flow | 3,130 | 2,477 | 26.4 |
| | | |
Total Subscribers (thousand) | 112,280 | 99,942 | 12.3 |
Core Subscribers | 104,984 | 91,833 | 14.3 |
Non-Core Subscribers | 7,296 | 8,109 | (10.0) |
Net Revenue had its largest yearly growth rate of +12.1% in over a decade. This growth was led by Mobile Service Revenue, which increased 15.9% YoY. Postpaid Revenue and Prepaid Revenue grew on an annual comparison +15.4% and +18.0% respectively. These increases were driven by the expansion of the customer base, annual price readjustments and churn in historic low levels. Customer base totaled 112 million accesses (12.3% YoY) of which 98 million were mobile accesses (+14.9% YoY).
This quarter we highlight our fiber and postpaid convergent offer, Vivo Total , that registered a monthly churn rate of 0.39% , in comparison with our standalone offers, this rate is much lower. In addition, our Digital B2B Revenues now represent 6.4% of all revenues , expanding at an ever-growing rate. In the B2C segment, we achieved the mark of more than 2.2 million video and music OTTs subscriptions increasing revenues in +53% YoY.
Net Fixed Revenue grew 3.5% YoY, due to the higher representativeness of Core Fixed Revenue ( +13.0% YoY ), which now corresponds to 78.3% (+6.6 p.p. YoY) of net fixed revenue. Fixed revenues grew the most since 3Q15, resulting from the strategic decision to focus on the fiber business and B2B digital services expansion. FTTH Revenue grew +17.7% YoY as our FTTH network reached 95 new cities YoY, now present in 436 Brazilian cities, with 24.4 million homes passed and 5.7 million homes connected .
Due to strong mobile performance, EBITDA demonstrated an increase of +9.6% YoY, while Total Costs expanded +13.7% YoY , being impacted by changes in revenue mix and inflation. Operating Cash Flow grew 23.7% YoY, highlighting the lower Capex (-10.3% YoY) in the quarter.
Net income grew 11.3% compared to the same period of last year, reaching R$835 million in 1Q23. Shareholder remuneration declared up to April 2023 hit R$1,295 million , of which R$827 million were in dividends, R$396 million in interest on capital and R$72 million in share buybacks.
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
SOURCE Telefônica Brasil S.A.