PR Newswire
SÃO PAULO , Oct. 31, 2023 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3; NYSE: VIV), announces its results for 3Q23.
Double-digit net income and free cash flow growth in 9M23, combined with strong shareholder remuneration
R$ million | 3Q23 | 3Q22 | % Y-o-Y | 9M23 | 9M22 | % Y-o-Y |
| | | | | | |
Net Operating Revenue | 13,112 | 12,199 | 7.5 | 38,565 | 35,382 | 9.0 |
Core Revenue | 12,335 | 11,256 | 9.6 | 36,120 | 32,380 | 11.6 |
Mobile Revenue | 9,279 | 8,480 | 9.4 | 27,025 | 24,172 | 11.8 |
Fixed core revenue | 3,056 | 2,776 | 10.1 | 9,095 | 8,209 | 10.8 |
Non-core Revenue | 777 | 943 | (17.6) | 2,445 | 3,002 | (18.5) |
Total Costs | (7,573) | (7,242) | 4.6 | (22,999) | (21,335) | 7.8 |
EBITDA | 5,539 | 4,957 | 11.7 | 15,566 | 14,047 | 10.8 |
EBITDA / Net Revenue Margin | 42.2 % | 40.6 % | 1.6 p.p. | 40.4 % | 39.7 % | 0.7 p.p. |
Net Income | 1,472 | 1,440 | 2.2 | 3,429 | 2,959 | 15.9 |
Earnings per Share (EPS) | 0.89 | 0.86 | 2.9 | 2.07 | 1.77 | 16.6 |
| | | | | | |
CAPEX ex-IFRS 16 | 2,626 | 2,586 | 1.5 | 6,665 | 7,041 | (5.3) |
Operating Cash Flow (OCF) | 2,913 | 2,371 | 22.9 | 8,901 | 7,006 | 27.1 |
OCF / Net Revenue Margin | 22.2 % | 19.4 % | 2.8 p.p. | 23.1 % | 19.8 % | 3.3 p.p. |
Free Cash Flow | 1,918 | 1,839 | 4.3 | 7,556 | 6,473 | 16.7 |
| | | | | | |
Core Revenue / Net Revenue | 94.1 % | 92.3 % | 1.8 p.p. | 93.7 % | 91.5 % | 2.1 p.p. |
Non-core Revenue / Net Revenue | 5.9 % | 7.7 % | (1.8) p.p. | 6.3 % | 8.5 % | (2.1) p.p. |
| | | | | | |
Total Subscribers (Thousand) | 111,582 | 111,688 | (0.1) | 111,582 | 111,688 | (0.1) |
Core Subscribers | 104,701 | 104,070 | 0.6 | 104,701 | 104,070 | 0.6 |
% / total accesses | 93.8 % | 93.2 % | 0.7 p.p. | 93.8 % | 93.2 % | 0.7 p.p. |
Non-core Subscribers | 6,881 | 7,618 | (9.7) | 6,881 | 7,618 | (9.7) |
% / total accesses | 6.2 % | 6.8 % | (0.7) p.p. | 6.2 % | 6.8 % | (0.7) p.p. |
Strengthening of leadership in mobile with 98 million accesses. In the postpaid segment ( ex-M2M ), market share at the end of August/23 was 43.6% (+1.9 p.p. YoY), while churn in 3Q23 remained at historically low levels, at 1.09% . The FTTH network is currently present in 439 cities (+59 cities YoY) with 25.1 million homes passed (+12.9% YoY) and 6.0 million homes connected (+13.5% YoY).
Net revenues continue to grow above inflation ( +7.5% YoY ) driven by mobile service revenue ( +9.0 YoY ). Mobile Service Revenue growth was mainly boosted by Postpaid Revenue (+12.7% YoY), which was positively impacted by the customer base increase, annual price adjustments and churn at historic low levels. Fixed revenue maintained its positive performance, increasing +3.1% YoY , driven by FTTH revenues ( +15.1% YoY ) and Corporate Data, ICT and Other revenues ( +14.7% YoY ).
EBITDA grew +11.7% YoY , with a margin of 42.2% (+1.6 p.p. YoY), due to strong performance of core revenues ( +9.6% YoY ) and cost control ( +4.6% YoY ) in the quarter, as well as the positive net effect of R$175 million in 3Q23 , related to the post-closing price adjustment agreement from the acquisition of part of Oi Mobile's assets.
In 9M23, Operating Cash Flow totaled R$8,901 million (+27.1% YoY), with a margin of 23.1% (+3.3 p.p. YoY) over net revenue. Investments totaled R$6,665 million (-5.3% YoY) or 17.3% of revenues (-2.6 p.p. YoY), maintaining the guided Investment level below R$9 billion in 2023.
Net income reached R$3,429 million in 9M23 (+15.9% YoY). Shareholder remuneration declared up to October 2023 hit R$2,870 million , of which R$1,736 million were in interest on capital, R$827 million in dividends and R$308 million in share buybacks. In September 2023 , ANATEL approved the request for prior consent to allow the Company to reduce its capital stock in one or more events, subject to the management's assessment, in a total amount of up to R$5 billion .
New sources of revenue (Digital B2B, Financial Services¹, Video + Music OTTs and Electronics) are growing fast and gaining relevance in our top-line mix. Digital B2B Revenues totaled R$3.2 billion in the LTM (+ 28.2% YoY), with important upside potential.
TELEFÔNICA BRASIL – Investor Relations
Christian Gebara
David Melcon
João Pedro Soares Carneiro
Gabriel Figueiredo Menezes
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
CONTACT: David Melcon Sanchez-Friera , CFO and Investor Relations Officer, Telephone: +55 11 3430-3687, Email: ir.br@telefonica. com
SOURCE Telefônica Brasil S.A.