2Q20 Results: Telefônica Brasil S.A.
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PR Newswire
SÃO PAULO, July 29, 2020
SÃO PAULO, July 29, 2020 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3 [Common Shares] / VIVT4 [Preferred Shares]; NYSE: VIV), announces its results for 2Q20.
Investments focused on the future technologies maintaining solid cash generation in the quarter and maximizing shareholder profitability.
R$ million | 2Q20 | % y-o-y | 6M20 | % y-o-y |
Net Operating Revenues | 10,317 | (5.1) | 21,142 | (3.2) |
Net Mobile Revenues | 6,618 | (5.1) | 13,688 | (2.6) |
Net Handset Revenues | 373 | (40.9) | 954 | (22.4) |
Net Fixed Revenues | 3,700 | (5.1) | 7,454 | (4.3) |
Operating Costs | (6,214) | (5.9) | (12,532) | (5.2) |
Recurring Operating Costs | (6,214) | (5.9) | (12,608) | (4.6) |
EBITDA | 4,103 | (3.8) | 8,610 | (0.2) |
EBITDA Margin | 39.8% | 0.5 p.p. | 40.7% | 1.2 p.p. |
Recurring EBITDA | 4,103 | (3.8) | 8,534 | (1.1) |
Recurring EBITDA Margin % | 39.8% | 0.5 p.p. | 40.4% | 0.9 p.p. |
Net Income | 1,113 | (21.6) | 2,266 | (17.9) |
Free Cash Flow after Lease Payments | 2,772 | 27.3 | 5,362 | 62.6 |
Total Subscribers (thousand) | 92,012 | (2.5) | 92,012 | (2.5) |
Mobile subscribers | 74,408 | 0.9 | 74,408 | 0.9 |
Fixed subscribers | 17,603 | (14.6) | 17,603 | (14.6) |
Broadband accesses reached 6,554 thousand customers in 2Q20 and FTTH had record-breaking 210 thousand net additions, making the fiber subscriber base grow 31.9% y-o-y. Broadband ARPU increased 17.6% versus 2Q19, reaching R$ 74.5.
Mobile market share of 33.0% in May 2020, 8.6 p.p. more than the second player. Postpaid accesses grew 3.4%, accounting for 57.9% of total mobile accesses, with a market share of 38.9% in May 2020, up 14.2% over 2Q18.
FTTH and IPTV revenues continue to grow significantly (+47.6% y-o-y and +22.3% y-o-y, respectively) while the trend of mobile revenue growth was interrupted by lower commercial activity caused by the pandemic.
Operating costs decreased 5.9% y-o-y mainly due to lower commercial activity and lower commercial expenses due to digitalization and automation initiatives.
EBITDA totaled R$ 4,103 million in 2Q20, down 3.8% y-o-y, with an EBITDA margin of 39.8% (+0.5 p.p. y-o-y).
Capex totaled R$ 1,909 million in 2Q20, focused on the expansion of the FTTH network and increased quality and capacity of our 4G and 4.5G networks.
Net income stood at R$ 1,113 million in 2Q20 with profit distribution based on the 2Q20 reaching R$900 million.
Free cash flow after leasing grew 62.6% y-o-y, to R$ 5,362 million in 6M20.
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
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