1Q21 Results: Telefônica Brasil S.A.

Rhea-AI Summary

Telefônica Brasil (B3: VIVT3; NYSE: VIV) reported a positive 1Q21, with net revenues increasing by 0.2% year-on-year to R$10,849 million, driven by growth in fiber and core businesses. Key metrics include a 4.7% increase in core revenue to R$9,563 million and a significant 17.2% rise in fixed core revenue. EBITDA rose to R$4,455 million (+0.5% y-o-y) with a margin of 41.1%. Free cash flow improved by 3.7% to R$2,199 million. Shareholder remuneration declared reached R$700 million, yielding a 7.9% dividend. The company continues to expand its digital service offerings.

Positive

• Net revenues increased by 0.2% y-o-y to R$10,849 million.
• Core revenue rose 4.7% y-o-y to R$9,563 million.
• Fixed core revenue grew 17.2% y-o-y.
• Recurring EBITDA increased by 0.5% to R$4,455 million.
• Free cash flow after lease payments rose 3.7% to R$2,199 million.
• Shareholder remuneration of R$700 million represents a dividend yield of 7.9%.
• Total subscribers reached 95,809 thousand (+2.9% y-o-y).

Negative

• Net income decreased by 18.3% to R$942 million.
• Non-core revenue fell by 24.1% y-o-y.

SAO PAULO, May 11, 2021 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3 [Common Shares]; NYSE: VIV), announces its results for 1Q21. 

Net revenue shows an inflection point and resumes growth in the quarter, driven by record revenues in fiber

R$ million	1Q21	% y-o-y
Net Operating Revenues	10,849	0.2
Core Revenue	9,563	4.7
Mobile Revenue	7,147	1.1
Fixed Core Revenue	2,416	17.2
Non-Core Revenue	1,286	(24.1)
Total Costs	(6,394)	1.2
Recurring Total Costs	(6,394)	0.0
Recurring EBITDA	4,455	0.5
Recurring EBITDA Margin	41.1%	0.1 p.p.
Reported EBITDA	4,455	(1.1)
Reported EBITDA Margin %	41.1%	(0.6) p.p.
Net Income	942	(18.3)
Capex | Ex- IFRS 16	1,943	18.0
Free Cash Flow after Lease Payments	2,199	3.7
Total Subscribers (thousand)	95,809	2.9
Core Subscribers	85,816	6.6
Non-Core Subscribers	9,993	(20.4)

Mobile market share reached 33.1% in March 2021, maintaining undisputed leadership in the mobile business. Postpaid accesses grew 5.2% y-o-y and accounted for 57.7% of total mobile accesses, with a market share of 37.0% in March 2021.

Fiber-to-the-home broadband customers totaled 3,746 thousand (+41.2% y-o-y), posting accelerated additions of high-quality customers in 1Q21. FTTH Revenues increased 61.2% versus 1Q20, reaching the record of R$1,010 million.

Net revenues resume growth (+0.2% y-o-y), underlining the successful transformation of revenue profile. Core businesses represented 88% of total revenues with increasing relevance. Core fixed revenues continue to grow significantly (+17.2% y-o-y) while mobile revenues are showing solid recovery (+1.1% y-o-y).

Total Costs remained flat in 1Q21, despite the accelerated inflation, as Company's efficient cost management compensated higher cost of goods and services sold.

Recurring EBITDA totaled R$4,455 million (+0.5% y-o-y) in 1Q21, with a recurring EBITDA margin of 41.1%.

Investments of R$1,943 million in 1Q21, focused on the expansion of the FTTH network and the capacity of the 4G and 4.5G networks.

Shareholder remuneration declared until April-21 reaches R$700 million, representing a dividend yield of 7.9%.

Free Cash Flow after Leasing payments reached R$2,199 million in 1Q21 (+3.7% y-o-y), reflecting efficient financial management.

Launch of Vivo Pay and Vida V, and partnerships with Dotz, CDF and Itaucard, strengthen Vivo's positioning as a digital services hub.

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

View original content:http://www.prnewswire.com/news-releases/1q21-results-telefonica-brasil-sa-301289251.html

SOURCE Telefônica Brasil

FAQ

What were Telefônica Brasil's net revenues in 1Q21?

Telefônica Brasil reported net revenues of R$10,849 million in 1Q21, an increase of 0.2% year-on-year.

How did core revenue perform for Telefônica Brasil in 1Q21?

Core revenue rose by 4.7% year-on-year, reaching R$9,563 million.

What is the EBITDA margin for Telefônica Brasil in 1Q21?

The recurring EBITDA margin for Telefônica Brasil in 1Q21 was 41.1%.

How much free cash flow did Telefônica Brasil generate in 1Q21?

Telefônica Brasil generated free cash flow of R$2,199 million in 1Q21, a 3.7% increase from the previous year.

What was the shareholder remuneration declared by Telefônica Brasil?

The shareholder remuneration declared by Telefônica Brasil until April 2021 was R$700 million, resulting in a 7.9% dividend yield.