4Q20 Results: Telefônica Brasil S.A.

Rhea-AI Summary

Telefônica Brasil (NYSE: VIV) announced its 4Q20 and full-year 2020 financial results, revealing a dip in net operating revenues, down 1.6% year-on-year for 4Q and 2.6% for the year. Mobile revenues increased by 1.6%, while fixed revenues fell by 7.7% in the fourth quarter. EBITDA stood at R$4,877 million, with a margin of 43.6%. The company achieved a net income of R$1,293 million for the quarter but a decline of 4.6% for the year, totaling R$4,771 million. Notably, free cash flow rose 12.6% to a record R$9,610 million, and a dividend payout of 113.6% was proposed for shareholders.

Positive

• Free cash flow reached R$9,610 million, up 12.6% y-o-y, indicating strong cash generation.
• Recurring EBITDA totaled R$4,877 million (+0.8% y-o-y) with an EBITDA margin of 43.6%.
• Mobile service revenues are recovering with a growth of 2.1% y-o-y.
• Fiber-to-the-home customers increased by 36% y-o-y, driving revenue growth in this segment (+52.9% y-o-y).
• Proposed shareholder remuneration of R$5,418 million represents a payout of 113.6% and a dividend yield of 7.0%.

Negative

• Net operating revenues fell by 1.6% y-o-y in 4Q and 2.6% for the full year.
• Net fixed revenues declined by 7.7% in 4Q and 5.7% for the year.
• Net income for 2020 decreased by 4.6% y-o-y.

SÃO PAULO, Feb. 23, 2021 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3 [Common Shares]; NYSE: VIV), announces its results for 4Q20 and 2020. 

Leadership reaffirmed in mobile and fiber, combined with strong financial performance and shareholder remuneration

R$ million	4Q20	% y-o-y	2020	% y-o-y
Net Operating Revenues	11,193	(1.6)	43,126	(2.6)
Net Mobile Revenues	7,569	1.6	28,421	(0.9)
Net Fixed Revenues	3,623	(7.7)	14,705	(5.7)
Operating Costs	(6,316)	(1.5)	(25,318)	(3.4)
Recurring Operating Costs	(6,316)	(3.4)	(25,394)	(3.5)
EBITDA	4,877	(1.8)	17,808	(1.8)
EBITDA Margin	43.6%	(0.1) p.p.	41.3%	0.3 p.p.
Recurring EBITDA	4,877	0.8	17,733	(1.2)
Recurring EBITDA Margin %	43.6%	1.0 p.p.	41.1%	0.6 p.p.
Net Income	1,293	1.5	4,771	(4.6)
Capex  Ex- Licenses | Ex- IFRS 16	2,429	3.1	7,789	(11.9)
Free Cash Flow after Lease Payments	708	(72.8)	9,610	12.6
Total Subscribers (thousand)	95,051	1.5	95,051	1.5
Mobile subscribers	78,532	5.3	78,532	5.3
Fixed subscribers	16,519	(13.3)	16,519	(13.3)
Core Revenues	9,828	3.2	37,030	1.5
Core Revenues / Net Operating Revenues	87.8%	4.1 p.p.	85.9%	3.5 p.p.
Non-core Revenues	1,365	(26.4)	6,096	(21.7)
Non-core Revenues / Net Operating Revenues	12.2%	(4.1) p.p.	14.1%	(3.5) p.p.

Mobile market share reached 33.6% in December 2020 and remains at historic highs. Postpaid accesses grew 3.9% y-o-y and accounted for 57% of total mobile accesses, with a market share of 37.7% in December 2020 and the lowest churn in 5 years.

Fiber-to-the-home broadband customers totaled 3,378 thousand (+36% y-o-y), posting accelerated additions of high-quality customers in 4Q20. FTTH ARPU increased 13% versus 4Q19, reaching R$91.9.

Core businesses represented 88% of total revenues with increasing relevance. FTTH revenues continue to grow significantly (+52.9% y-o-y) while mobile service revenues are showing solid recovery growing 2.1% y-o-y.

Operating Costs decreased 3.4% y-o-y in 4Q20, driven by digitalization and automation initiatives.

Recurring EBITDA totaled R$4,877 million (+0.8% y-o-y) in 4Q20, with a recurring EBITDA margin of 43.6%.

Investments of R$7,789 million in 2020, focused on the expansion of the FTTH network and the capacity of the 4G and 4.5G networks.

Net Income of R$1,293 million in 4Q20, up 1.5% y-o-y. In 2020, net income reached R$4,771 million, down 4.6% y-o-y. Proposed shareholder remuneration based on 2020 profit reaches R$5,418 million, representing a payout of 113.6%, with a dividend yield of 7.0%.

Free Cash Flow after Leasing payments reached R$9,610 million in 2020 (+12.6% y-o-y), the highest ever cash generation as a result of Capex optimization and lower operating, financial and tax payments.

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/4q20-results-telefonica-brasil-sa-301234072.html

SOURCE Telefônica Brasil

FAQ

What are the financial results of Telefônica Brasil for 4Q20?

Telefônica Brasil reported net operating revenues of R$11,193 million for 4Q20, a 1.6% decline year-on-year.

How did Telefônica Brasil perform in terms of EBITDA in 4Q20?

The company's EBITDA for 4Q20 was R$4,877 million, reflecting an increase of 0.8% compared to the previous year.

What is the net income of Telefônica Brasil for 4Q20?

Telefônica Brasil posted a net income of R$1,293 million in 4Q20, a year-on-year increase of 1.5%.

How much free cash flow did Telefônica Brasil generate in 2020?

In 2020, Telefônica Brasil achieved free cash flow of R$9,610 million, a significant increase of 12.6% year-on-year.

What is the proposed dividend yield for Telefônica Brasil shareholders based on 2020 profit?

The proposed dividend yield for Telefônica Brasil shareholders is 7.0%, with a total remuneration of R$5,418 million.