4Q21 Results: Telefônica Brasil S.A.

Rhea-AI Summary

Telefônica Brasil (NYSE: VIV) reported a net income of R$6.2 billion for 4Q21, marking a significant 30.6% increase from 2020. The company achieved net operating revenues of R$11.5 billion, a 2.8% rise year-on-year. Mobile revenues grew by 3.7%, with postpaid customers reaching 49.6 million. Total costs rose 4% but remained below inflation. The recurring EBITDA was R$4.933 billion, yielding a margin of 42.9%. Free cash flow stood at R$7.4 billion, and dividends of R$6.3 billion were distributed, translating to a 7.7% yield.

Positive

• Net income increased by 30.6% to R$6.2 billion.
• Net operating revenues rose by 2.8% to R$11.5 billion.
• Mobile revenue grew by 3.7%, driven by postpaid and handset sales.
• Recurring EBITDA totaled R$4.933 billion with a margin of 42.9%.
• Free cash flow after lease payments reached R$7.4 billion.
• Dividend distribution of R$6.3 billion resulted in a 7.7% yield.

Negative

• Total costs increased by 4%, which could impact future margins.

SÃO PAULO, Feb. 22, 2022 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3; NYSE: VIV), announces its results for 4Q21 and 2021. 

Net income amounted to R$6.2 billion, a 30.6% increase from 2020, with the largest customer base ever

R$ million	4Q21	4Q20	% y-o-y	2021	2020	% y-o-y
Net Operating Revenues	11.501	11.193	2,8	44.033	43.126	2,1
Core Revenue	10.415	9.828	6,0	39.319	37.030	6,2
Mobile Revenue	7.847	7.569	3,7	29.376	28.421	3,4
Fixed Core Revenue	2.568	2.259	13,7	9.942	8.609	15,5
Non-Core Revenue	1.086	1.365	(20,4)	4.714	6.096	(22,7)
Total Costs	(6.568)	(6.316)	4,0	(26.005)	(25.394)	2,4
Reported Total Costs	(6.568)	(6.316)	4,0	(25.025)	(25.318)	(1,2)
Recurring EBITDA	4.933	4.877	1,2	18.027	17.733	1,7
Recurring EBITDA Margin	42,9%	43,6%	(0,7) p.p.	40,9%	41,1%	(0,2) p.p.
Reported EBITDA	4.933	4.877	1,2	19.007	17.808	6,7
Reported EBITDA Margin %	42,9%	43,6%	(0,7) p.p.	43,2%	41,3%	1,9 p.p.
Net Income	2.628	1.293	103,2	6.229	4.771	30,6
Capex  | Ex- IFRS 16	2.339	2.429	(3,7)	8.685	8.685	11,5
Free Cash Flow after Lease Payments	737	708	4,1	7.438	7.438	(18,6)
Total Subscribers (thousand)	98.760	95.051	3,9	98.760	98.760	3,9
Core Subscribers	90.373	84.507	6,9	90.373	90.373	6,9
Non-Core Subscribers	8.387	10.544	(20,5)	8.387	8.387	(20,5)

Mobile customer base reached 83.9 million accesses, +5.4 million compared to 4Q20, the highest historical level. Postpaid accesses reached 49.6 million, representing 59.1% of the total mobile customer base.

Vivo reached 4.6 million (+36.4% y-o-y) homes connected with FTTH, 1.2 million net additions in 2021. Currently, Vivo's FTTH coverage is available in 327 cities (+61 cities in 2021), with 19.6 million homes passed.

Net revenue increased +2.8% y-o-y, with higher representativeness of the core businesses which now accounts for 90.6% (+2.7 p.p.) of total revenues. Mobile revenue grew 3.7% y-o-y driven by postpaid (3.9% y-o-y) and handset sales (+8.8% y-o-y). Core fixed revenue was boosted by the 31.2% y-o-y increase in FTTH revenues.

Total Costs increased 4.0% in the year, below inflation (IPCA-12M), which rose 10.1%. Given the controlled provisioning for bad debt, digitalization and efficiency initiatives, costs from operations had a -1.6% decline y-o-y.

EBITDA totaled R$4,933 million (+1.2% y-o-y) in 4Q21, with a recurring EBITDA margin of 42.9%.

Net income totaled R$6.2 billion, (+30.6% y-o-y) and Free Cash Flow after Leasing payments amounted R$7.4 billion in 2021, reflecting an efficient financial management. Dividend distribution of R$6.3 billion, representing a dividend yield of 7.7% and dividend payout of 101%.

Approval of the new Share Buyback Program and of the cancellation of treasury shares (14,046,652 shares or 0.83% of the capital stock).

To download the complete version of the Company's earnings release, please visit our website: http://www.telefonica.com.br/ir

View original content:https://www.prnewswire.com/news-releases/4q21-results-telefonica-brasil-sa-301488057.html

SOURCE Telefônica Brasil

FAQ

What were the 4Q21 results for Telefônica Brasil (VIV)?

Telefônica Brasil reported a net income of R$6.2 billion for 4Q21, a 30.6% increase from the previous year.

How much did Telefônica Brasil's net operating revenues grow in 2021?

Net operating revenues increased by 2.8% to R$11.5 billion in 2021.

What was the free cash flow for Telefônica Brasil in 2021?

The free cash flow after lease payments amounted to R$7.4 billion in 2021.

What is the dividend yield for Telefônica Brasil (VIV)?

The dividend yield for Telefônica Brasil is 7.7%, with a total distribution of R$6.3 billion.

How did Telefônica Brasil's mobile revenue perform in 4Q21?

Mobile revenue grew by 3.7% year-on-year, supported by an increase in postpaid customers.