SÃO PAULO, Feb. 19, 2020
/PRNewswire/ -- Telefônica Brasil - (B3: VIVT3 [Common Shares] /
VIVT4 [Preferred Shares]; NYSE: VIV), announces its results for
4Q19 and 2019.
Solid revenue growth, reflecting the performance of postpaid
revenues, handsets and FTTH, and costs under control due to our
digitalization and automation efforts, leading to strong EBITDA
growth and the highest FCF ever generated by Vivo
Consolidated in
R$ million
|
4Q19
|
%
y-o-y
|
2019
|
%
y-o-y
|
|
|
|
|
|
Net Operating
Revenues
|
11,377
|
2.6
|
44,268
|
1.9
|
Net Mobile Revenues
|
7,452
|
5.7
|
28,666
|
4.8
|
Net Handset Revenues
|
829
|
46.2
|
2,703
|
40.7
|
Net Fixed Revenues
|
3,925
|
(2.8)
|
15,602
|
(3.2)
|
Recurring Operating
Costs
|
(7,026)
|
1.0
|
(28,228)
|
1.2
|
Recurring
EBITDA
|
4,351
|
5.4
|
16,040
|
3.1
|
Recurring EBITDA Margin %
|
38.2%
|
1.0
p.p.
|
36.2%
|
0.4
p.p.
|
Reported Net
Income
|
1,274
|
(14.3)
|
5,001
|
(44.0)
|
|
|
|
|
|
Free Cash
Flow
|
2,663
|
28.4
|
8,235
|
19.0
|
|
|
|
|
|
Total Accesses
(thousand)
|
93,627
|
(1.6)
|
93,627
|
(1.6)
|
Mobile
accesses
|
74,582
|
(1.9)
|
74,582
|
(1.9)
|
Fixed
accesses
|
19,044
|
(13.5)
|
19,044
|
(13.5)
|
Mobile market share of 32.9% in December 2019, the highest since 2006.
Postpaid accesses grew 6.9%, accounting for 57.9% of total
mobile accesses, with a market share of 39.4% in December 2019.
Broadband accesses totaled 6,908 thousand customers in
4Q19 and FTTH accesses grew 30.8% y-o-y, with 145 thousand net
additions in 4Q19. Broadband ARPU increased 14.1%
versus 4Q18, reaching R$
71.7.
Net revenues rose 2.6% y-o-y, reflecting the solid
results of postpaid, handsets and FTTH. In 2019, net revenues grew
1.9% y-o-y. Mobile revenues increased 5.7% y-o-y, driven by
the growth of ARPU, postpaid accesses and handset sales. Mobile
service revenues climbed 2.2% y-o-y. In 2019, mobile revenues
increased 4.8% y-o-y.
Recurring operating costs increased 1.0% y-o-y
mainly due to higher expenses related to handset sales, partially
offset by digitalization and automation initiatives. Excluding the
cost of goods sold, total costs dropped 1.9% y-o-y. In 2019,
recurring costs grew 1.2% y-o-y, well below the inflation of 4.3%
registered in the period.
Recurring EBITDA totaled R$
4,351 million in 4Q19, up 5.4% y-o-y, with an EBITDA margin
of 38.2% (+1.0 p.p. y-o-y). In 2019, recurring EBITDA grew 3.1%
y-o-y, with a margin of 36.2%.
Capex totaled R$ 2,357
million in 4Q19, focused on FTTH and expansion of 4G/4.5G
coverage and capacity. In 2019, Capex reached R$ 8,844 million, representing 20.0% of our
revenues for the period.
Reported net income fell 14.3% y-o-y in 4Q19, to
R$ 1,274 million. In 2019, reported
net income reached R$ 5,001 million,
down 44.0% y-o-y, due to positive non-recurring effects registered
in 2018. If we exclude these effects, recurring net income
grows 2.5% y-o-y, reaching R$ 5,372
million.
Shareholder remuneration of R$
5,784 million proposed, based on 2019 net income,
representing a payout of 116% over our reported net income
for the period, with a dividend yield of 6.1% for our
preferred shareholders.
Free cash flow grew 28.4% y-o-y, to R$ 2,663 million in 4Q19, driven by EBITDA growth
and lower interest, taxes and other financial expenses, partially
offset by higher investment volume in the period. In 2019, free
cash flow reached R$ 8,235 million,
up 19.0% y-o-y, the highest ever cash generation registered by
Vivo in a single year.
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
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SOURCE Telefônica Brasil S.A.