1Q23 Results: Telefônica Brasil S.A.

SÃO PAULO, May 9, 2023 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3; NYSE: VIV), announces its results for 1Q23. 

Solid operating performance leads to the highest revenue growth in over a decade, as core services accelerate

Net Revenue had its largest yearly growth rate of +12.1% in over a decade. This growth was led by Mobile Service Revenue, which increased 15.9% YoY. Postpaid Revenue and Prepaid Revenue grew on an annual comparison +15.4% and +18.0% respectively. These increases were driven by the expansion of the customer base, annual price readjustments and churn in historic low levels. Customer base totaled 112 million accesses (12.3% YoY) of which 98 million were mobile accesses (+14.9% YoY).

This quarter we highlight our fiber and postpaid convergent offer, Vivo Total, that registered a monthly churn rate of 0.39%, in comparison with our standalone offers, this rate is much lower. In addition, our Digital B2B Revenues now represent 6.4% of all revenues, expanding at an ever-growing rate. In the B2C segment, we achieved the mark of more than 2.2 million video and music OTTs subscriptions increasing revenues in +53% YoY.

Net Fixed Revenue grew 3.5% YoY, due to the higher representativeness of Core Fixed Revenue (+13.0% YoY), which now corresponds to 78.3% (+6.6 p.p. YoY) of net fixed revenue. Fixed revenues grew the most since 3Q15, resulting from the strategic decision to focus on the fiber business and B2B digital services expansion. FTTH Revenue grew +17.7% YoY as our FTTH network reached 95 new cities YoY, now present in 436 Brazilian cities, with 24.4 million homes passed and 5.7 million homes connected.

Due to strong mobile performance, EBITDA demonstrated an increase of +9.6% YoY, while Total Costs expanded +13.7% YoY, being impacted by changes in revenue mix and inflation. Operating Cash Flow grew 23.7% YoY, highlighting the lower Capex (-10.3% YoY) in the quarter.

Net income grew 11.3% compared to the same period of last year, reaching R$835 million in 1Q23. Shareholder remuneration declared up to April 2023 hit R$1,295 million, of which R$827 million were in dividends, R$396 million in interest on capital and R$72 million in share buybacks.

CONTACT:  David Melcon Sanchez-Friera, CFO and Investor Relations Officer, Telephone: +55 11 3430-3687, Email: [email protected]

To download the complete version of the Company's earnings release, please visit our website: https://ri.telefonica.com.br/en

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SOURCE Telefônica Brasil S.A.