PR Newswire | Jul 29, 2020 06:49AM EDT

07/29 05:48 CDT

2Q20 Results: Telefnica Brasil S.A. SAO PAULO, July 29, 2020

SAO PAULO, July 29, 2020 /PRNewswire/ -- Telefnica Brasil - (B3: VIVT3 [Common Shares] / VIVT4 [Preferred Shares]; NYSE: VIV), announces its results for 2Q20.

Investments focused on the future technologies maintaining solid cash generation in the quarter and maximizing shareholder profitability.

R$ million 2Q20 % y-o-y 6M20 % y-o-y

Net Operating Revenues 10,317 (5.1) 21,142 (3.2)

Net Mobile Revenues 6,618 (5.1) 13,688 (2.6)

Net Handset Revenues 373 (40.9) 954 (22.4)

Net Fixed Revenues 3,700 (5.1) 7,454 (4.3)

Operating Costs (6,214) (5.9) (12,532) (5.2)

Recurring Operating Costs (6,214) (5.9) (12,608) (4.6)

EBITDA 4,103 (3.8) 8,610 (0.2)

EBITDA Margin 39.8% 0.5 p.p. 40.7% 1.2 p.p.

Recurring EBITDA 4,103 (3.8) 8,534 (1.1)

Recurring EBITDA Margin % 39.8% 0.5 p.p. 40.4% 0.9 p.p.

Net Income 1,113 (21.6) 2,266 (17.9)

Free Cash Flow after Lease Payments 2,772 27.3 5,362 62.6

Total Subscribers (thousand) 92,012 (2.5) 92,012 (2.5)

Mobile subscribers 74,408 0.9 74,408 0.9

Fixed subscribers 17,603 (14.6) 17,603 (14.6)

Broadband accessesreached 6,554 thousand customers in 2Q20 and FTTH had record-breaking 210 thousand net additions, making the fiber subscriber base grow 31.9% y-o-y. Broadband ARPU increased 17.6% versus 2Q19, reaching R$ 74.5.

Mobile market share of 33.0% in May 2020, 8.6 p.p. more than the second player. Postpaid accesses grew 3.4%, accounting for 57.9% of total mobile accesses, with a market share of 38.9% in May 2020, up 14.2% over 2Q18.

FTTH and IPTV revenues continue to grow significantly (+47.6% y-o-y and +22.3% y-o-y, respectively) while the trend of mobile revenue growth was interrupted by lower commercial activity caused by the pandemic.

Operating costs decreased 5.9% y-o-y mainly due to lower commercial activity and lower commercial expenses due to digitalization and automation initiatives.

EBITDA totaled R$ 4,103 million in 2Q20, down 3.8% y-o-y, with an EBITDA margin of 39.8% (+0.5 p.p. y-o-y).

Capex totaled R$ 1,909 million in 2Q20, focused on the expansion of the FTTH network and increased quality and capacity of our 4G and 4.5G networks.

Net incomestood at R$ 1,113 million in 2Q20 with profit distribution based on the 2Q20 reaching R$900 million.

Free cash flow after leasinggrew 62.6% y-o-y, to R$ 5,362 million in 6M20.

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 Telefnica Brasil