PR Newswire | Feb 23, 2021 07:15PM EST

02/23 18:14 CST

4Q20 Results: Telefnica Brasil S.A. SAO PAULO, Feb. 23, 2021

SAO PAULO, Feb. 23, 2021 /PRNewswire/ -- Telefnica 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. FTTHrevenues 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.

RecurringEBITDAtotaled 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 generationas a result of Capex optimization and lower operating, financial and tax payments.

TELEF0NICA BRASIL - Investor RelationsChristian GebaraDavid MelconLuis PlasterJoao 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 Telefnica Brasil