PR Newswire | May 11, 2021 07:11PM EDT

05/11 18:10 CDT

1Q21 Results: Telefnica Brasil S.A. SAO PAULO, May 11, 2021

SAO PAULO, May 11, 2021 /PRNewswire/ -- Telefnica Brasil - (B3: VIVT3 [Common Shares]; NYSE: VIV), announces its results for 1Q21.

Net revenue shows an inflection point and resumes growth in the quarter, driven by record revenues in fiber

R$ million 1Q21 % y-o-y

Net Operating Revenues 10,849 0.2

Core Revenue 9,563 4.7

Mobile Revenue 7,147 1.1

Fixed Core Revenue 2,416 17.2

Non-Core Revenue 1,286 (24.1)

Total Costs (6,394) 1.2

Recurring Total Costs (6,394) 0.0

Recurring EBITDA 4,455 0.5

Recurring EBITDA Margin 41.1% 0.1 p.p.

Reported EBITDA 4,455 (1.1)

Reported EBITDA Margin % 41.1% (0.6) p.p.

Net Income 942 (18.3)

Capex | Ex- IFRS 16 1,943 18.0

Free Cash Flow after Lease Payments 2,199 3.7

Total Subscribers (thousand) 95,809 2.9

Core Subscribers 85,816 6.6

Non-Core Subscribers 9,993 (20.4)

Mobile market share reached 33.1% in March 2021, maintaining undisputed leadership in the mobile business. Postpaid accesses grew 5.2% y-o-y and accounted for 57.7% of total mobile accesses, with a market share of 37.0% in March 2021.

Fiber-to-the-home broadband customers totaled 3,746 thousand (+41.2% y-o-y), posting accelerated additions of high-quality customers in 1Q21. FTTH Revenues increased 61.2% versus 1Q20, reaching the record of R$1,010 million.

Net revenuesresume growth (+0.2% y-o-y), underlining the successful transformation of revenue profile.Core businesses represented 88% of total revenueswith increasing relevance.Core fixedrevenues continue to grow significantly (+17.2% y-o-y) while mobile revenues are showing solid recovery (+1.1% y-o-y).

Total Costs remained flat in 1Q21, despite the accelerated inflation, as Company's efficient cost management compensated higher cost of goods and services sold.

RecurringEBITDAtotaled R$4,455 million (+0.5% y-o-y) in 1Q21, with a recurring EBITDA margin of 41.1%.

Investments of R$1,943 million in 1Q21, focused on the expansion of the FTTH network and the capacity of the 4G and 4.5G networks.

Shareholder remuneration declared until April-21 reaches R$700 million, representing a dividend yield of 7.9%.

Free Cash Flow after Leasing payments reached R$2,199 million in 1Q21 (+3.7% y-o-y), reflecting efficient financial management.

Launch of Vivo PayandVida V, and partnerships with Dotz, CDF and Itaucard, strengthen Vivo's positioning as a digital services hub.

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

View original content: http://www.prnewswire.com/news-releases/1q21-results-telefonica-brasil-sa-301289251.html

SOURCE Telefnica Brasil