PR Newswire | Jul 27, 2021 06:40PM EDT

07/27 17:40 CDT

2Q21 Results: Telefnica Brasil S.A. SAO PAULO, July 27, 2021

SAO PAULO, July 27, 2021 /PRNewswire/ -- Telefnica Brasil - (B3: VIVT3; NYSE: VIV), announces its results for 2Q21.

Revenue acceleration driven by positive evolution of mobile and fiber accesses, combined with net profit growing 20.9%

R$ million 2Q21 % y-o-y

Net Operating Revenues 10,649 3.2

Core Revenue 9,453 8.2

Mobile Revenue 6,990 5.6

Fixed Core Revenue 2,462 16.4

Non-Core Revenue 1,197 (24.4)

Total Costs (6,423) 3.4

Recurring Total Costs (5,860) (5.7)

Recurring EBITDA 4,226 3.0

Recurring EBITDA Margin 39.7% (0.1) p.p.

Reported EBITDA 4,789 16.7

Reported EBITDA Margin % 45.0% 5.2 p.p.

Net Income 1,345 20.9

Capex | Ex- IFRS 16 2,251 17.9

Free Cash Flow after Lease Payments 1,868 (32.6)

Total Subscribers (thousand) 96,721 5.1

Core Subscribers 87,197 8.7

Non-Core Subscribers 9,524 (19.0)

Mobile market share reached 33.0% in April 2021[1], reaffirming Vivo's leadership in the mobile business. Postpaid accesses grew 8.7% y-o-y and accounted for 58.2% of total mobile accesses, with a market share of 36.9% in April 2021?.

Fiber-to-the-home broadband customers totaled 4 million (+41.3% y-o-y), posting strong net additions in 2Q21. FTTH Revenues increased 49.7% versus 2Q20, reaching R$1,062 million.

Net revenuesgrew +3.2% y-o-y due to a portfolio of unmatched quality and service.Core businesses continues to increase its relevance, as it already represents 89% of total revenues.Core fixedrevenues continue to grow significantly (+14.3% y-o-y) while mobile revenues are showing solid recovery once again (+5.6% y-o-y).

Total Costs went +3.4% up in 2Q21, as cost base is evolving with the sale of handsets and digital services, offsetting this quarter cost reductions based on digitalization and simplification initiatives.

Recurring EBITDAtotaled R$4,226 million (+3.0% y-o-y) in 2Q21, with a recurring EBITDA margin of 39.7%.

Investments of R$2,251 million in 2Q21, focused on the expansion of the FTTH network and the capacity of the 4G and 4.5G networks.

Net income equaled R$1,345 million, (+20.9% y-o-y) with improved operating performance. Shareholder remuneration declared until June-21 reached R$1,330 million, representing a dividend yield of 7.7%.

Free Cash Flow after Leasing payments totaled R$1,868 million in 2Q21, reflecting the ongoing, efficient Company's financial management.

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

1 Most recent market share data published by Anatel with information of all large carriers.

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SOURCE Telefnica Brasil S.A.