PR Newswire | Oct 27, 2021 07:02PM EDT

10/27 18:01 CDT

3Q21 Results: Telefnica Brasil S.A. SAO PAULO, Oct. 27, 2021

SAO PAULO, Oct. 27, 2021 /PRNewswire/ -- Telefnica Brasil - (B3: VIVT3; NYSE: VIV), announces its results for 3Q21.

Fixed revenue back to growth and best mobile service revenue annual increase in 6 years, combined with net profit growing 8.5%

R$ million 3Q21 3Q20 % y-o-y 9M21 9M20 % y-o-y

Net Operating Revenues 11,033 10,792 2.2 32,532 31,934 1.9

Core Revenue 9,888 9,337 5.9 28,904 27,202 6.3

Mobile Revenue 7,391 7,163 3.2 21,529 20,852 3.2

Fixed Core Revenue 2,496 2,174 14.8 7,375 6,350 16.1

Non-Core Revenue 1,145 1,455 (21.3) 3,628 4,732 (23.3)

Total Recurring Costs (6,620) (6,470) 2.3 (19,437) (19,078) 1.9

Reported Total Costs (6,203) (6,470) (4.1) (18,457) (19,002) (2.9)

Recurring EBITDA 4,414 4,322 2.1 13,095 12,856 1.9

Recurring EBITDA Margin % 40.0% 40.0% (0.0) p.p. 40.3% 40.3% (0.0) p.p.

Reported EBITDA 4,830 4,322 11.8 14,075 12,932 8.8

Reported EBITDA Margin % 43.8% 40.0% 3.7 p.p. 43.3% 40.5% 2.8 p.p.

Net Income 1,315 1,212 8.5 3,602 3,478 3.6

Capex | Ex- IFRS 16 2,151 1,803 19.3 6,346 6,346 18.4

Free Cash Flow after Lease Payments 2,634 3,540 (25.6) 6,701 6,701 (20.5)

Total Subscribers (thousand) 97,424 93,718 4.0 97,424 97,424 4.0

Core Subscribers 88,601 82,627 7.2 88,601 88,601 7.2

Non-Core Subscribers 8,823 11,091 (20.4) 8,823 8,823 (20.4)

The customer base totaled 97.4 million accesses. The mobile customer base reached 82.3 million accesses, the highest volume since 2Q15. Postpaid accesses came to 48.1 million, an increase of +4.1 million in the last 12 months.

Mobile market share reached 33.0% in July 2021, reaffirming Vivo's leadership in the mobile business. Vivo's market share in postpaidreached 36.8% in July 2021.

Fiber-to-the-home customers totaled 4.4 million (+39.2% y-o-y), posting strong net additions in 3Q21. Vivo Fibra is available in 309 cities (+65 cities y-o-y) with 18.3 million HPs (+3.8 million HPs in 12 months). FTTH Revenues reached R$1,137 million (+37.2% y-o-y).

Net revenuesgrew +2.2% y-o-y due to acceleration in mobile service revenue and return of growth in fixed revenue, driven by FTTH and Corporate Data and ICT.Mobile service revenues registered the highest growth in the last 6 years, with an expansion of +5.7% y-o-y. Total fixed revenue grows again after 4 years,with the highest relevance of the core fixed businesses.

Recurring Total Costs went +2.3% up in 3Q21, as cost base is evolving with a higher revenue from core businesses. Nevertheless, growth in costs remained substantially below inflation due to the continuous digitalization efforts.

Recurring EBITDAtotaled R$4,414 million (+2.1% y-o-y) in 3Q21, with a recurring EBITDA margin of 40.0%.

Net income equaled R$1,315 million, (+8.5% y-o-y) with improved operating performance. Interest on Capital declared until September-21 reached R$1.9 billion, representing a dividend yield of 7.4% in the last 12 months. The company also accelerated its Share Buyback Program with 5.6 million shares repurchased during 3Q21.

Free Cash Flow after Leasing payments totaled R$2,634 million in 3Q21, due to the Company's efficient financial management.

Vivo and Anima (B3: ANIM3) are negotiating a 50/50 joint venture to create a business platform focused on lifelong learning and employability.

TELEF0NICA BRASIL - Investor RelationsChristian GebaraDavid MelconJoao Pedro CarneiroGabriel Menezes+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 S.A.