SAO PAULO, May 11, 2021 /PRNewswire/ -- Telefônica 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 revenues resume growth (+0.2% y-o-y), underlining the successful transformation of revenue profile. Core businesses represented 88% of total revenues with increasing relevance. Core fixed revenues 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.

Recurring EBITDA totaled 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 Pay and Vida V, and partnerships with Dotz, CDF and Itaucard, strengthen Vivo's positioning as a digital services hub.

TELEFÔNICA BRASIL – Investor Relations

Christian Gebara

David Melcon

Luis Plaster

João 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 Telefônica Brasil

1Q21 Results: Telefônica Brasil S.A.