SÃO PAULO, Oct. 26, 2022 /PRNewswire/ -- Telefônica Brasil - ((B3: VIVT3, NYSE:VIV), announces its results for 3Q22.
Solid performances on revenues lead to better margins and higher Net Income
R$ million | 3Q22 | 3Q21 | % y-o-y | 9M22 | 9M21 | % y-o-y |
Net Operating Revenues | 12,199 | 11,033 | 10.6 | 35,382 | 32,532 | 8.8 |
Core Revenue | 11,256 | 9,888 | 13.8 | 32,380 | 28,904 | 12.0 |
Mobile Revenue | 8,480 | 7,391 | 14.7 | 24,172 | 21,529 | 12.3 |
Fixed Core Revenue | 2,776 | 2,496 | 11.2 | 8,209 | 7,375 | 11.3 |
Non-Core Revenue | 943 | 1,145 | (17.7) | 3,002 | 3,628 | (17.3) |
Recurring Total Costs | (7,242) | (6,620) | 9.4 | (21,335) | (19,437) | 9.8 |
Reported Total Costs | (7,242) | (6,203) | 16.7 | (21,335) | (18,457) | 15.6 |
Recurring EBITDA | 4,957 | 4,414 | 12.3 | 14,047 | 13,095 | 7.3 |
Recurring EBITDA Margin | 40.6 % | 40.0 % | 0.6 p.p. | 39.7 % | 40.3 % | (0.6) p.p. |
Reported EBITDA | 4,957 | 4,830 | 2.6 | 14,047 | 14,075 | (0.2) |
Reported EBITDA Margin % | 40.6 % | 43.8 % | (3.1) p.p. | 39.7 % | 43.3 % | (3.6) p.p. |
Net Income | 1,436 | 1,315 | 9.3 | 2,932 | 3,602 | (18.6) |
Capex | Ex- IFRS 16 | 2,586 | 2,151 | 20.2 | 7,041 | 6,346 | 11.0 |
Operating Cash Flow (OpCF) | 2,371 | 2,262 | 4.8 | 7,006 | 6,749 | 3.8 |
OpCF/Net Revenue Margin | 19.4 % | 20.5 % | 0.1 | 19.8 % | 20.7 % | (4.6) |
Free Cash Flow after Lease Payments | 1,839 | 2,634 | (30.2) | 6,473 | 6,701 | (3.4) |
Total Subscribers (thousand) | 111,688 | 97,424 | 14.6 | 111,688 | 97,424 | 14.6 |
Core Subscribers | 104,070 | 88,601 | 17.5 | 104,070 | 88,601 | 17.5 |
Non-Core Subscribers | 7,618 | 8,823 | (13.7) | 7,618 | 8,823 | (13.7) |
Net Operating Revenue grew 10.6% YoY led by Mobile Service Revenue which increased 13.8% on a yearly comparison, and by Handset Revenue, which in its turn, grew a robust +25.9% YoY due to higher demand for 5G compatible smartphones. Net Revenues in the period were not impacted by the time difference between the disclosure of the new ICMS rates and the reduction of prices on invoices.
Despite Vivo disconnecting 3 million mobile accesses, considered inactive by Vivo's criteria regarding the acquisition of Oi Mobile, Postpaid Revenue and Prepaid Revenue grew, on an annual comparison, +12.0% and +21.5% respectively. These increases were driven by the expansion of the customer base and annual price adjustments in postpaid.
Net Fixed Revenue rose +2.1% YoY due to a higher representativeness of Core Fixed Revenue, which is corresponding to 74.6% (+6.1 p.p.) of Net Fixed Revenue. FTTH Revenue grew +20.1% YoY as our FTTH network reached 71 new cities YoY, now present in 380 Brazilian cities, with 22.3 million homes passed and 5.3 million homes connected.
When not considering Depreciation and Amortization, Recurring Total Costs expanded +9.4% YoY, as Cost of Services reached 1.4 billion with higher revenues from the sale of licenses and services to companies, and with Costs of Products Sold growing +39.7% YoY, given a solid performance in the sale of handsets, accessories and IT equipment.
Recurring EBITDA totaled R$4,957 million (+12.3% YoY) in 3Q22, with a Recurring EBITDA margin of 40.6%.
In 3Q22, we bought back R$ 144 million in shares with the new Share Buyback Program that will last until Feb-23. In the last 12 months, the Company registered 113% in dividend payout, and an 9.2% dividend yield, considering the share buyback program.
Net Income totaled R$1,436 million in 3Q22, rising +9.3% YoY, due to higher revenues and the improvement in the financial result.
TELEFÔNICA BRASIL – Investor Relations
Christian Gebara
David Melcon
João Pedro Carneiro
Gabriel Figueiredo Menezes
[email protected]
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 S.A.