Telefônica Brasil announces its results for 1Q24

SÃO PAULO, May 7, 2024 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3; NYSE: VIV), announces its results for 1Q24:

1Q24 Results: Telefônica Brasil S.A.

Strong operating performance leading to above-inflation growth in revenues, EBITDA and net income

R$ million	1Q24	1Q23	% Y-o-Y
Net Operating Revenue	13,546	12,721	6.5
Mobile Services	8,702	7,965	9.3
FTTH	1,717	1,496	14.7
Corporate Data, ICT and Digital Services	1,132	1,093	3.5
Handsets and Electronics	881	854	3.1
Other Revenues¹	1,114	1,312	(15.1)
Total Costs	(8,269)	(7,778)	6.3
EBITDA	5,277	4,942	6.8
EBITDA Margin	39.0 %	38.9 %	0.1 p.p
EBITDA After Leases (AL)	4,047	3,784	7.0
EBITDA AL Margin	29.9 %	29.7 %	0.1 p.p
Net Income attributed to TelefônicaBrasil	896	835	7.3
Earnings per Share (EPS)	0.54	0.50	7.9
CAPEXex-IFRS 16	1,874	1,686	11.2
Operating Cash Flow (OpCF)	3,403	3,256	4.5
OpCF Margin	25.1 %	25.6 %	(0.5) p.p
Operating Cash Flow AL (OpCF AL)	2,173	2,097	3.6
OpCF AL Margin	16.0 %	16.5 %	(0.4) p.p
Free Cash Flow	2,380	3,130	(24.0)
Total Subscribers (Thousand)	113,481	112,280	1.1

1 – Other Revenues includes Voice, xDSL, FTTC and IPTV.

Net revenue continues to grow above inflation (+6.5% YoY), led by the strong performance of Mobile Service Revenue (MSR) (+9.3 YoY), driven by the double-digit growth of Postpaid Revenue (+11.4% YoY). Postpaid's strong performance is related to the increase in customer base (+6.6% YoY), both due to migrations from prepaid as well as through the acquisition of new customers, annual price adjustments, and by maintaining postpaid's (ex-M2M) churn in its lowest historical level, 0.97% per month.

Fixed revenue maintained its positive performance (+1.6% YoY), driven by the increase in FTTH Revenue, which continued to expand strongly (+14.7% YoY) in 1Q24, because of investments in network deployment and fiber customer additions. FTTH network is currently present in 443 cities (+7 cities YoY) with 26.8 million homes passed (+10.0% YoY) and 6.3 million homes connected (+12.3% YoY).

EBITDA totaled R$5,277 million (+6.8% YoY), with a margin of 39.0% (+0.1 p.p. YoY), due to the strong service revenue performance.

Operating Cash Flow totaled R$3,403 million (+4.5% YoY), with a margin of 25.1% (-0.5 p.p. YoY) over net revenue. In 1Q24, Capex ex-IFRS16 totaled R$1,874 million (+11.2% YoY) or 13.8% of revenues (+0.6 p.p. YoY), directed towards strengthening our mobile network.

Net income attributed to Telefônica Brasil reached R$896 million in 1Q24 (+7.3% YoY). Shareholder remuneration paid up to April reached R$2,190 million, related to previous interest on capital deliberations. Additionally, R$1,500 million from the resources resulting from the capital reduction will be paid on July 10^th, 2024, while R$53 million were invested in share buybacks. For the years 2024 to 2026, the Company has committed to distribute an amount equal to or above 100% of net income for each fiscal year.

To download the complete version of the Company's earnings release, please visit our website: https://ri.telefonica.com.br/en

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SOURCE Telefônica Brasil S.A.

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