2Q11 Results: Telecomunicacoes de Sao Paulo S.A. - Telesp

SAO PAULO, July 27, 2011 /PRNewswire/ -- Telesp - (Bovespa: TLPP3 [ON = Common Shares] / TLPP4 [PN = Preferred Shares]; NYSE: VIV), announces its consolidated results for the second quarter 2011 (2Q11). With an excellent balance between growth and profitability in its fixed and mobile operations in Brazil, and an ongoing focus on quality, Telefonica records net income of R$ 1.1 billion in the second quarter.

R$ million		2Q11	1Q11	2Q10
Net Revenue		8,231.3	7,975.8	7,712.8
Total Operating Costs		(5,168.6)	(5,135.9)	(4,906.1)
EBITDA		3,062.7	2,839.9	2,806.7
EBITDA Margin (%)		37.2%	35.6%	36.4%
Net Result		1,149.4	1,128.5	884.4
Number of accesses (thousand)		79,331	77,124	70,679
Mobile accesses		64,049	62,061	55,977
Fixed accesses		15,282	15,062	14,702

Total accesses reached 79.3 million (+12.2% yoy), 64.0 million of which in the mobile segment (+14.4% yoy) and 15.3 million in the fixed-line segment (+3.9% yoy);

Net additions in the mobile post-paid segment came to 46.3%;

Net additions in fixed broadband totaled 93 thousand, 53% up in the quarter;

Total Mobile ARPU increased in the annual comparison, reversing the historical decline - Outgoing ARPU moved up for the third consecutive quarter, also in the annual comparison;

Net revenues totaled R$8,231.3 million in the quarter, 6.7% up yoy.

Accelerated net service revenue growth in both mobile (+15.1% yoy) and fixed-line (+8.1% yoy), excluding intercompanies eliminations;

Mobile Data and VAS revenues accounted for 23.5% of mobile service revenues.

EBITDA increased by 9.1% over 2Q10, while the EBITDA Margin reached 37.2%. The adjusted EBITDA Margin recorded yoy growth of 1.9 percentage points;

Net income stood at R$1,149.4 million in the 2Q11, 30.0% up yoy.

TELESP – Investor Relations

Gilmar Roberto Camurra

Cristiane Barretto Sales

Carlos Raimar Schoeninger

Luis Carlos Plaster

Maria Tereza Ali Pelicano David

Chucri Zaidam, 860 – Morumbi – SP – 04583-110

Phone: [phone]

Email: [e-mail] and [e-mail]

To download the complete version of the Company's earnings release, please visit our website: http://www.telefonica.com.br/investidores

SOURCE Telecomunicacoes de Sao Paulo S.A.

Copyright 2011 PR Newswire