3Q11 Results: Telefonica Brasil S.A.

SAO PAULO, Nov. 10, 2011 /PRNewswire/ -- Telefonica Brasil - (Bovespa: VIVT3 [ON = Common Shares] / VIVT4 [PN = Preferred Shares]; NYSE: VIV), announces its consolidated results for the third quarter 2011 (3Q11). With an advanced process of operations integration and increase growth in mobile operations, TELEFONICA BRASIL records R$ 3.6 billion in profits in 9M11.

R$ million		3Q11	2Q11	3Q10
Net Revenue		8,261.8	8,231.3	7,908.2
Total Operating Costs		(5,437.3)	(5,168.6)	(5,061.0)
EBITDA		2,824.5	3,062.7	2,847.2
EBITDA Margin (%)		34.2%	37.2%	36.0%
Net Result		1,332.2	1,149.4	1,249.3
Number of accesses (thousand)		82,372	79,331	72,619
Mobile accesses		67,038	64,049	57,714
Fixed accesses		15,334	15,282	14,905

Total accesses reached 82.4 million in the quarter (+13.4% y-o-y), 67.0 million of which in the mobile segment (+16.2% y-o-y) and 15.3 million in the fixed-line segment (+2.9% y-o-y);

Growth of 50.4% q-o-q and 72.1% y-o-y in net additions in the mobile segment, which totaled 3.0 million net additions in the quarter, a new Company record;

Increased leadership in the postpaid and mobile data segments, with respective market shares of 36.8% (+1.5 p.p. y-o-y) and 43.0% (+5.0 p.p. y-o-y);

Acceleration in total mobile ARPU, reaching 3.6% in the annual comparison and 4.4% in the quarter;

Mobile broadband accesses grew by 44.8% y-o-y, with a 49.2% market share of net additions, while fixed broadband accesses moved up by 13.2% y-o-y to 3.6 million accesses;

Net service revenues totaled R$ 8,036.4 million in 3Q11, 5.6% up y-o-y;  

Accelerated net revenue growth from mobile services (+19.3% y-o-y) and maintenance of net revenue growth from fixed-line services (+6.0% y-o-y), excluding intercompany eliminations;

Mobile Data and VAS revenues has accelerated its annual growth, reaching 43.2% in 3Q11;

Third-quarter EBITDA decreased by -0.8% y-o-y mainly due to the Company's bet in the long term growth through a strong commercial activity during the quarter;

The EBITDA Margin stood at 35.7% year-to-date (+0.2 p.p. y-o-y), and 34.2% in the quarter;

Net income came to R$ 3,610.1 million in the first nine months of 2011, 28.5% up y-o-y.

TELEFONICA BRASIL – 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]

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

SOURCE Telefonica Brasil S.A.

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