4Q11 Results: Telefonica Brasil S.A.

SAO PAULO, Feb. 16, 2012 /PRNewswire/ -- Telefonica Brasil -  (Bovespa: VIVT3 [ON = Common Shares] / VIVT4 [PN = Preferred Shares]; NYSE: VIV), announces its consolidated results for the fourth quarter 2011 (4Q11). Combining growth and profitability, TELEFONICA BRASIL records EBITDA of R$ 12.0 billion and net profits of R$ 5.1 billion in the year. COMBIN GROWTH AND PROFITABILITY, TELEFONICA BRASIL RECITDA OF R$ 12.0 BILLION AND NET PROFIT OF R$ 5.1 BILLION IN THE YEAR.

R$ million		4Q11	3Q11	4Q10	2011	2010
Net Revenue		8,600.1	8,293.1	8,233.3	33,171.5	31,470.5
Total Operating Costs		(5,292.5)	(5,468.6)	(5,125.8)	(21,136.8)	(20,159.8)
EBITDA		3,307.6	2,824.5	3,107.6	12,034.7	11,310.7
EBITDA Margin (%)		38.5%	34.1%	37.7%	36.3%	35.9%
Net Result		1,462.3	1,332.2	1,482.2	5,072.4	4,292.7
Number of accesses (thousand)		86,864	82,372	75,393	86,864	75,393
Mobile accesses		71,554	67,038	60,293	71,554	60,293
Fixed accesses		15,311	15,334	15,100	15,311	15,100

Total accesses reached 86.9 million in the quarter (+15.2% y-o-y), 71.6 million of which in the mobile segment (+18,7% y-o-y) and 15.3 million in the fixed-line segment (+1.4% y-o-y);

Growth of 51.1% q-o-q and 75.1% y-o-y in net additions in the mobile segment, which totaled 4.5 million net additions in the quarter. In 2011, growth of 31.7% in the y-o-y in net additions, coming to a total of 11.3 million new accesses;

Mobile segment market share had a slight growth, maintaining the leadership with 29.5% (+0.1 p.p. q-o-q). Increased leadership in the data segment, with respective market share of 43.4% (+3.3 p.p. y-o-y). In the postpaid segment we recorded market share of 36.6% (+1.3 p.p. y-o-y);

Mobile broadband segment accounted for almost one half of the new market additions (47.6%) and accesses with data plans or packages grew by 127% y-o-y, reaching 7.5 million accesses in 2011. Fixed broadband accesses moved up by 9.5% y-o-y to 3.6 million accesses;

Net service revenues totaled R$ 8,437.1 million in 4Q11 represents annual growth of 6.3%. In 2011, the Net Services Revenue recorded R$ 32,217.3 million, 6.3% up in relation to 2010;

Mobile Data and VAS revenues has accelerated its annual growth, recording a positive variation of 10.6% in 4Q11 and 40.8% in y-o-y;

The EBITDA recorded growth of 17.1% in q-o-q and of 6.4% in y-o-y, reaching R$ 12,034.7 million in the year, a growth of 6.4% over 2010;

The EBITDA Margin stood at 38.5% in the quarter (+4.4 p.p. q-o-q) and 36.3% in the year (+0.3 p.p. y-o-y); 

Operating cash generation in the year totaled R$ 8,980.2 million;

Net income came to R$ 1,462.3 million in the quarter, a growth of 9.8% q-o-q. In the year, the combined net income recorded R$ 5,072.4 million, with a growth of 18.2% over 2010.

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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