2Q13 Results: Telefonica Brasil S.A.

SAO PAULO, July 24, 2013 /PRNewswire/ -- Telefonica Brasil - (Bovespa: VIVT3 [ON = Common Shares] / VIVT4 [PN = Preferred Shares]; NYSE: VIV), announces its consolidated results for the second quarter of 2013 (2Q13). The Company consolidates its leadership in the mobile business in 2Q13 and confirms positive operating and financial trends in the fixed-line business.

R$ million	2Q13	1Q13	2Q12
Net Revenue	8,491.5	8,555.5	8,240.4
Total Operating Costs	(5,916.0)	(5,807.9)	(5,149.0)
EBITDA	2,575.5	2,747.6	3,091.4
EBITDA Margin (%)	30.3%	32.1%	37.5%
Recurrent EBITDA	2,495.9	2,837.4	2,729.8
Recurrent EBITDA Margin %	29.4%	33.2%	33.1%
Net Result	914.2	810.2	1,085.6
Number of accesses (thousand)	91,141	90,859	90,858
Mobile accesses	76,200	75,988	75,720
Fixed accesses	14,941	14,871	15,138

Total accesses reached 91.1 million in the quarter (+0.3% y-o-y), 76.2 million of which was in the mobile business and 14.9 million in the fixed-line business;

Fixed voice accesses recorded a growth of +13 thousand accesses over 1Q13, for the first time since 3Q10;

Growth in fixed broadband services net adds recording 84 thousand in 2Q13, 4 times the amount recorded in 1Q13.

Positive quarterly growth in TV accesses (+4.1% q-o-q), excluding, in both periods, mandatory disconnections in MMDS technology, reversing the quarterly drop since 4Q11;

Consistent leadership in the mobile higher revenue segments, recording growth in postpaid accesses, +20.4% y-o-y, being 27.1% of the accesses base in the postpaid segment;

Mobile ARPU registered growth of 4.1% y-o-y, stimulated by the 23.4% growth in Data ARPU;

Total Net Revenue recorded growth of 3.0% y-o-y in the quarter. In April, 2013 became effective a reduction of MTR (-11.8%) and VC (-8.8%). Excluding the regulatory effect the annual growth would be 4.6% in the quarter;

Fixed Service Revenue recorded substantial improvement in the annual variation recording -5.2% y-o-y in 2Q13 (-4.1% excluding the effect of the reduction in the VC);

Mobile Services Revenue recorded variation of 5.2% compared to 2Q12. Excluding the effect of the MTR reduction in April/13, such variation would be 7.1% y-o-y;

Year-to-date Recurrent EBITDA recorded R$ 5.3 billion with EBITDA Margin of 31.3% (-2.0 p.p. y-o-y) in the semester;

TELEFONICA BRASIL – Investor Relations
Paulo Cesar Teixeira
Cristiane Barretto Sales
Luis Carlos Plaster
Maria Tereza Pelicano David

Av. Luis Carlos Berrini, 1376 - 28º Andar – Cidade Moncoes – SP – 04571-936
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/ir

SOURCE Telefonica Brasil S.A.

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