3Q13 Results: Telefonica Brasil S.A.

SAO PAULO, Nov. 7, 2013 /PRNewswire/ -- Telefonica Brasil - (Bovespa: VIVT3 [ON = Common Shares] / VIVT4 [PN = Preferred Shares]; NYSE: VIV), announces its consolidated results for the third quarter of 2013 (3Q13). The Company recorded a solid operating performance in all fixed business and accelerated its growth in the postpaid and mobile data segments.

R$ million	3Q13	2Q13	3Q12
Net Revenue	8,618.2	8,491.5	8,460.6
Total Operating Costs	-6,236.9	-5,916.0	-5,548.6
EBITDA	2,381.3	2,575.5	2,912.0
EBITDA Margin (%)	27.6%	30.3%	34.4%
Recurrent EBITDA	2,381.3	2,495.9	2,871.6
Recurrent EBITDA Margin %	27.6%	29.4%	33.9%
Net Result	760.2	914.2	935.8
Number of accesses (thousand)	91,712	91,141	91,892
Mobile accesses	76,614	76,200	76,806
Fixed accesses	15,098	14,941	15,087

Total accesses reached 91.7 million in the quarter (+0.6% q-o-q). Fixed voice increased +60 thousand accesses in 3Q13 over 2Q13, while fixed broadband services records 46 thousand net additions in 3Q13, specially on FTTH. TV accesses increased in +9.4% q-o-q, with net additions of 51 thousand accesses, leveraged by the additions in DTH and IPTV.

On the mobile business, we increased growth in postpaid accesses, (+23.3% y-o-y in 3Q13) and 1,453 thousand net additions in the quarter, a historic record. Mobile data accesses recorded growth of 88.1% y-o-y. Mobile Data ARPU registered growth of 24.0% y-o-y, +0.6 p.p. over the growth recorded in the previous quarter.

Total Net Revenue recorded growth of 1.9% y-o-y. Total Services Revenue increased 1.5% y-o-y or 3.1% y-o-y by excluding the regulatory effect of the reduction in the MTR and VC.

Mobile Services Revenue recorded an annual variation of 7.1% or 9.1% y-o-y by excluding the effect of the MTR reduction in April/13.

Data and SVA Revenues already accounts for 32.4% of the Mobile Services Revenue, leveraged by the growth of mobile internet revenues.

Year-to-date Recurrent EBITDA recorded R$ 7.7 billion with EBITDA Margin of 30.1% (-3.5 p.p. y-o-y) in the period.

Investments of R$ 1.9 billion in the quarter, of which R$ 451 million referring to license upgrade, equivalent to 16.4% of the Net Revenue, focusing on quality, 4G coverage and fiber.

TELEFONICA BRASIL – Investor Relations
Paulo Cesar Teixeira
Alberto Horcajo Aguirre
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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