4Q13 Results: Telefonica Brasil S.A.

SAO PAULO, Feb. 26, 2014 /PRNewswire/ -- Telefonica Brasil - (Bovespa: VIVT3 [ON = Common Shares] / VIVT4 [PN = Preferred Shares]; NYSE: VIV), announces its consolidated results for the fourth quarter and for the year of 2013. With strategy focused on value generation and solid operating evolution, Telefonica Brasil recorded in 2013 Recurrent EBITDA of R$10.5 billion with 30.4% Margin.

R$ million	4Q13	3Q13	2013	2012
Net Revenue	9,056.7	8,618.2	34,721.9	33,919.7
Total Operating Costs	-6,185.5	-6,236.9	-24,146.3	-21,217.0
EBITDA	2,871.2	2,381.3	10,575.6	12,702.7
EBITDA Margin (%)	31.7%	27.6%	30.5%	37.4%
Recurrent EBITDA	2,778.3	2,381.3	10,492.9	11,560.2
Recurrent EBITDA Margin %	31.2%	27.6%	30.4%	34.1%
Net Result	1,231.3	760.2	3,715.9	4,452.2
Number of accesses (thousand)	92,557	91,712	92,557	91,116
Mobile accesses	77,245	76,614	77,245	76,137
Fixed accesses	15,312	15,098	15,312	14,978

Total accesses reached 92.6 million in the quarter (+0.9% q-o-q). Fixed voice accesses recorded quarterly growth of 123 thousand accesses in 4Q13, while fixed broadband net gain recorded 39 thousand accesses in 4Q13, growing specially in FTTH. TV accesses increased +8.9% q-o-q, driven by the additions in DTH and IPTV.

Acceleration in the postpaid accesses and new record of net additions, 1,555 thousand in the quarter. Mobile ARPU recorded annual growth of 4.5% in 2013, stimulated by the growth in Data ARPU in the same period.

Total Net Revenue increased +5.1% q-o-q and +2.4% y-o-y in 2013.

Mobile Services Revenue recorded variation of +5.3% y-o-y in the quarter and of +6.1% in the year. Excluding the effect of the MTR reduction, the variation in the quarter would be of +7.1% y-o-y in relation to 4Q12.

Data and VAS Revenue evolution was leveraged by the growth of the mobile internet revenue, which increased by 35.1% y-o-y in 4Q13.

Recurrent EBITDA in 4Q13 recorded R$ 2.8 billion with EBITDA Margin of 31.2% (+3.6 p.p. q-o-q). In 2013 the Recurrent EBITDA Margin was 30.4% (-3.7 p.p. y-o-y).

Investments of R$ 6.0 billion in 2013 with focus on quality assurance, 4G coverage and fiber.

IOC and Dividends, declared over 2013 income recorded R$ 3.5 billion, a payout of 95% in the period.

TELEFONICA BRASIL – Investor Relations
Paulo Cesar Teixeira
Alberto Horcajo Aguirre
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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