VIV), announces its results for 1Q24:
1Q24 Results: Telefônica Brasil S.A.
Strong operating performance leading to above-inflation growth in revenues, EBITDA and net income
R$ million | 1Q24 | 1Q23 | % Y-o-Y |
Net Operating Revenue | 13,546 | 12,721 | 6.5 |
Mobile Services | 8,702 | 7,965 | 9.3 |
FTTH | 1,717 | 1,496 | 14.7 |
Corporate Data, ICT and Digital Services | 1,132 | 1,093 | 3.5 |
Handsets and Electronics | 881 | 854 | 3.1 |
Other Revenues¹ | 1,114 | 1,312 | (15.1) |
Total Costs | (8,269) | (7,778) | 6.3 |
EBITDA | 5,277 | 4,942 | 6.8 |
EBITDA Margin | 39.0 % | 38.9 % | 0.1 p.p |
EBITDA After Leases (AL) | 4,047 | 3,784 | 7.0 |
EBITDA AL Margin | 29.9 % | 29.7 % | 0.1 p.p |
Net Income attributed to TelefônicaBrasil | 896 | 835 | 7.3 |
Earnings per Share (EPS) | 0.54 | 0.50 | 7.9 |
CAPEXex-IFRS 16 | 1,874 | 1,686 | 11.2 |
Operating Cash Flow (OpCF) | 3,403 | 3,256 | 4.5 |
OpCF Margin | 25.1 % | 25.6 % | (0.5) p.p |
Operating Cash Flow AL (OpCF AL) | 2,173 | 2,097 | 3.6 |
OpCF AL Margin | 16.0 % | 16.5 % | (0.4) p.p |
Free Cash Flow | 2,380 | 3,130 | (24.0) |
Total Subscribers (Thousand) | 113,481 | 112,280 | 1.1 |
1 - Other Revenues includes Voice, xDSL, FTTC and IPTV.
Net revenue continues to grow above inflation (+6.5% YoY), led by the strong performance of Mobile Service Revenue (MSR) (+9.3 YoY), driven by the double-digit growth of Postpaid Revenue (+11.4% YoY). Postpaid's strong performance is related to the increase in customer base (+6.6% YoY), both due to migrations from prepaid as well as through the acquisition of new customers, annual price adjustments, and by maintaining postpaid's (ex-M2M) churn in its lowest historical level, 0.97% per month.
Fixed revenue maintained its positive performance (+1.6% YoY), driven by the increase in FTTH Revenue, which continued to expand strongly (+14.7% YoY) in 1Q24, because of investments in network deployment and fiber customer additions. FTTH network is currently present in 443 cities (+7 cities YoY) with 26.8 million homes passed (+10.0% YoY) and 6.3 million homes connected (+12.3% YoY).
EBITDA totaled R$5,277 million (+6.8% YoY), with a margin of 39.0% (+0.1 p.p. YoY), due to the strong service revenue performance.
Operating Cash Flow totaled R$3,403 million (+4.5% YoY), with a margin of 25.1% (-0.5 p.p. YoY) over net revenue. In 1Q24, Capex ex-IFRS16 totaled R$1,874 million (+11.2% YoY) or 13.8% of revenues (+0.6 p.p. YoY), directed towards strengthening our mobile network.
Net income attributed to Telefônica Brasil reached R$896 million in 1Q24 (+7.3% YoY). Shareholder remuneration paid up to April reached R$2,190 million, related to previous interest on capital deliberations. Additionally, R$1,500 million from the resources resulting from the capital reduction will be paid on July 10 th, 2024, while R$53 million were invested in share buybacks. For the years 2024 to 2026, the Company has committed to distribute an amount equal to or above 100% of net income for each fiscal year.
To download the complete version of the Company's earnings release, please visit our website: https://ri.telefonica.com.br/en
SOURCE Telefônica Brasil S.A.
