4Q20 Results: Telefônica Brasil S.A.
SÃO PAULO, Feb. 23, 2021 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3 [Common Shares]; NYSE: VIV), announces its results for 4Q20 and 2020.
Leadership reaffirmed in mobile and fiber, combined with strong financial performance and shareholder remuneration
R$ million | 4Q20 | % y-o-y | 2020 | % y-o-y |
Net Operating Revenues | 11,193 | (1.6) | 43,126 | (2.6) |
Net Mobile Revenues | 7,569 | 1.6 | 28,421 | (0.9) |
Net Fixed Revenues | 3,623 | (7.7) | 14,705 | (5.7) |
Operating Costs | (6,316) | (1.5) | (25,318) | (3.4) |
Recurring Operating Costs | (6,316) | (3.4) | (25,394) | (3.5) |
EBITDA | 4,877 | (1.8) | 17,808 | (1.8) |
EBITDA Margin | 43.6% | (0.1) p.p. | 41.3% | 0.3 p.p. |
Recurring EBITDA | 4,877 | 0.8 | 17,733 | (1.2) |
Recurring EBITDA Margin % | 43.6% | 1.0 p.p. | 41.1% | 0.6 p.p. |
Net Income | 1,293 | 1.5 | 4,771 | (4.6) |
Capex Ex- Licenses | Ex- IFRS 16 | 2,429 | 3.1 | 7,789 | (11.9) |
Free Cash Flow after Lease Payments | 708 | (72.8) | 9,610 | 12.6 |
Total Subscribers (thousand) | 95,051 | 1.5 | 95,051 | 1.5 |
Mobile subscribers | 78,532 | 5.3 | 78,532 | 5.3 |
Fixed subscribers | 16,519 | (13.3) | 16,519 | (13.3) |
Core Revenues | 9,828 | 3.2 | 37,030 | 1.5 |
Core Revenues / Net Operating Revenues | 87.8% | 4.1 p.p. | 85.9% | 3.5 p.p. |
Non-core Revenues | 1,365 | (26.4) | 6,096 | (21.7) |
Non-core Revenues / Net Operating Revenues | 12.2% | (4.1) p.p. | 14.1% | (3.5) p.p. |
Mobile market share reached 33.6% in December 2020 and remains at historic highs. Postpaid accesses grew 3.9% y-o-y and accounted for 57% of total mobile accesses, with a market share of 37.7% in December 2020 and the lowest churn in 5 years.
Fiber-to-the-home broadband customers totaled 3,378 thousand (+36% y-o-y), posting accelerated additions of high-quality customers in 4Q20. FTTH ARPU increased 13% versus 4Q19, reaching R$91.9.
Core businesses represented 88% of total revenues with increasing relevance. FTTH revenues continue to grow significantly (+52.9% y-o-y) while mobile service revenues are showing solid recovery growing 2.1% y-o-y.
Operating Costs decreased 3.4% y-o-y in 4Q20, driven by digitalization and automation initiatives.
Recurring EBITDA totaled R$4,877 million (+0.8% y-o-y) in 4Q20, with a recurring EBITDA margin of 43.6%.
Investments of R$7,789 million in 2020, focused on the expansion of the FTTH network and the capacity of the 4G and 4.5G networks.
Net Income of R$1,293 million in 4Q20, up 1.5% y-o-y. In 2020, net income reached R$4,771 million, down 4.6% y-o-y. Proposed shareholder remuneration based on 2020 profit reaches R$5,418 million, representing a payout of 113.6%, with a dividend yield of 7.0%.
Free Cash Flow after Leasing payments reached R$9,610 million in 2020 (+12.6% y-o-y), the highest ever cash generation as a result of Capex optimization and lower operating, financial and tax payments.
TELEFÔNICA BRASIL – Investor Relations
Christian Gebara
David Melcon
Luis Plaster
João Pedro Carneiro
+55 11 3430-3687 / ir.br@telefonica.com
To download the complete version of the Company's earnings release, please visit our website: http://www.telefonica.com.br/ir
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SOURCE Telefônica Brasil
