3Q20 Results: Telefônica Brasil S.A.
SAO PAULO, Oct. 27, 2020 /PRNewswire/ -- Telefônica Brasil - (B3: VIVT3 [Common Shares] / VIVT4 [Preferred Shares]; NYSE: VIV), announces its results for 3Q20.
Record fiber net adds and recovery of prepaid confirms Vivo's sequential operating improvement combined with superior cash generation
Fiber-to-the-home broadband customers totaled 3,130 thousand (+34.2% y-o-y), posting record net additions for the third quarter in a row and representing almost 50% of broadband accesses. Overall broadband ARPU increased 17% versus 3Q19, reaching R$77.7.
Mobile market share reached 33.3% in August 2020, 8.7 p.p. more than the second player and the highest level in over 14 years. Postpaid accesses grew 3.9% y-o-y and accounted for 57.3% of total mobile accesses, with a market share of 38.5% in August 2020 and the lowest churn in 5 years.
Fiber-to-the-home and IPTV revenues continue to grow significantly (+56.0% y-o-y and +26.9% y-o-y, respectively) while mobile revenue is showing recovery to pre-pandemic levels, growing 3.3% over 2Q20.
Operating Costs decreased 0.6% y-o-y in 3Q20, due to lower costs with commercial expenses, mainly reflecting the growing digitalization and automation of customer service activities and lower commercial activity.
Recurring EBITDA totaled R$4,322 million (-3.5% y-o-y) in 3Q20, with a recurring EBITDA margin of 40.0%.
Investments of R$1,803 million in 3Q20, focused on the expansion of the fiber-to-the-home network and the quality and capacity of the 4G and 4.5G networks.
Net Income of R$1,212 million in 3Q20, up 25.5% y-o-y. Profit distribution based on 9M20 profit reaches R$2.0 billion.
Free Cash Flow after Leasing payments reached R$3,540 million in the quarter and R$8,901 million in 9M20 (+34.5% y-o-y and 50.1% y-o-y, respectively), as a result of Capex optimization and lower operating, financial and tax payments.
Financial services: launch of Vivo Money, a 100% digital platform, focused on offering fast and simple personal loans to postpaid customers.
TELEFÔNICA BRASIL – Investor Relations
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
Company Codes: NYSE:VIV, SaoPaulo:CETE4, SaoPaulo:VIVT3
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