2Q22 results: Telefônica Brasil SA

SAO PAULO, July 26, 2022 /PRNewswire/ — Telefônica Brasil – (B3: VIVT3; NYSE: VIV), announces its results for 2Q22.

Accelerating Customer Base Evolution Drives Double-Digit Revenue Growth

million reais

2Q22

2Q21

% year

6M22

6M21

% year








Net operating income

11,831

10,649

11.1

23,183

21,498

7.8

Basic income

10,839

9,453

14.7

21,124

19,016

11.1

Mobile revenue

8,110

6,990

16.0

15,691

14,138

11.0

Fixed basic income

2,729

2,462

10.8

5,433

4,878

11.4

Non-essential income

992

1,197

(17.1)

2,059

2,483

(17.1)

Total recurring costs

(7,253)

(6,423)

12.9

(14,093)

(12,817)

10.0

Total declared costs

(7,253)

(5,860)

23.8

(14,093)

(12,254)

15.0

Recurring EBITDA

4,578

4,226

8.3

9,090

8,681

4.7

Recurring EBITDA margin

38.7%

39.7%

(1.0)pp

39.2%

40.4%

(1.2)pp

Reported EBITDA

4,578

4,789

(4.4)

9,090

9,244

(1.7)

% of reported EBITDA margin

38.7%

45.0%

(6.3) pp

39.2%

43.0%

(3.8)pp

Net revenue

746

1,345

(44.6)

1,496

2,287

(34.6)








Capex | Ex-IFRS 16

2,575

2,251

14.4

4,455

4,194

6.2

Operating Cash Flow (OpCF)

2003

1,975

1.4

4,634

4,487

3.3

OpCF/net revenue margin

16.9%

18.5%

0.1

20.0%

20.9%

(4.2)

Free cash flow after lease payments

2,157

1,868

15.5

4,634

4,067

(13.9)








Total number of subscribers (thousands)

113,706

96,721

17.6

113,706

96,721

17.6

Main subscribers

105,821

87 197

21.4

105,821

87 197

21.4

Non-core subscribers

7,885

9,524

(17.2)

7,885

9,524

(17.2)

Net operating income grown up 11.1% YoY (or +7.6% YoY excluding the impact of the Oi Mobile acquisition) driven by Mobile service revenues which increased by 15.1% on an annual basis (or +9.4% over one year excluding the effect

acquisition of Oi Mobile). The revenue increase was driven by the accelerated expansion of the customer growthwhich now has 114 million accesses in total, due to the constitution of Oi Mobile and solid organic growth in the neighborhood. Handset revenue recorded a strong increase of 26.4% year-on-year, given the larger portfolio of smartphones and accessories in Vivo stores.

We have added 4,671,000 postpaid accesses with the acquisition of Oi Mobile. However, our organic growth also made solid contributions 1,361,000 new accesses this quarter. Basic services subscribers now count for 93.1% of all accessesa 2.9 pp increase year-over-year.

long live reached 5.0 million (+24.8% over one year) connected households with FTTH. Currently, Vivo’s FTTH coverage is available in 354 cities (+13 cities in 2Q22), with 21.0 million households passed.

Core Fixed Income (+10.8% YoY)now corresponds to 73.3% (+6.0 pp) of our Net fixed income (+1.7% over one year). This growth is linked to a 23.7% year-on-year increase FTTH revenuesas we continue to expand our network and connect customers through Brazil. Main activity income now accounts for 91.6% (+2.9 pp) of total turnover.

Total recurring costs increased by 12.9% year-on-yearslightly above inflation (IPCA-12M), which increased by 11.9%.

Recurring EBITDA totaled 4,578 million reais (+8.3% year-on-year) in 2Q22, with a recurring EBITDA margin of 38.7%.

In 2Q22, we bought 198 million reais in shares with the new Share buyback program which will last until February 23. Over the past 12 months, the Company has recorded 122% dividend distributionAnd one Dividend yield of 8.4%given the share buyback program.

Free cash flow after leases achieved 2.2 billion reais this quarter (+15.5% over one year).

In July 2022Telefônica Brasil issued R$3.5 billion in sustainability bonds, a debt instrument linked to the achievement of ESG objectives. This investment commits the company to reducing its direct greenhouse gas emissions by 40% and reaching at least 30% black people in leadership positions by 2027.

TELEFÔNICA BRASIL – Investor Relations

Christian Gebara
David Melcon
Joe Pedro Carneiro
Gabriel Figueiredo Menezes
[email protected]

To download the full version of the company’s earnings release, please visit our website: http://www.telefonica.com.br/ir

SOURCE Telefonica Brasil SA

Comments are closed.