SÃO PAULO, Feb. 20, 2024 /PRNewswire/ –Telefônica Brasil – (B3: VIVT3; NYSE: VIV), announces its results for 4Q23 and 2023.
Net Income expands by +23.1% YoY in 2023, led by real top-line growth
R$ million
4Q23
4Q22
% Y-o-Y
2023
2022
% Y-o-Y
Net Operating Revenue
13,535
12,659
6.9
52,100
48,041
8.4
Core Revenue
12,790
11,771
8.7
48,910
44,151
10.8
Mobile Revenue
9,643
8,899
8.4
36,669
33,070
10.9
Fixed core revenue
3,146
2,872
9.5
12,241
11,081
10.5
Non-core Revenue
745
888
(16.1)
3,190
3,890
(18.0)
Total Costs
(7,783)
(7,425)
4.8
(30,782)
(28,760)
7.0
EBITDA
5,752
5,234
9.9
21,318
19,282
10.6
EBITDA Margin
42.5 %
41.3 %
1.1 p.p.
40.9 %
40.1 %
0.8 p.p.
EBITDA After Leases (AL)
4,461
4,110
8.5
16,572
14,940
10.9
EBITDA AL Margin
33.0 %
32.5 %
0.5 p.p.
31.8 %
31.1 %
0.7 p.p.
Net Income attributed to Telefônica Brasil
1,601
1,126
42.1
5,029
4,085
23.1
Earnings per Share (EPS)
0.97
0.68
42.8
3.03
2.44
24.0
CAPEX ex-IFRS 16
2,295
2,489
(7.8)
8,960
9,530
(6.0)
Operating Cash Flow (OpCF)
3,457
2,746
25.9
12,358
9,752
26.7
OpCF Margin
25.5 %
21.7 %
3.9 p.p.
23.7 %
20.3 %
3.4 p.p.
Operating Cash Flow After Leases (OpCF AL)
2,167
1,622
33.6
7,612
5,410
40.7
OpCF AL Margin
16.0 %
12.8 %
3.2 p.p.
14.6 %
11.3 %
3.4 p.p.
Free Cash Flow
592
816
(27.5)
8,148
7,289
11.8
Total Subscribers (Thousand)
113,001
112,330
0.6
113,001
112,330
0.6
Net revenue grew +6.9% YoY led by the increase in Mobile Service Revenue (MSR) (+8.7 YoY), that was driven by Postpaid Revenue (+11.3% YoY), which was positively impacted by the customer base increase, lowest historical churn level, at 0.97% per month, and highest ARPU in the last 4 years, R$51.3 (+8.1% YoY).
Fixed revenue maintained its positive performance, increasing +3.5% YoY, driven by FTTH revenues (+16.5% YoY) and Corporate Data, ICT and Other revenues (+9.9% YoY). FTTH network is currently present in 443 cities (+34 cities YoY) with 26.2 million homes passed (+12.4% YoY) and 6.2 million homes connected (+12.6% YoY).
EBITDA totaled R$5,752 (+9.9% YoY), with a margin of 42.5% (+1.1 p.p. YoY), due to strong performance of core revenues (+8.7% YoY) and ongoing control of costs (+4.8% YoY) in the quarter.
Operating Cash Flow grew (+25.9% YoY), with a margin of 25.5% (+3.9 p.p. YoY) over net revenue. In 2023, Capex ex-IFRS16 totaled R$8,960 million (-6.0% YoY) or 17.2% of revenues (-2.6 p.p. YoY), thus accomplishing the guidance of investing less than R$9 billion in the year.
Net income attributed to Telefônica Brasil reached R$5,029 million in 2023 (+23.1% YoY). Shareholder remuneration paid in 2023 hit R$4,786 million, of which R$2,471 million were in interest on capital, R$1,827 million in dividends and R$489 million in share buybacks. For the years 2024 to 2026, the Company has committed to distributing to its shareholders 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
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SOURCE Telefônica Brasil S.A.
