4Q23 and 2023 Results: Telefônica Brasil S.A.

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.