4Q16 Results: Telefônica Brasil S.A.

SAO PAULO, Feb. 21, 2017 /PRNewswire/ -- Telefônica Brasil - (Bovespa: VIVT3 [Common Shares] / VIVT4 [Preferred Shares]; NYSE: VIV), announces its results for the 4Q16. In 4Q16, Vivo maintains capture of synergies and efficiency initiatives, with solid margin expansion and cash flow generation.

Market share expansion, reaching 30% in December 2016 (+1.8 p.p. y-o-y).

Mobile ARPU recorded y-o-y growth of 10.8% in 4Q16, fueled by the higher share of postpaid clients in the mix and the higher data usage, whose ARPU increased by 31.8% y-o-y in 4Q16, corresponding to 62.3% of total ARPU

Broadband accesses totaled 7.3 million customers in 4Q16 (+2.5% y-o-y), with FTTx* connections accounting for 57% of the base, accompanied by y-o-y growth of 9.3%. Broadband ARPU increased 7.5% in 4Q16 over 4Q15, influenced by the growth in the ultra-broadband customer base

Net operating service revenue grew 1.8% in 4Q16 over 4Q15 (4.2% up y-o-y excluding regulatory effects), and 1.7% in 2016 over 2015, maintaining the positive trajectory observed throughout the year.

Mobile services revenue rose 3.9% y-o-y in 4Q16. Excluding the effect from MTR reductions in 2016, this line increased 6.2% over 4Q15. Data and digital services revenue increased 23.7% y-o-y in 4Q16, accounting for 62% of mobile services revenue

Operating costs fell 1.1% in 4Q16 over 4Q15. Excluding the effect from the corporate restructuring in 4Q16, the reduction was 1.8% (LTM IPCA +6.3%), reflecting the continuous efforts to reduce costs by focusing on increasing efficiency and synergies

EBITDA totaled R$3.6 billion in 4Q16, 5.6% up on 4Q15, accompanied by an EBITDA margin of 33.3% (+1.4 p.p. y-o-y). Excluding the R$52.5 million non-recurring effect in 4Q16, EBITDA moved up by 7.1% over the previous year, with a margin growth of 1.9 p.p., fueled by the capture of synergies and efficiency initiatives. In 2016, recurring EBITDA totaled R$13,663 million (+7.3% y-o-y), accompanied by an EBITDA margin of 32.1% (+1.9 p.p. y-o-y)

CAPEX amounted to R$2.8 billion in 4Q16 and R$8.0 billion in 2016, excluding the investment in licenses made in the third quarter. EBITDA - Capex grew 28.2% in 2016 over 2015, reaching R$5.7 billion

The focus on executing synergies guaranteed the capture of 71% of NPV of best scenario and the full capture of the NPV of base scenario.

Net income totaled R$4,085 million in 2016 (+22.6% y-o-y), with IOC and dividends for the fiscal year amounting to R$4.1 billion, resulting in a payout of 105.6% on adjusted net income.

TELEFÔNICA BRASIL – Investor Relations
Eduardo Navarro
David Melcon
Luis Plaster
Maria Tereza David
+55 11 3430-3687 / ir.br@telefonica.com

Telefônica Brasil S.A.
Av. Eng. Luis Carlos Berrini, 1376 – 28º andar
São Paulo - 04571-936
Telefone: +55 11 7420-1172
E-mail: ri.telefonicabr@telefonica.com.br

To download the complete version of the Company's earnings release, please visit our website: http://www.telefonica.com.br/ir

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/4q16-results-telefonica-brasil-sa-300411179.html

SOURCE Telefonica Brasil S.A.