2Q22 Results: Telefônica Brasil S.A.

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

Acceleration of the customer base evolution leads to double-digit revenue growth

Net Operating Revenue grew 11.1% YoY (or +7.6% YoY when excluding the effect of the Oi Mobile acquisition) led by Mobile Service Revenue which increased 15.1% on a yearly comparison (or +9.4% YoY when excluding the effect of

the Oi Mobile acquisition). Revenue increase was driven by the accelerated expansion of the customer base growth, which now has 114 million total accesses, due to the incorporation of Oi Mobile and solid organic growth in the quarter. Handset revenue had a robust increase of 26.4% YoY, given the larger portfolio of smartphones and accessories at Vivo’s stores. 

We added 4,671 thousand postpaid accesses with the acquisition of Oi Mobile. However, our organic growth also presented solid additions of 1,361 thousand new accesses this quarter. Core services subscribers account now for 93.1% of all accesses, a 2.9 p.p. YoY increase.

Vivo reached 5.0 million (+24.8% YoY) homes connected with FTTH. Currently, Vivo’s FTTH coverage is available in 354 cities (+13 cities in 2Q22), with

Core fixed revenue (+10.8% YoY), now corresponds to 73.3% (+6.0 p.p.) of our Net Fixed Revenue (+1.7% YoY). This growth relates to a 23.7% YoY increase in FTTH Revenue, as we continue to expand our network and connect customers throughout Brazil. Core business revenue now represents 91.6% (+2.9 p.p.) of total revenues.

Recurring Total Costs grew 12.9% YoY, slightly above inflation (IPCA-12M), which increased 11.9%.  

Recurring EBITDA totaled R$4,578 million (+8.3% YoY) in 2Q22, with a Recurring EBITDA margin of 38.7%.

In 2Q22, we bought back R$ 198 million in shares with the new Share Buyback Program that will last until Feb-23. In the last 12 months, the Company registered 122% in dividend payout, and an 8.4% dividend yield, considering the share buyback program.

Free Cash Flow after Leases reached R$ 2.2 billion this quarter (+15.5% YoY).

In July 2022, Telefônica Brasil issued R$3.5 billion in Sustainability-Linked Bonds, a debt instrument linked to the achievement of ESG goals. This investment commits the Company to reduce 40% of direct emissions of Greenhouse Gases and reach at least 30% of black people in leadership positions by 2027.

TELEFÔNICA BRASIL – Investor Relations

Christian Gebara
David Melcon
João Pedro Carneiro
Gabriel Figueiredo Menezes 
ir.br@telefonica.com 

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

View original content:https://www.prnewswire.com/news-releases/2q22-results-telefonica-brasil-sa-301593829.html

SOURCE Telefônica Brasil S.A.

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