SAO PAULO, Oct. 25, 2016 /PRNewswire/ -- Telefônica Brasil - (Bovespa: VIVT3 [Common Shares] / VIVT4 [Preferred Shares]; NYSE: VIV), announces its results for the 3Q16. In 3Q16, Vivo maintains capture of synergies and efficiency initiatives, with solid margin expansion and cash flow generation.



    Consolidated in R$ million                                                          3Q16                     % y-o-y                      9M16               % y-o-y


    Net Operating Revenues                                                                     10,693.4                      1.1                        31,634.8              0.8

    Net mobile revenues                                                                         6,439.0                      2.7                        18,945.6              1.3

    Net fixed revenues                                                                          4,254.4                    (1.4)                       12,689.2              0.2

    Operating costs                                                                           (7,283.1)                   (2.2)                     (21,235.7)           (3.9)

    Recurring Operating costs*                                                                (7,283.1)                   (1.9)                     (21,648.0)           (1.9)

    EBITDA                                                                                      3,410.3                      8.8                        10,399.1             12.0

    EBITDA Margin %                                                                             31.9%                2.3 p.p.                          32.9%        3.3 p.p.

    Recurring EBITDA*                                                                           3,410.3                      8.1                         9,986.8              7.4

    Recurring EBITDA Margin %*                                                                    31.9%                2.1 p.p.                          31.6%        1.9 p.p.

    Net income                                                                                    952.7                      9.6                         2,870.4             29.5


    Number of accesses (thousand)                                                                97,202                    (6.2)                         97,202            (6.2)

    Mobile accesses                                                                              73,495                    (7.5)                         73,495            (7.5)

    Fixed accesses                                                                               23,707                    (2.3)                         23,707            (2.3)
    --------------                                                                               ------                     ----                          ------             ----

    (*) Adjusted by the towers sale in 1Q16 in the amount of R$ 513.5 million, provision for organizational restructure in 2Q16 in the amount of R$ 101.2
     million and in 3Q15 in the amount of R$ 19.2 million.

Leadership in postpaid, with continued growth (+6.8% y-o-y in 3Q16) and share of net additions reaching 42.9% until August 2016. Postpaid market share stood at 42.4% in August (+0.3 p.p. y-o-y).

Mobile ARPU recorded y-o-y growth of 14.9% in 3Q16, driven by market rationality, the increased mix of postpaid clients and the 35% y-o-y growth in Data ARPU, which corresponded to 58.9% of total ARPU in the period.

Broadband accesses totaled 7.3 million in 3Q16 (+1.8% y-o-y), with FTTx accounting for 56.3% of the total accesses and with an 8.6% y-o-y growth. Broadband ARPU increased by 7.8% y-o-y in 3Q16, influenced by the growth in the ultra-broadband customer base.

Pay TV accesses totaled 1.8 million in 3Q16, with IPTV growth of 38.5%, while pay TV ARPU grew 12.4%, reflecting the Company's strategy of focusing on higher-value clients.

Net operating services revenue grew 2.2% in 3Q16 over 3Q15 (+4.5% y-o-y excluding regulatory effects), maintaining its positive performance.

Mobile services revenue climbed 4.9% y-o-y in 3Q16. Excluding the effect of MTR reductions in 2016, this line increased 7.0% over 3Q15. Data and digital services revenue rose 23.3% y-o-y in 3Q16, driven by the strong increase in mobile internet revenue, which grew 36.4% over 3Q15.

Operating costs fell 2.2% y-o-y in 3Q16. Excluding the effect from the corporate restructuring in 3Q15, the reduction was 1.9%, reflecting the continuous efforts to reduce costs by focusing on increasing efficiency and synergies.

EBITDA totaled R$3.4 billion in 3Q16, 8.8% up on 3Q15, with an EBITDA margin of 31.9% (+2.3 p.p. y-o-y). Excluding the R$19.2 million non-recurring effect in 3Q15, EBITDA climbed 8.1% y-o-y, with a margin increase of 2.1 p.p. over the previous year, driven by the capture of synergies and efficiency initiatives.

Third-quarter investments amounted to R$1.9 billion, accounting for 18.2% of net operating revenue. Recurring EBITDA - Capex grew by 42.3% over 3Q15, with a strong expansion in FCF (+36.7% y-o-y).

The focus on executing synergies guaranteed the capture of 64% of NPV of best case scenario and fully delivering the NPV of the base case scenario.

TELEFÔNICA BRASIL - Investor Relations
Amos Genish
David Melcon
Luis Plaster
Maria Tereza David
+55-11-3430-3687 / 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

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

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SOURCE Telefonica Brasil S.A.