SAO PAULO, Nov. 11, 2014 /PRNewswire/ -- Telefonica Brasil - (Bovespa: VIVT3 [ON = Common Shares] / VIVT4 [PN = Preferred Shares]; NYSE: VIV), announces its consolidated results for the third quarter of 2014. Telefonica Brasil consolidates its leadership within higher value customers and presents a solid revenue evolution and cost discipline in the 3Q14. 



    R$ million                    3Q14           % YoY        9M14              % YoY
    ----------                    ----           -----        ----              -----

    Net Revenue                          8,723.9          1.2          25,952.4            1.1

    Operating Costs                    (6,176.4)       (1.0)       (18,296.6)           1.9

    EBITDA                               2,547.5          7.0           7,655.8          (0.6)

    EBITDA Margin (%)                     29.2%         1.6             29.5%         (0.5)

    Recurrent EBITDA Margin (%)           29.2%         1.6             29.5%         (0.6)

    Net Result                           1,022.3         34.5           3,675.7           47.9
    ----------                           -------         ----           -------           ----

    Number of accesses (thousand)         95,437          4.1            95,437            4.1

    Mobile accesses                       79,823          4.2            79,823            4.2

    Fixed accesses                        15,614          3.5            15,614            3.5

Total accesses reached 95.4 million in the quarter. Leadership in higher revenue mobile segments, with continuous growth in postpaid accesses (+22.8% y-o-y), with net additions reaching 1,014 thousand in the quarter.

Postpaid clients accounted for 34.1% of the mobile access base in 3Q14, influenced by the large share of postpaid net additions (61% Jan to Aug/14).

Data ARPU grew by 16.2% y-o-y, contributing to a stable annual performance of Mobile ARPU, despite the MTR reduction.

Broadband accesses totaled 3,947 thousand in 3Q14, mainly supported by the growth in FTTH solution, which already totals 322 thousand accesses. TV accesses recorded accelerated growth, with annual upturn of 26.1%. In 3Q14, TV net additions came to 40 thousand accesses.

Mobile service revenue recorded variation of +3.5% y-o-y. Excluding the effect of the MTR reduction, the variation would be of +6.8% in 3Q14 over 3Q13. Fixed service revenue posted y-o-y variation of -3.2% (-5.4% y-o-y in 2Q14). Excluding the reduction of the VC and basic tariff, this figure posted growth of 0.4% in 3Q14 over 3Q13.

Operating costs posted a reduction of 1.0% over 3Q13 and controlled growth of 1.7% q-o-q.

3Q14 EBITDA totaled R$2.5 billion, recording growth for the second consecutive quarter, up 7.0% y-o-y in 3Q14. The third-quarter EBITDA margin was 29.2%, +1.6 p.p. over 3Q13.

Net income came to R$1.0 billion (+34.5% y-o-y), and R$3.7 billion in 9M14 (+47.9% y-o-y).

TELEFONICA BRASIL - Investor Relations
Paulo Cesar Teixeira
Alberto Horcajo Aguirre
Luis Carlos Plaster
Maria Tereza Pelicano David

Av. Luis Carlos Berrini, 1376 - 28th floor - Cidade Moncoes - SP - 04571-936
Phone: +55 11 3430-3687 / Email: 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:
Telefonica 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

SOURCE Telefonica Brasil S.A.