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3Q17 Results: Telefonica Brasil S.A.

SAO PAULO, Oct. 25, 2017 /PRNewswire/ -- Telefonica Brasil - (B3: VIVT3 [Common Shares] / VIVT4 [Preferred Shares]; NYSE: VIV), announces its results for the 3Q17. With positive evolution across all service revenue lines and cost savings for the seventh consecutive quarter, Vivo reached 7.8% of EBITDA growth and 28.3% of Net Income growth in 3Q17.

Consolidated in R$ million

3Q17

% y-o-y








Net Operating Revenues

10,885.9

1.8



Net Operating Services Revenues

10,631.3

2.4



Net mobile services revenues

6,355.5

3.7



Net fixed revenues

4,275.8

0.5



Net handset revenues

254.6

(17.2)



Operating costs

(7,209.0)

(1.0)



EBITDA

3,676.9

7.8



EBITDA Margin %

33.8%

1.9 p.p.



Net Income

1,222.7

28.3








Number of accesses (thousand)

97,639

0.5



Mobile accesses

74,562

1.5



Fixed accesses

23,077

(2.7)






Mobile Market share expansion, reaching 30.8% in August 2017 (+1.5 p.p. y-o-y).

Mobile ARPU recorded y-o-y growth of 3.7% in 3Q17, fueled by a higher share of postpaid clients in the mix and increased data usage. Data ARPU grew 26.3% y-o-y in 3Q17, corresponding for 72.9% of total ARPU.

Broadband accesses totaled 7.5 million customers in 3Q17 (+1.9% y-o-y), with FTTx[1] connections already accounting for 60.0% of the base after a y-o-y growth of 8.7%. Broadband ARPU increased 16.5% in 3Q17 over 3Q16, influenced by the evolution of the ultra-broadband customer base.

Net operating service revenue grew 2.4% in 3Q17 over 3Q16 (4.3% up y-o-y excluding regulatory effects), maintaining the positive trajectory observed in the last quarters.

Mobile services revenue rose 3.7% y-o-y in 3Q17. Excluding the effect from MTR reductions in 2017, this line increased 6.1% over 3Q16. Data and digital services revenue increased 28.2% y-o-y in 3Q17, accounting for 72.9% of mobile services revenue.

Operating costs fell 1.0% in 3Q17 versus 3Q16 (LTM IPCA +2.5%), demonstrating the continued efforts and focus on the pursuit of efficiencies and end-to-end digitalization.

EBITDA totaled R$3.7 billion in 3Q17, 7.8% up on 3Q16, yielding an EBITDA margin of 33.8% (+1.9 p.p. y-o-y), fueled by the acceleration of mobile service revenues and efficiency measures adopted by the Company.

CAPEX amounted to R$2.2 billion in 3Q17, focused on 4G coverage (442 new cities added in the quarter, totaling 1,403 during the first nine months of 2017) and FTTH expansion (12 new cities with FTTH in the year).

EBITDA – Capex (ex. licenses) grew 16.0% in 3Q17 over 3Q16, reaching R$1.5 billion.

Net income totaled R$1,222.7 million in 3Q17 (+28.3% y-o-y), with IOC for the fiscal year amounting to R$930.0 million in 2017.

TELEFONICA BRASIL – Investor Relations

Eduardo Navarro

David Melcon

Luis Plaster

Joao Pedro Carneiro

+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

[1] FTTx includes FTTH (Fiber to the home), FTTC (Fiber to the cabinet) and cable customers

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SOURCE Telefonica Brasil S.A.