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Telefonica Brasil (VIV) Lags Q2 Earnings, Tops Revenues
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Brazilian telecom carrier Telefonica Brasil SA (VIV - Free Report) -- a subsidiary of Spanish telecom giant Telefonica SA (TEF - Free Report) -- reported mixed financial results in the second quarter of 2016. The company’s earnings missed the Zacks Consensus Estimate while revenues outpaced the same.
Second-quarter net income was approximately $200 million, down a substantial 29.3% year over year. Moreover, earnings per ADR (American Depository Receipt) were 12 cents, well below the Zacks Consensus Estimate of 19 cents.
Net operating revenues were around $2,998 million, up 9.5% year over year and ahead of the Zacks Consensus Estimate of $2,935 million.
Total operating costs in the reported quarter were approximately $2,085 million, down 0.4% year over year. Quarterly EBITDA (earnings before interest, tax, depreciation and amortization) was about $912.8 million, reflecting an increase of 3.7% year over year. EBITDA margin was 30.5% compared with 29.6% in the prior-year quarter.
Mobile Business’ total revenue declined 13.5% year over year to approximately $1,787.2 million in the reported quarter.
As of Jun 30, 2016, the company’s total mobile subscriber base touched 73.2961 million (down 11.3% year over year). Post-paid subscriber count increased 6.9% year over year to 31.6267 million, while the prepaid customer count fell 21.5% year over year to 41.6694 million. M2M customer base was 4.5903 million, up 16.6% year over year.
Fixed Line Business’ total revenue dropped 3.6% year over year to approximately $1,210.3 million. Pay-TV revenues jumped 18.8% while broadband revenues decreased 0.7% year over year.
As of Jun 30, 2016, total fixed telephony access lines were 14.7421 million, reflecting a 0.9% year-over-year decrease. Fixed Broadband customers were 7.2635 million, up 2.4% year over year. Internet and data access lines were 7.3218 million, up 1.4% year over year. The Pay-TV subscriber base declined 1.4% year over year to 1.7614 million.
ARPU & Churn Rate
Quarterly data ARPU (average revenue per user) was up a substantial 40.9% to about $4.06 while quarterly voice revenue per user dropped 2.5% to around $13.66. Mobile ARPU was around $7.45, up 18.6% year over year. Mobile monthly churn rate was 3.1%, compared with 3.2% in the year-ago quarter. Postpaid monthly churn rate was 1.9%, flat year over year.
Liquidity
Telefonica Brasil exited the second quarter of 2016 with cash and cash equivalents of around $1,056.8 million, down 22% from the end of 2015.
Zacks Rank
Telefonica Brasil currently carries a Zacks Rank #2 (Buy). Other favorably ranked stocks worth considering in this sector include Cincinnati Bell Inc. and Telecom Italia S.p.A. . Both the stocks have the same Zacks Rank as Telefonica Brasil.
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Telefonica Brasil (VIV) Lags Q2 Earnings, Tops Revenues
Brazilian telecom carrier Telefonica Brasil SA (VIV - Free Report) -- a subsidiary of Spanish telecom giant Telefonica SA (TEF - Free Report) -- reported mixed financial results in the second quarter of 2016. The company’s earnings missed the Zacks Consensus Estimate while revenues outpaced the same.
Second-quarter net income was approximately $200 million, down a substantial 29.3% year over year. Moreover, earnings per ADR (American Depository Receipt) were 12 cents, well below the Zacks Consensus Estimate of 19 cents.
Net operating revenues were around $2,998 million, up 9.5% year over year and ahead of the Zacks Consensus Estimate of $2,935 million.
Total operating costs in the reported quarter were approximately $2,085 million, down 0.4% year over year. Quarterly EBITDA (earnings before interest, tax, depreciation and amortization) was about $912.8 million, reflecting an increase of 3.7% year over year. EBITDA margin was 30.5% compared with 29.6% in the prior-year quarter.
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Segment-wise Results
Mobile Business’ total revenue declined 13.5% year over year to approximately $1,787.2 million in the reported quarter.
As of Jun 30, 2016, the company’s total mobile subscriber base touched 73.2961 million (down 11.3% year over year). Post-paid subscriber count increased 6.9% year over year to 31.6267 million, while the prepaid customer count fell 21.5% year over year to 41.6694 million. M2M customer base was 4.5903 million, up 16.6% year over year.
Fixed Line Business’ total revenue dropped 3.6% year over year to approximately $1,210.3 million. Pay-TV revenues jumped 18.8% while broadband revenues decreased 0.7% year over year.
As of Jun 30, 2016, total fixed telephony access lines were 14.7421 million, reflecting a 0.9% year-over-year decrease. Fixed Broadband customers were 7.2635 million, up 2.4% year over year. Internet and data access lines were 7.3218 million, up 1.4% year over year. The Pay-TV subscriber base declined 1.4% year over year to 1.7614 million.
ARPU & Churn Rate
Quarterly data ARPU (average revenue per user) was up a substantial 40.9% to about $4.06 while quarterly voice revenue per user dropped 2.5% to around $13.66. Mobile ARPU was around $7.45, up 18.6% year over year. Mobile monthly churn rate was 3.1%, compared with 3.2% in the year-ago quarter. Postpaid monthly churn rate was 1.9%, flat year over year.
Liquidity
Telefonica Brasil exited the second quarter of 2016 with cash and cash equivalents of around $1,056.8 million, down 22% from the end of 2015.
Zacks Rank
Telefonica Brasil currently carries a Zacks Rank #2 (Buy). Other favorably ranked stocks worth considering in this sector include Cincinnati Bell Inc. and Telecom Italia S.p.A. . Both the stocks have the same Zacks Rank as Telefonica Brasil.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>