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Telefonica Brasil (VIV) Tops Q4 Earnings, Revenues Grow Y/Y
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Brazilian telecom carrier Telefonica Brasil SA (VIV - Free Report) recently reported impressive financial results in the fourth quarter of 2016.
Fourth-quarter net income was approximately $368 million, down 37.4% year over year. However, earnings per ADR (American Depository Receipt) were 22 cents, well above the Zacks Consensus Estimate of 19 cents.
Net operating revenue was around $3,296 million, up 17.8% year over year.
Total operating costs in the reported quarter were approximately $2,196.8 million, down 1.1% year over year. Quarterly EBITDA (earnings before interest, tax, depreciation and amortization) was about $1,097.9 million, reflecting an increase of 5.6% year over year. EBITDA margin was 33.3% compared with 29.9% in the prior-year quarter.
Telefonica Brasil currently carries a Zacks Rank #4 (Sell). The company is a subsidiary of Spanish telecom giant Telefonica SA (TEF - Free Report) . The company shares a fiercely competitive space with the likes of America Movil SAB (AMX - Free Report) in Brazil. U.S. telecom giant AT&T Inc. (T - Free Report) may also enter in the Brazilian market in future further intensifying the competition. Telefonica SA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Segment-wise Results
Mobile Business’ total revenue increased 3.9% year over year to approximately $1,913.7 million in the reported quarter. As of Dec 31, 2016, the company’s total mobile subscriber base touched 73.778 million (up 0.7% year over year). Post-paid subscriber count increased 7.9% year over year to 33.2 million, while the prepaid customer count fell 4.5% year over year to 40.5779 million. In the reported quarter, the company added a net 891,000 postpaid mobile subscribers.
Fixed Line Business’ total revenue dropped 1.2% year over year to approximately $1,297.1 million. Voice revenues dropped 7.9% while Pay-TV, UBB and Data & IT revenue rose 4.6%, 17.5% and 3.1%, respectively.
As of Dec 31, 2016, total fixed access lines were 23.352 million, reflecting a decrease of 2% year-over-year. Fixed Broadband customers were 7.2391 million, up 3% year over year. Internet and data access lines were 7.296 million, up 3% year over year. The Pay-TV subscriber base declined 4% year over year to 1.6347 million.
ARPU & Churn Rate
Quarterly data ARPU (average revenue per user) was up a substantial 31.8% to about $5.37 while quarterly voice revenue per user dropped 12.4% to around $3.29. Mobile ARPU was around $8.67, up 10.8% year over year. Mobile monthly churn rate was 3.4%, compared with 4.7% in the year-ago quarter. Postpaid monthly churn rate was 1.6% compared with 1.8% in the year-ago quarter.
Liquidity
Telefonica Brasil exited 2016 with a net debt of around $1,242.3 million, down 10.9% from the end of 2015.
Telefonica Brasil S.A. Price, Consensus and EPS Surprise
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Telefonica Brasil (VIV) Tops Q4 Earnings, Revenues Grow Y/Y
Brazilian telecom carrier Telefonica Brasil SA (VIV - Free Report) recently reported impressive financial results in the fourth quarter of 2016.
Fourth-quarter net income was approximately $368 million, down 37.4% year over year. However, earnings per ADR (American Depository Receipt) were 22 cents, well above the Zacks Consensus Estimate of 19 cents.
Net operating revenue was around $3,296 million, up 17.8% year over year.
Total operating costs in the reported quarter were approximately $2,196.8 million, down 1.1% year over year. Quarterly EBITDA (earnings before interest, tax, depreciation and amortization) was about $1,097.9 million, reflecting an increase of 5.6% year over year. EBITDA margin was 33.3% compared with 29.9% in the prior-year quarter.
Telefonica Brasil currently carries a Zacks Rank #4 (Sell). The company is a subsidiary of Spanish telecom giant Telefonica SA (TEF - Free Report) . The company shares a fiercely competitive space with the likes of America Movil SAB (AMX - Free Report) in Brazil. U.S. telecom giant AT&T Inc. (T - Free Report) may also enter in the Brazilian market in future further intensifying the competition. Telefonica SA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Segment-wise Results
Mobile Business’ total revenue increased 3.9% year over year to approximately $1,913.7 million in the reported quarter. As of Dec 31, 2016, the company’s total mobile subscriber base touched 73.778 million (up 0.7% year over year). Post-paid subscriber count increased 7.9% year over year to 33.2 million, while the prepaid customer count fell 4.5% year over year to 40.5779 million. In the reported quarter, the company added a net 891,000 postpaid mobile subscribers.
Fixed Line Business’ total revenue dropped 1.2% year over year to approximately $1,297.1 million. Voice revenues dropped 7.9% while Pay-TV, UBB and Data & IT revenue rose 4.6%, 17.5% and 3.1%, respectively.
As of Dec 31, 2016, total fixed access lines were 23.352 million, reflecting a decrease of 2% year-over-year. Fixed Broadband customers were 7.2391 million, up 3% year over year. Internet and data access lines were 7.296 million, up 3% year over year. The Pay-TV subscriber base declined 4% year over year to 1.6347 million.
ARPU & Churn Rate
Quarterly data ARPU (average revenue per user) was up a substantial 31.8% to about $5.37 while quarterly voice revenue per user dropped 12.4% to around $3.29. Mobile ARPU was around $8.67, up 10.8% year over year. Mobile monthly churn rate was 3.4%, compared with 4.7% in the year-ago quarter. Postpaid monthly churn rate was 1.6% compared with 1.8% in the year-ago quarter.
Liquidity
Telefonica Brasil exited 2016 with a net debt of around $1,242.3 million, down 10.9% from the end of 2015.
Telefonica Brasil S.A. Price, Consensus and EPS Surprise
Telefonica Brasil S.A. Price, Consensus and EPS Surprise | Telefonica Brasil S.A. Quote
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>