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Telefonica Brasil (VIV) Q1 Earnings Lag, Revenues Grow Y/Y
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Brazilian telecom carrier Telefonica Brasil SA (VIV - Free Report) recently reported mixed financial results in the first quarter of 2017.
First-quarter net income was approximately $316.9 million, down 18.2% year over year. Earnings per ADR (American Depository Receipt) were 19 cents, a penny shy of the Zacks Consensus Estimate.
Net operating revenues were around $3,369.1 million, up 1.5% year over year.
Total operating costs in the reported quarter were approximately $2,250.9 million, up 6.5% year over year. Quarterly EBITDA (earnings before interest, tax, depreciation and amortization) was about $1,117.8 million, reflecting a decrease of 7.2% year over year. EBITDA margin was 33.2% compared with 36.6% in the prior-year quarter.
Telefonica Brasil 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. The company 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 5% year over year to approximately $1,974.8 million in the reported quarter. As of Mar 31, 2017, the company’s total mobile subscriber base touched 73.997 million (up 1% year over year). Post-paid subscriber count increased 8.2% year over year to 33.825 million, while the prepaid customer count fell 4.4% year over year to 40.171 million. In the reported quarter, the company added a net 435,000 postpaid mobile subscribers.
Fixed Line Business’ total revenue dropped 2.2% year over year to approximately $1,312.5 million. Handset revenues were $81.4 million, down 15.2% year over year.
As of Mar 31, 2017, total fixed access lines were 23.239 million, reflecting a decrease of 3% year-over-year. Fixed Broadband customers were 7.336 million, up 1.7% year over year. Fixed voice lines were 14.242 million, down 4.7% year over year. The Pay-TV subscriber base declined 7% year over year to 1.661 million.
ARPU & Churn Rate
Quarterly data ARPU (average revenue per user) was up a substantial 35.8% to about $6.11 while quarterly voice revenue per user dropped 31.1% to around $2.80. Mobile postpaid ARPU was around $16.54, up 3.8% year over year. Mobile postpaid monthly churn rate was 1.7%, compared with 1.8% in the year-ago quarter. Mobile prepaid ARPU was around $4.33, down 2.1% year over year. Prepaid monthly churn rate was 4.7% compared with 4.5% in the year-ago quarter.
Liquidity
Telefonica Brasil exited the first quarter of 2017 with a net debt of around $3,436.8 million, down 2.9% year over year.
Telefonica Brasil S.A. Price, Consensus and EPS Surprise
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Telefonica Brasil (VIV) Q1 Earnings Lag, Revenues Grow Y/Y
Brazilian telecom carrier Telefonica Brasil SA (VIV - Free Report) recently reported mixed financial results in the first quarter of 2017.
First-quarter net income was approximately $316.9 million, down 18.2% year over year. Earnings per ADR (American Depository Receipt) were 19 cents, a penny shy of the Zacks Consensus Estimate.
Net operating revenues were around $3,369.1 million, up 1.5% year over year.
Total operating costs in the reported quarter were approximately $2,250.9 million, up 6.5% year over year. Quarterly EBITDA (earnings before interest, tax, depreciation and amortization) was about $1,117.8 million, reflecting a decrease of 7.2% year over year. EBITDA margin was 33.2% compared with 36.6% in the prior-year quarter.
Telefonica Brasil 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. The company 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 5% year over year to approximately $1,974.8 million in the reported quarter. As of Mar 31, 2017, the company’s total mobile subscriber base touched 73.997 million (up 1% year over year). Post-paid subscriber count increased 8.2% year over year to 33.825 million, while the prepaid customer count fell 4.4% year over year to 40.171 million. In the reported quarter, the company added a net 435,000 postpaid mobile subscribers.
Fixed Line Business’ total revenue dropped 2.2% year over year to approximately $1,312.5 million. Handset revenues were $81.4 million, down 15.2% year over year.
As of Mar 31, 2017, total fixed access lines were 23.239 million, reflecting a decrease of 3% year-over-year. Fixed Broadband customers were 7.336 million, up 1.7% year over year. Fixed voice lines were 14.242 million, down 4.7% year over year. The Pay-TV subscriber base declined 7% year over year to 1.661 million.
ARPU & Churn Rate
Quarterly data ARPU (average revenue per user) was up a substantial 35.8% to about $6.11 while quarterly voice revenue per user dropped 31.1% to around $2.80. Mobile postpaid ARPU was around $16.54, up 3.8% year over year. Mobile postpaid monthly churn rate was 1.7%, compared with 1.8% in the year-ago quarter. Mobile prepaid ARPU was around $4.33, down 2.1% year over year. Prepaid monthly churn rate was 4.7% compared with 4.5% in the year-ago quarter.
Liquidity
Telefonica Brasil exited the first quarter of 2017 with a net debt of around $3,436.8 million, down 2.9% year over year.
Telefonica Brasil S.A. Price, Consensus and EPS Surprise
Telefonica Brasil S.A. Price, Consensus and EPS Surprise | Telefonica Brasil S.A. Quote
Sell These Stocks.
Now. Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>.