TeleGeography Logo

Telefonica Brasil (Vivo) reports 15% fall in Q1 profit

8 May 2013

Telefonica Brasil, the fixed and mobile operator owned by Telefonica of Spain, has reported that net profit for the three months ended 31 March 2013 fell by 15.3% year-on-year to BRL810.2 million (USD403 million), from BRL956.5 million in 1Q12, as a rise in operational expenses and depreciation costs ate into the bottom line. The Madrid-based parent, which merged its fixed line and mobile businesses in Brazil in 2011, said that operational costs climbed 6.3% on an annualised basis to BRL5.80 billion, while depreciation charges of BRL960 million were up from BRL880 million in the year-earlier period. Consolidated net revenue only grew by 2.9% y-o-y to BRL8.55 billion though, with the mobile arm reporting a 7.0% rise to BRL5.27 billion, while turnover from fixed line phone, internet and cable TV services slumped by 8.9% to BRL2.90 billion due to ‘tougher competition’ and in particular, ‘bundled promotions’. Earnings before interest, taxes, depreciation and amortisation (EBITDA) slipped to BRL2.75 billion from BRL2.85 billion in 1Q12; EBITDA margin narrowed to 32.1% from 34.2% previously.

Telefonica (Vivo) closed out March 2013 with a total of 90.86 million customers, down from 91.11 million at 31 December 2012, but up from the roughly 90 million subscribers reported at end-March 2012.

Brazil, Telefonica Brasil (Vivo)

GlobalComms Database

Want more? Peruse the GlobalComms Database—the most complete source of intel about mobile, fixed broadband, and fixed voice markets.


TeleGeography is the definitive source for telecom news, numbers, and analysis. Explore the full research catalog.