Telefônica Brasil S.A Results 1Q12

Transcription

1 Results 1Q12

2 Disclaimer For comparative purposes, the 1Q11 figures were prepared on a combined basis. Thus, the annual variations presented may differ from those reported in the financial statement filed with CVM through the Quarterly Information ITR form. This presentation may contain forward-looking statements concerning future prospects and objectives regarding growth of the subscriber base, a breakdown of the various services to be offered and their respective results. The exclusive purpose of such statements is to indicate how we intend to expand our business and they should therefore not be regarded as guarantees of future performance. Our actual results may differ materially from those contained in such forward-looking statements, due to a variety of factors, including Brazilian political and economic factors, the development of competitive technologies, access to the capital required to achieve those results, and the emergence of strong competition in the markets in which we operate.

3 Agenda 01 Operating Performance. 02 Financial Performance. 03 Operational Integration.

4 Operating Performance

5 01 Highlights of the Quarter Mobile Market Share Leadership expansion in all mobile customer segments Corporate Business Integration leading to enhanced performance in Large Corps and SMEs Mobile Service Revenue Continued accelerated annual growth even with MTR reduction EBITDA Margin of 34% even in the face of integration process and commercial activity during the quarter Operational Sinergy Operational integration process evolving in full force and matching planned timetable 5

6 01 In 1Q12 we continue to harvest on our superior data approach in the Mobile and Fixed Space. Our absolute leadership in 3G Coverage and quality Vivo Claro Tim Oi Dec/10 Dec/11 Mar/12 Source: Teleco. is driving data adoption in the smartphone An established and solid infrastructure for UBB MM homes 6,000 KM of passed in UBB in wealthiest regions of SP fiber in the FTTH solution with a superior solution delivering top edge experience x4 1Q11 1Q12 Customers with internet packages > 10 x in Mbps FTTN FTTH and attracting largest majority of the datacard market. 40% 42% 43% 43% 43% 44% 38% 34% 36% 49% data market share of net additions in is accelerating adoption for premium customers. 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 1Q11 1Q12 Data Market Share 1Q12 UBB Customer Base x 4 Majority of 1Q12 net adds in FTTH solution 6

7 01 Growth in accesses during the quarter shows the attractiveness of our data and voice offers. Accesses* Million Net Additions Thousand ,11 62,1 16.7% 37% 3.7% ,3 15,3 71,6 74,8 YoY 1.3% 20.5% +83% 1, , Fixed Voice Fixed Broadband Mobile Postpaid Pay TV Mobile Fixed** (120) (97) 1Q11 (16) 1Q12 Mobile Prepaid Source: Anatel. *Considers 150 thousand TVA customers consolidated in June 2011 **Includes fixed voice, fixed broadband and pay TV. 7

8 01 In the mobile business, Telefônica Brazil increased its leadership in all customer segments Mobile Accesses Million Mobile Market Share % 20.5% 4.5% ,11 16,66 13,3 48,7 55,4 58,2 Prepaid Postpaid YoY 24.8% 19.3% Source: Anatel. 41,7% 43,8% 35,5% 36,5% 29,5% 29,8% 1Q11 1Q12 Blended Postpaid Broadband -5.9% ,4 64 6,4 6,0 ARPU R$ Harvesting Prepaid Growth -8.9% 18,4 18,2 16,4 YoY 11.6% -11.1% 17% 13% 12% 16% 7% 10% Voice Data Δ% prepaid customers - YoY Δ% of recharge - YoY 23% 19% 2Q11 3Q11 4Q11 1Q12 8

9 01 In the fixed business, fiber adoption and corporate business performance are the quarter highlights g Voice and Fixed Broadband Accesses Million Fiber to the Home Net Additions Thousand 01% 0.1% -0.3% YoY ,4 36 3,6 37 3,7 47 4,7 5,0 9.1% 9,2 20,6 20,4 11,2 11,0 10,9-2.6% 1Q11 2Q11 3Q11 4Q11 1Q12 Fixed Accesses Fixed Broadband Fixed Broadband accesses over Fixed Voice accesses Negocios 28% 29% 30% 31% 32% 25% 26% Corporate* access evolution Thousand 33% 34% % 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 1Q11 1Q12 * Includes mobile and fixed accesses. 9

10 01 Strong financial results even considering the integration process and strong commercial activity. R$ million 1Q12 1Q11 Δ% YoY Net Operating Revenue 8, , % Total Net Operating Service Revenue 8, , % Wireless Service Revenue 4, , % Wireline Service Revenue 3, , % Net Handset Revenue % Negocios EBITDA 2, , % EBITDA Margin 34.2% 35.4% -1.2 p.p. Net Result , % 10

11 Financial Performance

12 02 Mobile net revenue maintained accelerated growth even in the face of MTR reductions in the quarter Mobile Net Service Revenue R$ Million 12.8% -3.4% Mobile Net Service Revenue % YoY YoY 33.9% -5.0% 4, ,097 4, % 59.2% 56.6% 59.3% 13.8% 11.9% ,3% 12,0% 13,9% 12,8% Access and Usage 29.4% 33.0% 33.3% Network Usage % Data/Mobile Outgoing Revenue Data and VAS In order to simplify the analysis the chart does not include Other Revenues. 2Q11 3Q11 4Q11 1Q12 MTR impact %Mobile Service Rev./Total Revenue YoY growth excluding MTR impact 12

13 02 Data and VAS revenue continue to be the main driver of revenue growth and already accounts for around 27% of net service revenue Data and VAS Revenue R$ Million % Data/Mobile Net Service Revenue 26,8% 25,7% 26.2% 33.9% 25,0% -1.2% 22,5% YoY 984 1,334 1, Q11 2Q11 3Q11 4Q11 1Q % Customers with internet packages 24.7% X 39.1% Messaging P2P Internet Other 1Q11 1Q12 13

14 02 Corporate business responds for 48% of the wireline net revenue Wireline Net Revenue R$ Million -4.1% Regulatory impact of 0.7 p.p. yoy -3.9% Revenue Mix per Business 1Q12 YoY 17.7% 14.7% 3,346 3,340 3,209 47,7% 52,3% % Q % 32.0% 32.7% 46,3% 53,7% Voice* Data and Pay TV Others % Data and Pay TV/Wireline net revenue Individual Corporate *Includes voice, accesses and network usage. 14

15 02 Consolidated expenses increased by 5.6% yoy, affected by non recurrent events and higher commercial activity in the quarter R$ Million YoY 31.9% 6.8% -10.7% 10.3% 21.9% n.a. 5.6% (5.178) (173) (170) 51 (148) (48) 198 (5.467) 1Q11 Personnel Services Goods Sold Selling G&A Others 1Q12 Rendered Expenses Non recurring events Restructuring - R$130.2 Brand Non strategic assets - R$ R$

16 02 1Q12 recurrent EBITDA reaches R$2,8 billion and adjusted margin of 33.5% R$ Million Adjusted EBITDA EBITDA 34,1% 34,0% 33.5% 35,4% 38,5% ,2% 3Q11 4Q11 1Q Recurrent EBITDA Adjusted Margin EBITDA EBITDA Margin sale of non strategic assets in the amount of R$216.5 million in the 1Q12 and R$380.1 million in the 4Q11; non recurrent integration costs in the amount of R$151.7 million in the quarter; 16

17 02 1Q12 EBIT reaches R$1.5 billion and net result of R$1 billion R$ Million EBIT Financial Result (12) (63) (94) Net Result Net Result Build-up 1, % 1, % (234) (51) Q11 EBITDA D&A Financial Result Taxes 1Q12 17

18 02 Higher capex execution in the quarter focused on network expansion, integration and quality R$ Million Gross Debt Capex -3.9% -4.4% 6,169 6,204 5,928 14,3% 71% 77% 76% 29% 23% 24% 92% 9,2% Short Term Long Term Q11 1Q12 % Capex*/Net Operating Revenue Net Debt 34.2% -16.0%

19 Operational Integration

20 01 We have been keeping our top quality positioning in the mobile and have strengthened the fixed. Mobile Attendance Index - IDA 99, ,9 84,8 Fixed Complaints volume in Anatel - 30% -23% - 21% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Vivo TIM Claro Oi Source: Teleco. Mobile Anatel Complaints Ranking Best IDA in 36 of the last 37 months Anatel STFC Anatel ADSL Anatel TV Mar/11 Mar/12 1Q11 2Q11 3Q11 4Q11 Oi TIM Claro Vivo Source: Teleco. *Foundation for the Consumer Protection. 0,51 0,42 0,33 0,26 Clear position as less complained company 20 Procon*: Passed from 1 st to 6 th position in the 2011 ranking

21 02 With improved quality and solid processes we could rebrand our fixed services and restructure our organization, executing and delivering the original plan. REBRANDING PERSONNEL Impact in the quarter R$ 21,5 million Main future benefits Stores selling mobile and fixed products; Convergent customer experience; Improved perception on quality and Unified culture; Future savings in communication; R$130,2 million More agile, simplified and convergent structure; Future savings in personnel; 21

22 01 As an integrated company we also move forward on our convergent approach, especially for the corporate customer. Infrastructure - Use of Mobile Infrastructure (HSPA, Fiber and Radio) outside São Paulo to provide corporate services (VPN IP, IP Internet and Metrolan) with better prices and lower opex. Channels - Convergent commercial process and integrated direct and indirect channels (sales force, back office, pre and post sales teams), leveraging satisfaction and sales. New Services - Vivo Cloud Plus: New IT (IaaS) services for Large Corps using the Vivo brand. Results After the integration, level of gross adds went up 44% for complete solutions*, 34% for mobile and 157% for machine to machine. * Complete solutions include mobile+datacard+m2m 22

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