SÃO PAULO, May 10, 2022 /PRNewswire/ -- Telefônica Brasil - ((B3: VIVT3, NYSE:VIV), announces its results for 1Q22.

Highest net revenue growth in 7 years, led by a historic mark of 100 million total accesses.

*R$ million*	1Q22	1Q21	% YoY

Net Operating Revenues	11,352	10,849	4.6
Core Revenue	10,285	9,563	7.5
Mobile Revenue	7,581	7,147	6.1
Fixed Core Revenue	2,704	2,416	11.9
Non-Core Revenue	1,067	1,286	(17.0)
Total Costs	(6,840)	(6,394)	7.0
EBITDA	4,511	4,455	1.3
EBITDA Margin	39.7%	41.1%	(1.3) p.p.
Net Income	750	942	(20.4)

Capex \| Ex- IFRS 16	1,880	1,943	(3.3)
Operating Cash Flow (OpCF)	2,631	2,511	4.8
OpCF/Net Revenue Margin	23.2%	23.1%	0.1
Free Cash Flow after Lease Payments	2,477	2,199	12.6

Total Subscribers (thousand)	99,942	95,809	4.3
Core Subscribers	91,833	85,816	7.0
Non-Core Subscribers	8,109	9,993	(18.8)

Mobile Service Revenue grew 5.7% YoY led by Postpaid Revenue which increased 5.9% on a yearly comparison. Revenue expansion was driven by 1.3 million new customers in the postpaid segment during the last quarter.

Total accesses reached 100 million accesses, +4.1 million compared to 1Q21. Core services subscribers account now for 91.9% of all accesses, a 2.3 p.p. YoY increase.

Vivo reached 4.8 million (+29.1% YoY) homes connected with FTTH. Currently, Vivo's FTTH coverage is available in 341 cities (+14 cities in 1Q22), with 20.5 million homes passed.

Net revenue increased +4.6% YoY, registering Vivo's largest revenue growth in 7 years, with an astonishing representativeness of the core businesses which now accounts for 90.6% (+2.5 p.p.) of total revenues. Core fixed revenue was boosted by the 25.9% YoY increase of FTTH revenues, and core mobile revenue saw a robust increase in handset revenue (+10.0% YoY) and the 5.9% growth in postpaid service.

Total Costs grew 7.0% YoY, while the inflation had an increase of 11.3%. The change in the cost mix is related to the strong revenue growth in handset and digital services.

EBITDA totaled R$4,511 million (+1.3% YoY) in 1Q22, with an EBITDA margin of 39.7%.

In 1Q22, we bought back R$ 115 million in shares with the new Share Buyback Program that will last until Feb-23. In the last 12 months, the Company registered 113% in dividend payout, and a 7.6% dividend yield.

Free Cash Flow after Leasing payments reached R$ 2.5 billion this quarter (+12.6% YoY).

In April 2022, Telefônica Brasil concluded the acquisition of Oi's mobile assets with potential synergies of R$ 5.4 billion. Synergies will come from the optimization of operation costs and efficient allocation of investments due to the integration of incorporated assets, thus benefiting the Brazilian telecommunications sector and reinforcing Vivo's mobile leadership.

To download the complete version of the Company's earnings release, please visit our website: http://www.telefonica.com.br/ir

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SOURCE Telefônica Brasil

1Q22 Results: Telefônica Brasil S.A.