SÃO PAULO, July 27, 2021 /PRNewswire/ -- Telefônica Brasil - ((B3: VIVT3, NYSE:VIV), announces its results for 2Q21.

Revenue acceleration driven by positive evolution of mobile and fiber accesses, combined with net profit growing 20.9%

*R$ million*	2Q21	% y-o-y

Net Operating Revenues	10,649	3.2
Core Revenue	9,453	8.2
Mobile Revenue	6,990	5.6
Fixed Core Revenue	2,462	16.4
Non-Core Revenue	1,197	(24.4)
Total Costs	(6,423)	3.4
Recurring Total Costs	(5,860)	(5.7)
Recurring EBITDA	4,226	3.0
Recurring EBITDA Margin	39.7%	(0.1) p.p.
Reported EBITDA	4,789	16.7
Reported EBITDA Margin %	45.0%	5.2 p.p.
Net Income	1,345	20.9

Capex \| Ex- IFRS 16	2,251	17.9
Free Cash Flow after Lease Payments	1,868	(32.6)

Total Subscribers (thousand)	96,721	5.1
Core Subscribers	87,197	8.7
Non-Core Subscribers	9,524	(19.0)

Mobile market share reached 33.0% in April 2021[1], reaffirming Vivo's leadership in the mobile business. Postpaid accesses grew 8.7% y-o-y and accounted for 58.2% of total mobile accesses, with a market share of 36.9% in April 2021¹.

Fiber-to-the-home broadband customers totaled 4 million (+41.3% y-o-y), posting strong net additions in 2Q21. FTTH Revenues increased 49.7% versus 2Q20, reaching R$1,062 million.

Net revenues grew +3.2% y-o-y due to a portfolio of unmatched quality and service. Core businesses continues to increase its relevance, as it already represents 89% of total revenues. Core fixed revenues continue to grow significantly (+14.3% y-o-y) while mobile revenues are showing solid recovery once again (+5.6% y-o-y).

Total Costs went +3.4% up in 2Q21, as cost base is evolving with the sale of handsets and digital services, offsetting this quarter cost reductions based on digitalization and simplification initiatives.

Recurring EBITDA totaled R$4,226 million (+3.0% y-o-y) in 2Q21, with a recurring EBITDA margin of 39.7%.

Investments of R$2,251 million in 2Q21, focused on the expansion of the FTTH network and the capacity of the 4G and 4.5G networks.

Net income equaled R$1,345 million, (+20.9% y-o-y) with improved operating performance. Shareholder remuneration declared until June-21 reached R$1,330 million, representing a dividend yield of 7.7%.

Free Cash Flow after Leasing payments totaled R$1,868 million in 2Q21, reflecting the ongoing, efficient Company's financial management.

TELEFÔNICA BRASIL – Investor Relations

Christian Gebara

David Melcon

Luis Plaster

João Pedro Carneiro

+55 11 3430-3687 / ir.br@telefonica.com

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

¹ Most recent market share data published by Anatel with information of all large carriers.

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SOURCE Telefônica Brasil S.A.

2Q21 Results: Telefônica Brasil S.A.