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Telefônica Brasil, owner of Vivo (VIVT3), released results for the second quarter of 2022 (2Q22) with a profit of R$ 746 million in the period, a decrease of 44.6% in the annual comparison. The company was impacted by higher costs that minimized the results of the mobile division.
The projection of Refinitiv was that the company had profited R$ 1.145 billion in the second quarter. The projection for reported profit, considering operating and accounting effects, was R$ 1.073 billion.
Recurring earnings before interest, taxes, depreciation and amortization (EBITDA) was BRL 4.578 billion, an annual increase of 8.3% due to performance in the mobile segment, while reported EBITDA also totaled BRL 4.578 billion, down 4.4%.
The Ebitda projection was R$ 4.608 billion, compared to R$ 4.226 billion a year earlier. The projection for the reported Ebitda was R$ 4.569 billion, compared to R$ 3.099 billion a year ago.
The recurring Ebitda margin was 38.7% in 2Q22, down 1 percentage point year-on-year.
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Net revenue grew 11.1% year-on-year, or 7.6% growth excluding the effect of the Oi Móvel acquisition, driven by mobile service revenue (up 15.1% year-on-year, or growth of 9.4 % year-on-year excluding the effect of the acquisition of Oi Móvel) and handsets (up 26.4% over 2Q21).
Total fixed revenue maintained its positive performance (+1.7% y/y), with emphasis on FTTH (fiber to home) revenue, which grew 23.7% on a comparison basis.
The net financial result was negative by R$601 million in the second quarter of 2022, an increase of 282.1% compared to the same period in 2021.
According to Telefônica, the increase in financial expenses was due to the higher average indebtedness for the acquisition of 5G licenses at the end of 2021, the increase in the interest rate in the period, and the contracts recognized as leasing in accordance with IFRS16.
Total recurring costs amounted to R$7.253 billion in 2Q22, an increase of 12.9% compared to the same period in 2021.
Investments made by Telefônica totaled R$ 2.575 billion in the second quarter of 2022, which represents 21.8% of the quarter’s net revenue, an increase of 0.6 pp in the annual comparison.
On June 30, 2022, the company’s net debt was BRL 13.226 billion, an increase of 191.7% compared to the same period in 2021.
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