Telefonica Brasil's net profit rises 42% in fourth quarter with post-paid business (updated)

America Movil SAB de CV

20/02/2024 22:04

(Adds details in paragraphs 2-6)
       SAO PAULO, Feb 20 (Reuters) - Brazilian
telecommunications operator Telefonica Brasil  VIVT3.SA  posted
on Tuesday a 42.1% increase in fourth quarter net profit from a
year earlier, helped by an increase in revenues in post-paid
operations. 
    The firm, which is controlled by Spain's Telefonica
 TEF.MC , posted a 1.60 billion reais ($324.7 million) net
profit for the quarter ended in December. By comparison,
analysts polled by LSEG expected a 1.41 billion reais net profit
for the period.
    The company's net operational revenue rose 6.9% in the
quarter year-on-year to 13.5 billion reais, as its main mobile
services business saw an over 8% increase in revenues, boosted
by post-paid operations.
    The results come after rival TIM Brasil  TIMS3.SA  posted 
results earlier this month, which sell-side analysts underscored
were strong. 
    Brazilian telecommunications firms are seeing good momentum,
analysts say, boosted by sequential price hikes and recent
mobile assets acquisitions. 
    Telefonica Brasil's earnings before interest, taxes,
depreciation and amortization (EBITDA) stood at 5.75 billion
reais for the quarter, up almost 10% from a year earlier.
Analysts had expected EBITDA of 5.68 billion reais.
    EBITDA margin rose 1.1 percentage points year-on-year to
42.5% in the quarter.
    ($1 = 4.9275 reais)

 (Reporting by Andre Romani; Editing by Steven Grattan and
Anthony Esposito)
 ((Andre.Romani@thomsonreuters.com; 11 991314109;11 56447500;))