Telefonica Brasil Impresses in 4Q - Analyst Blog
Brazilian telecom carrier
Telefonica Brasil SA (VIV) reported fourth-quarter
2012 net income of R$1,474.3 million ($715.2 million), up by a
marginal 0.8% year over year.
Revenue rose 3.6% year over year to R$8,910.3 million ($4,322.4
million), surpassing the Zacks Consensus Estimate of $4,125.0
million.
For 2012, net income was R$4,452.2 million or $2,159.8 million
(down 12.2% from the prior year), on revenues of R$33,931.4 million
or $16,460.1 million (up 2.3% year over year).
Consolidated EBITDA jumped 16.5% year over year to R$3,854.0
million ($1,869.6 million) in the fourth quarter, with EBITDA
margin standing at 43.3% was up 480 basis points (bps). Operating
expenses dropped 4.5% year over year to R$5,056.3 million ($2,452.8
million).
Revenue Segments
Mobile Business revenue climbed 10.7%
year over year to R$5,823.2 million ($2,824.8 million) in the
reported quarter, primarily driven by data and value added service
(VAS), and access and usage revenues.
Average revenue per user (ARPU) fell 2.8% to R$23.9 ($10.8), hurt
by a drop in interconnection rates. Customer churn upped to 4.1%
from 3.0% recorded in the fourth quarter 2011.
As of Dec 31, 2012, total subscriber base was 76.14 million (up
6.4% year over year). Post-paid and prepaid subscribers grew 16.7%
and 3.4% year over year to 18.80 million and 57.33 million,
respectively.
Fixed Line Business revenue plunged 7.6%
year over year to R$3,087.2 million ($1,497.6 million). Pay TV
performed the worst with revenue decline of 18.4%, followed by a
12.7% reduction in fixed voice and access. On the other hand,
interconnection revenue registered an increase of 16.1%.
At the end of 2012, total fixed access lines reached 14.98 million,
reflecting a 2.2% year-over-year decrease. Fixed Broadband
customers stood at 3.73 million compared with 3.63 million a year
ago. The Pay TV subscriber base dropped 14.2% year over year
to 600,000 customers, while subscriber base at fixed voice segment
was 10.65 million, down 3.1% year over year.
Liquidity
Telefonica Brasil – a subsidiary of Telefonica SA
(TEF) – exited 2012 with cash and cash equivalents of R$7,196.1
million ($3,490.8 million) compared with R$2,940.3 million
($1,426.3 million) in the year-ago quarter. Net debt decreased to
R$439.9 million ($213.4 million) from R$3,165.4 million ($1,535.5
million) in 2011. Net debt-to-EBITDA ratio improved to 0.03 times
from 0.26 times in last year.
During 2012, the company incurred capital expenditure of R$6,117.1
million ($2,967.4 million) as against R$5,741.2 million ($2,785.1
million) in 2011.
Our Take
Telefonica Brasil currently holds a Zacks Rank #3 (Hold). We
believe that Telefonica Brasil displays long-term opportunities for
both fixed-line and mobile businesses, leading to better revenue in
the coming quarters. Broadening the subscriber base along with
investments in improving the network activity will also aid in the
company’s profitability.
Other Stocks
Other foreign companies that are expected to perform well in the
coming days are France T (FTE) and
Hawaiian Telcom Holdco Inc. (HCOM). Both the
stocks hold Zacks Rank #2 (Buy).
FRANCE TELE-ADR (FTE): Free Stock Analysis Report
HAWAIIAN TELCOM (HCOM): Free Stock Analysis Report
TELEFONICA S.A. (TEF): Free Stock Analysis Report
TELEF BRASIL SA (VIV): Free Stock Analysis Report
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Hawaiian Telcom Holdco, Inc. (delisted) (NASDAQ:HCOM)
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から 6 2024 まで 7 2024
Hawaiian Telcom Holdco, Inc. (delisted) (NASDAQ:HCOM)
過去 株価チャート
から 7 2023 まで 7 2024