131106 - Apresentação 3Q13 - eng v2static.telefonica.aatb.com.br/Arquivos/Download/... · 1Q13...
Transcript of 131106 - Apresentação 3Q13 - eng v2static.telefonica.aatb.com.br/Arquivos/Download/... · 1Q13...
Results 3Q13
November, 2013.
2Investor RelationsTelefônica Brasil S.A.
Highlights of the quarter
Operational Financial
Fixed
Mobile
We keep improving in all fronts, guaranteeing strong net additions for the second consecutive quarter, mainly in voice and pay TV.
Stronger acquisition of postpaid capturing 64.5% of net adds in the 3Q13 and the great adoption of data services in the period driving
high outgoing ARPU growth.
-93
1360
1Q13 2Q13 3Q13
-86
118 157
1Q13 2Q13 3Q13
7%9%
12%
1Q13 2Q12 3Q13
17.221.5 24.1
1Q13 2Q13 3Q131Q13 2Q13 3Q13
Outgoing ARPUy-o-y
Mobile data users ** Data cards/packages/M2M
Postpaid net adds *
The consistency of these improvements and cross selling efforts were both reflected in higher revenue per access…
0.7%1.2%
1.5%
1Q13 2Q13 3Q13
Net Operating Service Revenue - yoy
Net Operating Service Revenue per access - R$
29.7 29.930.2
3Q12 2Q13 3Q13
+0.8pp
+2%
… resulting in total service revenue acceleration.
-13
2151
1Q13 2Q13 3Q13
7161,167
1,453
* Thousand.
Pay TV *(excludes MMDS)
Voice *Total net adds *
** Million.
01Operating Performance
4Investor RelationsTelefônica Brasil S.A.
Our access evolution reflects the solid performance in total fixed accesses and strong growth in mobile postpaid
AccessesMillion
1 Includes fixed voice, fixed broadband and pay TV.2 Includes pre and postpaid customers.Source: ANATEL.
01
Mobile AccessesMillion
Fixed AccessesMillion
76.8 76.2 76.6
15.1 14.9 15.1
3Q12 2Q13 3Q13
Mobile Fixed1
-0.2%
+0.1%
YoY91.9 91.1 91.7
-0.2%
+0.6%
2
10.7 10.6 10.6
3.8 3.8 3.90.6 0.5 0.6
3Q12 2Q13 3Q13
Fixed Voice Fixed Broadband PayTV
-0.8%
+3.4%
-5.0%
YoY+0.1%
+1.1%15.1 14.9 15.1
58.9 55.5 54.5
18.0 20.7 22.1
3Q12 2Q13 3Q13Prepaid Postpaid
-7.4%
+23.3%
YoY-0.2%
76.8 76.2 76.6
+0.5%
5Investor RelationsTelefônica Brasil S.A.
We continue to execute successfully our strategy with a segmented approach in São Paulo,…
01
Areas with copper (countryside of
SP State)
… improving the mix of BB speeds (>4Mbps).
… reflected on the evolution of FBB churn.
Accelerating DTH sales with focus on loyalty…
3Q12 3Q13
-0.3pp
Integrated offersMobile + Fixed
FWT solution achieves a significant growth of net adds
Postpaid customers with fixed integrated offers
jan/13 sep/13
5x
BB net adds above 4Mbps
DTH net adds BB churn
2Q13 3Q13
1.4x
2Q13 3Q13
5x
2Q13 3Q13
4x
1Q13 2Q13 3Q13
Areas with fiber and cable(SP city)
Accelerating FTTH adoption,…
2.1x
FTTH BB and IPTV net adds
5.0x
6Investor RelationsTelefônica Brasil S.A.
… intensified by increasingly integrated offers, ...01
CONVERGENCE JOURNEY NEW CONVERGENT OFFER
• Soft launch in Oct, 31st
• Complete portfolio to attend needs in each customer segment of São Paulo State
• Evolution for a unique customer experience: sales, installation, customer care, billing and retention
2012Sale of fixed
services through mobile
channels
Intensification of FWT and Vivo Box out of São Paulo to capture the demand for
fixed services
Crossed discounts and advantages for fixed and
mobile services
OCT/13New
convergent offers including
all services
MultiVivo Total 1 MultiVivo Total 4 MultiVivo Total 10 MultiVivo Total 25 MultiVivo Total 100
Unlimited Local F-F/F-M
1Mbps
Controle: unlimited local M-M, unlimited SMS
Unlimited Local F-F/F-M
4Mbps
Controle: unlimited local M-M, unlimited SMS,
250MB
Unlimited Local F-F/F-M
10Mbps
Unlimited 3GPlus: unlimited local M-M,
unlimited SMS, 60 off-net minutes,1GB
Unlimited Local F-F/F-M
25Mbps
Unlimited 3GPlus: unlimited local M-M,
unlimited SMS, 100 off-net minutes, 2GB
Fit HD: 34 HD channels
Unlimited Local F-F/F-M
100Mbps
Unlimited 4GPlus: unlimited M-M, unlimited
SMS, 100 off-net minutes, 4GB
Fit HD: 33 HD channels
7Investor RelationsTelefônica Brasil S.A.
… resulting once again in positive access evolution across all fixed services.
01
Strong performance in net adds… … in all fixed services.
Excludes MMDS
2nd
consecutive quarter with
net adds
Selective adds with
higher ARPU and speeds
Great adoption of
DTH and IPTV
ExcludesMMDS
-41
-99 -86
118
157
3Q12 4Q12 1Q13 2Q13 3Q13
-57 -68-93
1360
3Q12 4Q12 1Q13 2Q13 3Q13
37
-21
20
84
46
3Q12 4Q12 1Q13 2Q13 3Q13
-22-10 -13
21
51
3Q12 4Q12 1Q13 2Q13 3Q13
8Investor RelationsTelefônica Brasil S.A.
In the mobile, we accelerated net adds in postpaid, resulting in strong leadership in higher revenue segments
01
Share of postpaid net adds
Market share - postpaid ex-M2M Market share - dongles
Postpaid net adds
Vivo
Player 2Player 3
Player 4
In the 3Q13, Vivo
captured 64.5% of
the market in
postpaid net
additions.
Mix of postpaid accesses
777 848 716
1,1671,453
3Q12 4Q12 1Q13 2Q13 3Q13
23.4% 24.7% 25.7% 27.1% 28.9%Não é possível exibir esta imagem no momento.
Não é possível exibir esta imagem no
Não é possível exibir esta imagem no momento.
Não é possível exibir esta imagem no momento.
Vivo
Player 2
Player 3Player 4
43.6%37.9% 41.2%
58.2%64.5%
3Q12 4Q12 1Q13 2Q13 3Q13
41.0%
21.1%
21.9%
15.0%
3Q12 4Q12 1Q13 2Q13 3Q13
49.6%
28.1%
10.0%
9.7%
3Q12 4Q12 1Q13 2Q13 3Q13
9Investor RelationsTelefônica Brasil S.A.
We are driving smartphone penetration and enhancing adoption of data services specially in 3GPlus and 4G plans…
01
Smartphone accesses with 3G Plus plans
Mobile data users and data trafficSmartphone accesses with 4G plansLaunched in April, 2013
Smartphones penetration*
63%71% 75%
3Q12 2Q13 3Q13Individual postpaid
+11 p.p. +15 p.p.
27%38% 42%
3Q12 2Q13 3Q13
Individual prepaid
11.8%
22.2%
QoQ
dec/12 mar/13 jun/13 sep/13
2.2x
jun/13 jul/13 aug/13 sep/13
4x
Improved ARPU with technology evolution
17.2 21.5 24.1
1Q13 2Q13 3Q13
Data access Data Traffic*
* Data cards, Data packages and M2M.
*
* Individuals.
*
* Individuals.
* Web and smartphones.
10Investor RelationsTelefônica Brasil S.A.
… accelerating ARPU growth. Selective commercial strategy is reducing acquisition costs and bad debt.
ARPUR$
Outgoing ARPU y-o-y
01
SACR$
Mobile Bad Debty-o-y
-4.6%
YoY
16.0 16.0
6.2 7.7
22.2 23.6
3Q12 3Q13Voice Data
-0.2%
+24.0%
YoY+6.6%
1.4% 1.3%1.1%
1Q13 2Q13 3Q13
Bad Debt / Mobile Gross Revenues
-3.8%1.5%
7.1%9.3%
11.8%
3Q12 4Q12 1Q13 2Q13 3Q13
Evolution without the 2013 MTR reduction
+8.6%
51.2 48.9
3Q12 3Q13
11Investor RelationsTelefônica Brasil S.A.
Corporate segment continues to sustain superior performance driven by cross selling and expansion out of São Paulo
01
3Q12 3Q13
3.1x
3Q12 3Q133Q12 3Q13
1.5x
3Q12 3Q13
2.0x
Fixed UBB accessesPortfolio simplification
Fixed voice accessesConsistent growth
FWT gross adds out of SPAmplifying sales channels
+4.0%
M2M Base doubled in 1 year
… and we highlight the extension of fiber optic netw ork out of São Paulo State.
In corporate we continue to outperform in core serv ices…
Rio de Janeiro
Salvador
Recife
Curitiba
Porto Alegre
Brasília
Belo Horizonte
Continuity of our strategic plan to leverage our participation
outside of São Paulo, ensuring the quality of data services to
corporate customers
7 cities delivered in 2013 and we are working to achieve 14 more cities in 2014
12Investor RelationsTelefônica Brasil S.A.
01 We continue to create innovative solutions in new areas to expand revenues in digital services
ZUUM enables the realization of payments and transfersfrom a prepaid account
Send or receive money safely as ZUUM uses the USSD network
combined with a chosen password
Registrations can be done through any handset even
without mobile internet access
Anytime top ups, more spending control by checking the balance and recent transactions straight
from the handset
We continue to outperform in innovative services in many different segments.
In May/13, we started to offer to our clients, a pr epaid account solution to capture the potential gro wth in financial services for the unbanked population.
In Brazil, 36% of economically active population does not have a b ank account.
13Investor RelationsTelefônica Brasil S.A.
Commercial performance is driving stronger service revenues but costs for growth continue to weigh on margins in the short term
01
3Q13
8,618.2
8,317.7
5,438.7
2,879.0
300.5
2,381.3
27.6%
2,381.3
27.6%
760.2
∆% YoY
1.9
1.5
7.1
-7.7
14.4
-18.2
-6.8 p.p.
-17.1
-6.3 p.p.
-18.8
9M13
25,665.2
24,677.8
15,928.4
8,749.4
987.5
7,704.4
30.0%
7,714.6
30.1%
2,484.6
R$ million
Net Operating Revenue
Net Handset Revenue
EBITDA
EBITDA Margin
Net Result
Wireless Service Revenue
Net Operating Service Revenue
Wireline Service Revenue
Recurrent EBITDA
Recurrent EBITDA Margin
∆% YoY
2.6
61.2
-12.9
-5.4 p.p.
-16.6
6.5
1.1
-7.3
-8.0
-3.5 p.p.
14Investor RelationsTelefônica Brasil S.A.
01
FTTH footprint DTH and IPTV offers
Best coverage and absolute leadership in postpaid and
data
Best positioned to capture the
market growth in all
fronts
UBB PayTV Mobile
Benchmark in customer care
Best infrastructure and coverage
Excellence in ITBest brand perception
We are prepared to capture the potential growth in different fronts to keep leading value generation
With the launch of new services, we expect to keep leading value generation the long term sustaining our competitive advantages:
Innovative services
Strategic partnerships and a global division to
address opportunities
1st brand for the 6 th
consecutive year
02Financial Performance
16Investor RelationsTelefônica Brasil S.A.
Mobile Net Service RevenueR$ Million
Mobile Service Revenue accelerates achieving annual growth of 9.1% in 3Q13 by excluding the additional 2013 MTR impact
Mobile Net Service Revenue Excluding MTR effect
02
2013 MTR reduction impact
In order to simplify the analysis the chart does no t include ‘Other Revenues’.
Network UsageAccess and Usage Data and VAS
5.4%
YoY
Evolution without the 2013 MTR reduction
2,717 2,726 2,864
936 780 787
1,414 1,685 1,762
3Q12 2Q13 3Q13
-16.0%
24.6%
5,078 5,219 5,439
7.1%
4.2%5,271 5,311
5,540
1Q13 2Q13 3Q13
4.3%4.3%0.8%
9.1%
17Investor RelationsTelefônica Brasil S.A.
Data and value added service revenues continue to show strong evolution, driven by mobile internet growth during the 3Q13
Data and VAS RevenueR$ Million
02
Internet Revenue Annual Growth
InternetMessaging P2P VAS
% over Mobile Net
Service Revenue
+19 p.p.
482 488 506
705915 956
227282 300
3Q12 2Q13 3Q13
5.0%
35.5%
32.5%
YoY1,414
24.6%
4.6%
1,6851,762
27.8% 32.3% 32.4%
16.4%
35.5%
3Q12 3Q13
18Investor RelationsTelefônica Brasil S.A.
Fixed revenues continue to present positive trends in the year02
Wireline Net RevenueR$ Million
Year-to-date Wireline Net Revenuey-o-y
Data and Pay TVVoice* Others
-10.7%
-0.3%
-16.0%
36.9% 34.8% 33.4%% over Net Operating
Revenue
-1.9%
0.3%
-17.2%
Evolution without the 2013 MTR reduction
* Includes voice, accesses and network usage.
1,841 1,675 1,643
1,031 1,025 1,028
248 252 208
3Q12 2Q13 3Q13
YoY3,120 2,951 2,879
QoQ
-2.4%
-7.7%
-7.9%-7.3%
9M12 9M13
-0.6 p.p.
-6.6%
-2.4%
19Investor RelationsTelefônica Brasil S.A.
02
Adjusted EBITDA MarginR$ Million
� Capturing synergies with restructuring
� Growth below inflation
� Increased postpaid base
� Data adoption � Fixed turnaround
� Increased provisions for contingencies inherent to the
business, specially labor
Personnel + G&A Subsidies + Selling Expenses
Others
8,383
7,715
278 -80 -623
-159 -84
RecurrentEBITDA 9M12
Net OperatingService
Revenues
Personnel +G&A
Subsidies +Selling
Expenses
ServicesRendered
Others RecurrentEBITDA 9M13
33.5% +1.4 p.p. -0.4 p.p. -3.2 p.p. -0.8 p.p. -0.4 p.p. 30.1%
Margins affected in the short term by costs associated to higher commercial activity and quality focus, with control in Personnel and G&A
-1.5 p.p. +1.1% +3.2% +11.6% +2.0% +34.1% -3.5 p.p.
Impact in Recurrent
EBITDA Margin
y-o-y evolution
� Increased net maintenance
focused on quality� Expansion out of
São Paulo� Higher TV content
costs
Services Rendered
20Investor RelationsTelefônica Brasil S.A.
02
Net Profit (excluding non recurrent EBITDA events - R$ Million)
� Acceleration of the MMDS
depreciation
� Evolution of financial revenues
associated with financial
investments
� Benefited by societary events
and IOC
Recurrent EBITDA D&A Others Taxes Adjusted
Net profit evolution is favored by the societary consolidation
2,978
2,485
-315-668
-159 30
618
9M12 Non recurrentevents after
associated taxes
RecurrentEBITDA
D&A Others Taxes excludingnon recurrent
events
9M13
9M13 9M12 YoY
Non recurrent events 10 -467 477
Sale of non strategic assets -80 -439 359
Organizational restructuring 90 130 -40
Rebranding 0 86 -86
Reversal of provision 0 -244 244
Taxes associated (34%) -3 159 -162
Taxes ex non recurrent events 7 -308 315
21Investor RelationsTelefônica Brasil S.A.
Solid cash flow and balance sheet once again evident
CapexR$ million
02
Net DebtR$ million
Operating Cash FlowR$ million
6,649 6,813
9M12 9M13
2.5%
Financial ResultR$ million
1,096
548
-259
3Q12 2Q13 3Q13
-166-131
9M12 9M13
-21%
3,271 3,377
451
13.1% 13.2%
9M12 9M13Spectrum upgradeCapex% Capex Adj / Net Operating Revenue
22Investor RelationsTelefônica Brasil S.A.
In conclusion
� We accelerated net adds in postpaid, resulting in a stronger leadership in higher revenue segments and an increased adoption of data plans, specially in 3GPlus and 4G, sustained by the higher smartphone penetration
� We continue to execute successfully our strategy with a segmented approach in São Paulo, intensified by increasingly integrated offers, resulting once again in positive access evolution across all fixed services
� Fixed Revenue continue to present positive trends in the year
� Mobile Service Revenue accelerates annual growth even excluding the MTR impact, driven by the strong evolution of Data and VAS revenues
Fixed
Mobile
FIN
AN
CIA
L
Revenues
Margin
OP
ER
ATIO
NA
L
� EBITDA Margin affected in the short term by costs to support higher commercial activity and therefore capture future value growth. Always with a quality focus, which is the driving force behind our strategy
23Investor RelationsTelefônica Brasil S.A.
Disclaimer
This presentation may contain forward-looking statements concerning future prospects and objectives regarding growth of the subscriber base, a breakdown of the various services to be offered and their respective results. The exclusive purpose of such statements is to indicate how we intend to expand our business and they should therefore not be regarded as guarantees of future performance.
Our actual results may differ materially from those contained in such forward-looking statements, due to a variety of factors, including Brazilian political and economic factors, the development of competitive technologies, access to the capital required to achieve those results, and the emergence of strong competition in the markets in which we operate.
24Investor RelationsTelefônica Brasil S.A.