1Q13 Results: Telefonica Brasil S.A.

                     1Q13 Results: Telefonica Brasil S.A.

PR Newswire

SAO PAULO, May 7, 2013

SAO PAULO, May 7, 2013 /PRNewswire/ -- Telefonica Brasil - (Bovespa: VIVT3 [ON
= Common Shares] / VIVT4 [PN = Preferred Shares]; NYSE: VIV), announces its
consolidated results for the first quarter of 2013 (1Q13). The Company records
annual growth in the recurrent EBITDA for the 3^rd quarter in a roll, with
increase of 2.0% and recurrent EBITDA Margin of 33.2%.

R$ million                    1Q13      4Q12      1Q12
Net Revenue                   8,555.5   8,907.4   8,311.3
Total Operating Costs         (5,807.9) (5,054.0) (5,465.4)
EBITDA                        2,747.6   3,853.4   2,845.9
EBITDA Margin (%)             32.1%     43.3%     34.2%
Recurrent EBITDA              2,837.4   3,177.7   2,781.1
Recurrent EBITDA Margin %     33.2%     35.7%     33.5%
Net Result                    810.2     1,474.3   956.5
Number of accesses (thousand) 90,859    91,115    90,036
Mobile accesses               75,988    76,137    74,784
Fixed accesses                14,872    14,978    15,252

Total accesses reached 90.9 million in 1Q13 (+0.9% y-o-y), 76.0 million of
which was in the mobile business and 14.9 million was in the fixed-line

Postpaid accesses grew 17.4% y-o-y. 42% of the new additions of postpaid
clients in 1Q13 selected Vivo;

Increasing leadership was demonstrated in the higher revenue segments,
recording 37.1% market share in the postpaid market (+0.6 p.p. y-o-y). In the
segment of mobile data cards Vivo recorded 47.4% of market share;

Acesses base with plans and data packages recorded 17.2 million accesses
including pre and post-paid, a growth of 64% over 1Q12;

Mobile ARPU grew 3.4% y-o-y, stimulated by the 14.8% growth in Data ARPU in
the period;

Fixed voice accesses grew strongly in the corporate segment (+5.2% y-o-y);

Total Net Revenue records growth of 2.9% y-o-y in the quarter;

Net Operating Mobile Revenues recorded annual growth of 10.4% y-o-y. Net
Service Mobile Revenues maintained strong annual growth, recording a positive
variation of 7.0% compared to 1Q12;

Accelerated growth of mobile internet revenues was seen for the third quarter
in a roll, recording evolution of 22.5% y-o-y in 1Q13;

Recurring Operating Costs recorded annual growth of 3.4% in relation to 1Q12,
excluding the non-recurrent effects;

Recurrent EBITDA increased by 2.0% y-o-y with EBITDA Margin of 33.2% (-0.3
p.p. y-o-y) in the quarter.

TELEFONICA BRASIL – Investor Relations
Alberto Horcajo Aguirre
Cristiane Barretto Sales
Luis Carlos Plaster
Maria Tereza Pelicano David

Av. Luis Carlos Berrini, 1376 - 28o Andar – Cidade Moncoes – SP – 04571-936
Phone: +55 11 3430-3687 / Email: 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

SOURCE Telefonica Brasil S.A.

Website: http://www.telefonica.com.br/ir
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