2Q13 Results: Telefonica Brasil S.A.

                     2Q13 Results: Telefonica Brasil S.A.

PR Newswire

SAO PAULO, July 24, 2013

SAO PAULO, July 24, 2013 /PRNewswire/ -- Telefonica Brasil - (Bovespa: VIVT3
[ON = Common Shares] / VIVT4 [PN = Preferred Shares]; NYSE: VIV), announces
its consolidated results for the second quarter of 2013 (2Q13). The Company
consolidates its leadership in the mobile business in 2Q13 and confirms
positive operating and financial trends in the fixed-line business.

R$ million                    2Q13      1Q13      2Q12
Net Revenue                   8,491.5   8,555.5   8,240.4
Total Operating Costs         (5,916.0) (5,807.9) (5,149.0)
EBITDA                        2,575.5   2,747.6   3,091.4
EBITDA Margin (%)             30.3%     32.1%     37.5%
Recurrent EBITDA              2,495.9   2,837.4   2,729.8
Recurrent EBITDA Margin %     29.4%     33.2%     33.1%
Net Result                    914.2     810.2     1,085.6
Number of accesses (thousand) 91,141    90,859    90,858
Mobile accesses               76,200    75,988    75,720
Fixed accesses                14,941    14,871    15,138

Total accesses reached 91.1 million in the quarter (+0.3% y-o-y), 76.2 million
of which was in the mobile business and 14.9 million in the fixed-line
business;

Fixed voice accesses recorded a growth of +13 thousand accesses over 1Q13, for
the first time since 3Q10;

Growth in fixed broadband services net adds recording 84 thousand in 2Q13, 4
times the amount recorded in 1Q13.

Positive quarterly growth in TV accesses (+4.1% q-o-q), excluding, in both
periods, mandatory disconnections in MMDS technology, reversing the quarterly
drop since 4Q11;

Consistent  leadership in the mobile higher revenue segments, recording growth
in postpaid accesses, +20.4% y-o-y, being 27.1% of the accesses base in the
postpaid segment;

Mobile ARPU registered growth of 4.1% y-o-y, stimulated by the 23.4% growth in
Data ARPU;

Total Net Revenue recorded growth of 3.0% y-o-y in the quarter. In April, 2013
became effective a reduction of MTR (-11.8%) and VC (-8.8%). Excluding the
regulatory effect the annual growth would be 4.6% in the quarter;

Fixed Service Revenue recorded substantial improvement in the annual variation
recording -5.2% y-o-y in 2Q13 (-4.1% excluding the effect of the reduction in
the VC);

Mobile Services Revenue recorded variation of 5.2% compared to 2Q12. Excluding
the effect of the MTR reduction in April/13, such variation would be 7.1%
y-o-y;

Year-to-date Recurrent EBITDA recorded R$ 5.3 billion with EBITDA Margin of
31.3% (-2.0 p.p. y-o-y) in the semester;

TELEFONICA BRASIL – Investor Relations
Paulo Cesar Teixeira
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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