3Q13 Results: Telefonica Brasil S.A.

                     3Q13 Results: Telefonica Brasil S.A.

PR Newswire

SAO PAULO, Nov. 7, 2013

SAO PAULO, Nov. 7, 2013 /PRNewswire/ -- Telefonica Brasil - (Bovespa: VIVT3
[ON = Common Shares] / VIVT4 [PN = Preferred Shares]; NYSE: VIV), announces
its consolidated results for the third quarter of 2013 (3Q13). The Company
recorded a solid operating performance in all fixed business and accelerated
its growth in the postpaid and mobile data segments.

R$ million                    3Q13     2Q13     3Q12
Net Revenue                   8,618.2  8,491.5  8,460.6
Total Operating Costs         -6,236.9 -5,916.0 -5,548.6
EBITDA                        2,381.3  2,575.5  2,912.0
EBITDA Margin (%)             27.6%    30.3%    34.4%
Recurrent EBITDA              2,381.3  2,495.9  2,871.6
Recurrent EBITDA Margin %     27.6%    29.4%    33.9%
Net Result                    760.2    914.2    935.8
Number of accesses (thousand) 91,712   91,141   91,892
Mobile accesses               76,614   76,200   76,806
Fixed accesses                15,098   14,941   15,087

Total accesses reached 91.7 million in the quarter (+0.6% q-o-q). Fixed voice
increased +60 thousand accesses in 3Q13 over 2Q13, while fixed broadband
services records 46 thousand net additions  in 3Q13, specially on FTTH. TV
accesses increased in +9.4% q-o-q, with net additions of 51 thousand accesses,
leveraged by the additions in DTH and IPTV.

On the mobile business, we increased growth in postpaid accesses, (+23.3%
y-o-y in 3Q13) and 1,453 thousand net additions in the quarter, a historic
record. Mobile data accesses recorded growth of 88.1% y-o-y. Mobile Data ARPU
registered growth of 24.0% y-o-y, +0.6 p.p. over the growth recorded in the
previous quarter.

Total Net Revenue recorded growth of 1.9% y-o-y. Total Services Revenue
increased 1.5% y-o-y or 3.1% y-o-y by excluding the regulatory effect of the
reduction in the MTR and VC.

Mobile Services Revenue recorded an annual variation of 7.1% or 9.1% y-o-y by
excluding the effect of the MTR reduction in April/13.

Data and SVA Revenues already accounts for 32.4% of the Mobile Services
Revenue, leveraged by the growth of mobile internet revenues.

Year-to-date Recurrent EBITDA recorded R$ 7.7 billion with EBITDA Margin of
30.1% (-3.5 p.p. y-o-y) in the period.

Investments of R$ 1.9 billion in the quarter, of which R$ 451 million
referring to license upgrade, equivalent to 16.4% of the Net Revenue, focusing
on quality, 4G coverage and fiber.

TELEFONICA BRASIL – Investor Relations
Paulo Cesar Teixeira
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