VIV FY 2008 Earnings Report — Telefônica Brasil S.A. Revenue & Financial Results | Market Cap Arena

Telefônica Brasil S.A.VIV

FY 2008 Earnings

Reported December 30, 2008

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2008	Prior Q	FY 2007	QoQ Change	YoY Change
Revenue	$3.2B	—	$3.0B	—	8.5%
Op. Income	$693M	—	$646M	—	7.2%
Gross Margin	45.4%	—	45.5%	—	-0.1pp
Net Margin	15.1%	—	16.0%	—	-0.9pp
EPS (Diluted)	$0.96	—	$0.94	—	2.4%
Free Cash Flow	$610M	—	$552M	—	10.6%

Revenue Flow

Item	Amount
REVENUE	$3.2B
Cost of Revenue	$1.8B
GROSS PROFIT	$1.5B
R&D Expenses	$0
Selling & Marketing	$490M
General & Administrative	$136M
SG&A Expenses	$626M
Other Expenses	$835M
Operating Expenses	$1.5B
Cost & Expenses	$3.2B
OPERATING INCOME	$693M
Interest Income	$162M
Interest Expense	$59M
Other Income/Expenses	$13M
INCOME BEFORE TAX	$705M
Income Tax Expense	$218M
Net Income from Continuing Ops	$488M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$488M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$488M
D&A	$559M
EBIT	$790M
EBITDA	$1.3B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$3.2B
Cost of Revenue	$1.8B
GROSS PROFIT	$1.5B
R&D Expenses	$0
Selling & Marketing	$490M
General & Administrative	$136M
SG&A Expenses	$626M
Other Expenses	$835M
Operating Expenses	$1.5B
Cost & Expenses	$3.2B
OPERATING INCOME	$693M
Interest Income	$162M
Interest Expense	$59M
Other Income/Expenses	$13M
INCOME BEFORE TAX	$705M
Income Tax Expense	$218M
Net Income from Continuing Ops	$488M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$488M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$488M
D&A	$559M
EBIT	$790M
EBITDA	$1.3B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$488M
Depreciation & Amortization	$559M
Stock-Based Compensation	$0
Deferred Income Tax	$0
Other Non-Cash Items	$172M
Change in Working Capital	-$185M
OPERATING CASH FLOW	$1.0B
Capital Expenditure	-$424M
Acquisitions (Net)	$0
Purchases of Investments	$0
Sales/Maturities of Investments	$0
Other Investing Activities	$6M
NET CASH FROM INVESTING	-$418M
Net Debt Issuance	$47M
Common Stock Repurchased	$0
Common Dividends Paid	-$447M
Other Financing Activities	-$53M
NET CASH FROM FINANCING	-$453M
FREE CASH FLOW	$610M
Net Change in Cash	$163M

Balance Sheet

Item	Amount
Cash & Equivalents	$6M
Short-Term Investments	$344M
Net Receivables	$635M
Inventory	$33M
Other Current Assets	$267M
TOTAL CURRENT ASSETS	$1.3B
PP&E (Net)	$2.0B
Goodwill	$0
Intangible Assets	$373M
Long-Term Investments	$0
Tax Assets	$117M
Other Non-Current Assets	$248M
TOTAL NON-CURRENT ASSETS	$2.7B
TOTAL ASSETS	$4.0B
Account Payables	$466M
Short-Term Debt	$105M
Deferred Revenue	$35M
Other Current Liabilities	$385M
TOTAL CURRENT LIABILITIES	$1.2B
Long-Term Debt	$648M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$178M
TOTAL NON-CURRENT LIABILITIES	$826M
TOTAL LIABILITIES	$2.0B
Common Stock	$0
Additional Paid-In Capital	$538M
Retained Earnings	$133M
Treasury Stock	$0
Accum. Other Comp. Income	$28M
Other Equity	-$671M
TOTAL STOCKHOLDERS' EQUITY	$2.0B
Minority Interest	$0
TOTAL EQUITY	$2.0B
TOTAL LIABILITIES & EQUITY	$4.0B
Total Debt	$753M
Net Debt	$746M