VIV FY 2009 Earnings Report — Telefônica Brasil S.A. Revenue & Financial Results | Market Cap Arena

Telefônica Brasil S.A.VIV

FY 2009 Earnings

Reported December 30, 2009

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2009	Prior Q	FY 2008	QoQ Change	YoY Change
Revenue	$3.2B	—	$3.2B	—	-1.1%
Op. Income	$689M	—	$693M	—	-0.5%
Gross Margin	42.5%	—	45.4%	—	-2.9pp
Net Margin	13.7%	—	15.1%	—	-1.4pp
EPS (Diluted)	$0.82	—	$0.96	—	-14.6%
Free Cash Flow	$421M	—	$610M	—	-31.0%

Revenue Flow

Item	Amount
REVENUE	$3.2B
Cost of Revenue	$1.8B
GROSS PROFIT	$1.4B
R&D Expenses	$0
Selling & Marketing	$511M
General & Administrative	$152M
SG&A Expenses	$663M
Other Expenses	$689M
Operating Expenses	$1.4B
Cost & Expenses	$3.2B
OPERATING INCOME	$689M
Interest Income	$9M
Interest Expense	$89M
Other Income/Expenses	-$43M
INCOME BEFORE TAX	$647M
Income Tax Expense	$202M
Net Income from Continuing Ops	$444M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$438M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$444M
D&A	$505M
EBIT	$731M
EBITDA	$1.2B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$3.2B
Cost of Revenue	$1.8B
GROSS PROFIT	$1.4B
R&D Expenses	$0
Selling & Marketing	$511M
General & Administrative	$152M
SG&A Expenses	$663M
Other Expenses	$689M
Operating Expenses	$1.4B
Cost & Expenses	$3.2B
OPERATING INCOME	$689M
Interest Income	$9M
Interest Expense	$89M
Other Income/Expenses	-$43M
INCOME BEFORE TAX	$647M
Income Tax Expense	$202M
Net Income from Continuing Ops	$444M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$438M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$444M
D&A	$505M
EBIT	$731M
EBITDA	$1.2B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$438M
Depreciation & Amortization	$505M
Stock-Based Compensation	$0
Deferred Income Tax	$0
Other Non-Cash Items	$112M
Change in Working Capital	-$166M
OPERATING CASH FLOW	$889M
Capital Expenditure	-$468M
Acquisitions (Net)	$0
Purchases of Investments	$0
Sales/Maturities of Investments	$0
Other Investing Activities	$6M
NET CASH FROM INVESTING	-$463M
Net Debt Issuance	-$57M
Common Stock Repurchased	$0
Common Dividends Paid	-$300M
Other Financing Activities	$31M
NET CASH FROM FINANCING	-$319M
FREE CASH FLOW	$421M
Net Change in Cash	$108M

Balance Sheet

Item	Amount
Cash & Equivalents	$459M
Short-Term Investments	$0
Net Receivables	$770M
Inventory	$30M
Other Current Assets	$38M
TOTAL CURRENT ASSETS	$1.4B
PP&E (Net)	$1.9B
Goodwill	$147M
Intangible Assets	$147M
Long-Term Investments	$69M
Tax Assets	$141M
Other Non-Current Assets	$250M
TOTAL NON-CURRENT ASSETS	$2.7B
TOTAL ASSETS	$4.1B
Account Payables	$476M
Short-Term Debt	$356M
Deferred Revenue	$624M
Other Current Liabilities	$493M
TOTAL CURRENT LIABILITIES	$1.5B
Long-Term Debt	$353M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$201M
TOTAL NON-CURRENT LIABILITIES	$554M
TOTAL LIABILITIES	$2.1B
Common Stock	$1.3B
Additional Paid-In Capital	$554M
Retained Earnings	$0
Treasury Stock	-$4M
Accum. Other Comp. Income	$163M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$2.0B
Minority Interest	$0
TOTAL EQUITY	$2.0B
TOTAL LIABILITIES & EQUITY	$4.1B
Total Debt	$709M
Net Debt	$250M