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3Q16 Results: Telefônica Brasil S.A.SAO PAULO, Oct. 25, 2016 /PRNewswire/ -- Telefônica Brasil - (Bovespa: VIVT3 [Common Shares] / VIVT4 [Preferred Shares]; NYSE: VIV), announces its results for the 3Q16. In 3Q16, Vivo maintains capture of synergies and efficiency initiatives, with solid margin expansion and cash flow generation.
Leadership in postpaid, with continued growth (+6.8% y-o-y in 3Q16) and share of net additions reaching 42.9% until August 2016. Postpaid market share stood at 42.4% in August (+0.3 p.p. y-o-y). Mobile ARPU recorded y-o-y growth of 14.9% in 3Q16, driven by market rationality, the increased mix of postpaid clients and the 35% y-o-y growth in Data ARPU, which corresponded to 58.9% of total ARPU in the period. Broadband accesses totaled 7.3 million in 3Q16 (+1.8% y-o-y), with FTTx accounting for 56.3% of the total accesses and with an 8.6% y-o-y growth. Broadband ARPU increased by 7.8% y-o-y in 3Q16, influenced by the growth in the ultra-broadband customer base. Pay TV accesses totaled 1.8 million in 3Q16, with IPTV growth of 38.5%, while pay TV ARPU grew 12.4%, reflecting the Company's strategy of focusing on higher-value clients. Net operating services revenue grew 2.2% in 3Q16 over 3Q15 (+4.5% y-o-y excluding regulatory effects), maintaining its positive performance. Mobile services revenue climbed 4.9% y-o-y in 3Q16. Excluding the effect of MTR reductions in 2016, this line increased 7.0% over 3Q15. Data and digital services revenue rose 23.3% y-o-y in 3Q16, driven by the strong increase in mobile internet revenue, which grew 36.4% over 3Q15. Operating costs fell 2.2% y-o-y in 3Q16. Excluding the effect from the corporate restructuring in 3Q15, the reduction was 1.9%, reflecting the continuous efforts to reduce costs by focusing on increasing efficiency and synergies. EBITDA totaled R$3.4 billion in 3Q16, 8.8% up on 3Q15, with an EBITDA margin of 31.9% (+2.3 p.p. y-o-y). Excluding the R$19.2 million non-recurring effect in 3Q15, EBITDA climbed 8.1% y-o-y, with a margin increase of 2.1 p.p. over the previous year, driven by the capture of synergies and efficiency initiatives. Third-quarter investments amounted to R$1.9 billion, accounting for 18.2% of net operating revenue. Recurring EBITDA – Capex grew by 42.3% over 3Q15, with a strong expansion in FCF (+36.7% y-o-y). The focus on executing synergies guaranteed the capture of 64% of NPV of best case scenario and fully delivering the NPV of the base case scenario. TELEFÔNICA BRASIL – Investor Relations To download the complete version of the Company's earnings release, please visit our website: http://www.telefonica.com.br/ir Contact: To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/3q16-results-telefonica-brasil-sa-300351176.html SOURCE Telefonica Brasil S.A. 
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