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Telefonica Brasil, S.A (VIV)

  • Thu, Nov. 12, 4:39 PM
    • Telecom Italia (TI -1.3%) says it's open to all options for its Brazilian mobile unit TIM Participações (TSU -3.1%), CEO Marco Patuano says -- including a merger with the country's leader Oi (OIBR -2.9%), if Oi can clean up its debt and if regulations get looser.
    • TI has made no decisions about whether it would want control in a tie-up with Oi, he says. Oi recently entered into seven months' exclusive talks with Mikhail Fridman's Letter One investment company over merging Oi with a competitor.
    • Talk of Brazilian telecom consolidation has boiled at a high pitch for months, more so in recent weeks as Fridman floated a $4B incentive to get a deal to happen. An Oi-TIM combination would get a boost against Telefonica Brasil (VIV -2.5%) and America Movil (AMX +0.3%). Key CEOs are in near-unison about the country changing its rules governing fixed-line concessions, though.
    • Earlier in Barcelona, Oi's Bayard Gontijo said he expected a government proposal to change rules in about 10 weeks.
    • Patuano is calling for Oi to work out its deb and financial structure: "So I think 2016 will be the magic year for Oi to find a solution whatever that is."
    • America Movil's Carlos Garcia Moreno is skeptical, though: "For anyone who wants to take over Oi, it is basically like tying yourself to a cannonball and jumping into the water."
    • Previously: Oi ADRs down 5% as Brazilian telecom swings to Q3 loss (Nov. 12 2015)
    | Thu, Nov. 12, 4:39 PM | 6 Comments
  • Wed, Nov. 11, 7:25 PM
    | Wed, Nov. 11, 7:25 PM | 1 Comment
  • Wed, Nov. 4, 8:14 PM
    • Telefonica Brasil (NYSE:VIV) posted Q3 profits that missed estimates amid sales that dragged a bit, and provisions for bad debt that were up heavily.
    • Net income fell 16% Y/Y to 886.2M reais (about $233M). Recurrent EBITDA was 3.2B reais
    • Of revenues that grew 5.2%, net mobile revenues were 6.29B reais (up 6.2%); net fixed-line revenues were 4.3B reais (up 3.9%).
    • In operational results, number of accesses came to 103.3M (up 0.1%): 79.4M mobile accesses (down 0.5%); 23.9M fixed-line accesses (up 2.4%).
    • At its last after hours trade, VIV was up 1.1%.
    • Press Release
    | Wed, Nov. 4, 8:14 PM | Comment!
  • Wed, Nov. 4, 6:57 PM
    • Telefonica Brasil (NYSE:VIV): Q3 net income of R$886.2M
    • Revenue of R$10.58B (+5.2% Y/Y)
    • Press Release
    | Wed, Nov. 4, 6:57 PM | Comment!
  • Fri, Oct. 30, 9:52 AM
    | Fri, Oct. 30, 9:52 AM | 3 Comments
  • Wed, Oct. 28, 10:47 AM
    | Wed, Oct. 28, 10:47 AM | Comment!
  • Tue, Oct. 27, 8:10 PM
    | Tue, Oct. 27, 8:10 PM | 2 Comments
  • Tue, Oct. 27, 12:10 PM
    • Oi SA (NYSE:OIBR) is off 6.4% on NYSE trading, giving back a chunk of yesterday's near-10% gains fueled by a Russian billionaire's multibillion-dollar push to merge it with rival TIM Participações (NYSE:TSU). For its part, TIM is down 6.2% in U.S. trading.
    • Today, Brazil's communications minister, Andre Figueiredo, said that the country understands that the consolidation of its telecommunications sector is a "natural process" but will act to protect consumers by encouraging competition in the sector.
    • Shares soared yesterday after Russia's LetterOne Group -- an investment vehicle of billionaire Mikhail Fridman -- told Oi it would invest $4B if it merged with TIM. TIM's majority owner, Telecom Italia (TI -1.9%), doused some enthusiasm by saying it was likely to snub such an offer.
    • Figueiredo says he's worried about Oi's debt but says there are mechanisms to help the company recover without necessarily involving direct investment by the government.
    • Also on the move today: market leader Telefonica Brasil (NYSE:VIV), down 3.4%.
    • Previously: Bloomberg: Telecom Italia leaning against $4B offer for TIM tie-up (Oct. 26 2015)
    • Previously: Oi up 14.9% as it receives multibillion-dollar offer tied to TIM combination (Oct. 26 2015)
    | Tue, Oct. 27, 12:10 PM | Comment!
  • Mon, Oct. 26, 6:30 PM
    • Brazil's Oi SA (NYSE:OIBR) gave up some morning gains -- fueled by a $4B offer to tie up with TIM Participações -- to finish up 8.9%, as TIM's majority owner Telecom Italia (TI +1%) indicated it would likely snub the offer.
    • Bloomberg says that Telecom Italia is inclined to pursue a Brazil strategy as a stand-alone, though it continues to review options including a deal with Oi. TIM (NYSE:TSU) gave up some gains as well, finishing U.S. trading up 5.8%.
    • Through his LetterOne, Russian billionaire Mikhail Fridman offered to put $4B into Oi if it combined with TIM. Fridman was looking for exclusive terms for his investment firm to negotiate the deal.
    • Last year, Oi and TIM both took close looks at acquiring the other; the two combined have about 44% of the local wireless market. Brazil's economy is shrinking, but market leader Telefonica Brasil (VIV +4.4%) is predicting that smartphone penetration and mobile data use will grow by at least 10% this year.
    • Previously: Oi up 14.9% as it receives multibillion-dollar offer tied to TIM combination (Oct. 26 2015)
    • Previously: Moody's downgrades ratings for Oi SA (Oct. 07 2015)
    | Mon, Oct. 26, 6:30 PM | Comment!
  • Thu, Sep. 24, 9:25 AM
    | Thu, Sep. 24, 9:25 AM | Comment!
  • Fri, Sep. 18, 7:49 PM
    • Vivendi (OTCPK:VIVHY -2.4%) is out of Telefonica Brasil (VIV -4.6%) after finalizing its share swaps related to the sale of GVT.
    • The French conglomerate sold a 4% stake in Vivo on the open market for $877M in July and entered a swap deal with Telefonica (TEF -4.2%) for its remaining 3.5% stake, taking approximately a 0.95% interest in Telefonica.
    • It had obtained the stake in Vivo after selling GVT to Telefonica.
    • So Vivendi is "out" of Brazil, but still has an indirect presence: a 15.5% stake in Telecom Italia, which owns TIM Brasil.
    | Fri, Sep. 18, 7:49 PM | Comment!
  • Mon, Aug. 31, 11:15 AM
    • Against the backdrop of Brazilian recession, Telefonica (NYSE:TEF) is looking to its growing broadband footprint in the country to help it weather that storm, and COO Jose Maria Alvarez-Pallete is upbeat: "The economy won't help, but the company is improving."
    • “We won’t change our plans," he told reporters in Spain. "The current momentum will continue. We are optimistic toward the medium term."
    • Telefonica is integrating broadband operator GVT, which it acquired from Vivendi for about $9.8B and began folding into Telefonica Brasil (NYSE:VIV) to forge the leading integrated telecom in the country, blending GVT's wide-reaching fiber-optic network with Vivo's large 3G/4G networks.
    • Brazil -- Telefonica's second-largest market -- is in the midst of its longest recession since the 1930s and is dealing with a weaker currency, as depreciation in the real has accelerated over the past six weeks. (First-half currency effect "hasn't been bad," Pallete says.)
    • Previously: Telefonica -0.3% after Q2 sales beat, raised full-year guidance (Jul. 30 2015)
    • Previously: Telefónica closes on €7.5B purchase of GVT (May. 29 2015)
    | Mon, Aug. 31, 11:15 AM | 3 Comments
  • Thu, Jul. 30, 8:45 PM
    • Telefonica (NYSE:TEF) shares had a lackluster performance today in U.S. trading, -0.3% on heavier-than-average volume, after posting second-quarter sales that beat analyst estimates and raising guidance on revenue growth for the remainder of the year.
    • Profits doubled to €3.7B (just over $4B) on revenues of €11.88B ($13B). Revenue stabilized in Spain in May and June, for the first time since December 2009, and will return to growth, the company said. Telefonica Brasil (NYSE:VIV), meanwhile, showed revenue growth acceleration and the German business is showing benefits from the e-Plus integration, with 12.5% organic OIBDA growth.
    • The company sees revenue growth for the full year at greater than 9.5%, up from a 7% previous estimate. New dates for incorporating GVT (in Brazil) and DTS (in Spain) are adding 1.8 percentage points to growth estimates.
    • However, the incorporations mean full-year OIBDA margin will likely dip by 1.2 percentage points, it said, greater than the 1 point previously forecast.
    • Press Release
    | Thu, Jul. 30, 8:45 PM | Comment!
  • Wed, Jul. 29, 9:13 AM
    | Wed, Jul. 29, 9:13 AM | 2 Comments
  • Wed, Jul. 29, 9:09 AM
    • Telefonica Brasil (NYSE:VIV) is up 3.7% premarket after posting Q2 revenues that surprised to the upside with 5.4% growth. EBITDA grew 2.8% to 3.13B reais.
    • Revenue breakout: Net Mobile Revenue, 6.21B reais (up 7%); Net Fixed Revenue, 4.22B reais (up 3.1%). Operating costs grew 6.5% Y/Y to 7.3B reais.
    • Total accesses of 106.4M were up 3.9% Y/Y (Mobile accesses of 82.7M were up 4.2%; fixed accesses of 23.7M were up 3.1%).
    • Postpaid accesses grew 13.1% and mobile ARPU was up 0.8% (data ARPU up 27.3%). Broadband accesses hit 7.1M and TV accesses 1.8M.
    • Press Release
    | Wed, Jul. 29, 9:09 AM | Comment!
  • Wed, Jul. 29, 8:55 AM
    • Vivendi (OTCPK:VIVHY) is taking on a minority stake in Telefonica (NYSE:TEF) -- a part of Vivendi's deal to divest Brazilian broadband firm GVT and a piece in its strategy to grow via European partnerships.
    • Vivendi says it's exchanging 58.4M preferred shares in Telefonica Brasil (NYSE:VIV) for a small stake worth about €630M today in Telefonica.
    • The French conglomerate replaced Telefonica as the biggest shareholder in Telecom Italia after increasing its stake in the Italian carrier to 14.9%.
    • Telefonica is up 0.3% on Spain's exchange.
    | Wed, Jul. 29, 8:55 AM | Comment!
Company Description
Telefonica Brasil SA provides fixed-line telecommunications services in the State of Sao Paulo. It offers international & interregional long-distance services, as well as multimedia communication services including text, data, & voice among others.
Sector: Technology
Country: Brazil