Telefônica/Vivo's performance in the last five years
Net revenue of Telefônica/Vivo Group presented annual average growth (CAGR) of 1.78% in the last five years.
While Vivo's net revenue inside mobile telephony increased an average of 7.8% in this period, the revenue of fixed service showed negative growth (-6.0%).
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Inside this period the Group lost market share in fixed and mobile services.
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| Vivo's Market Share | 2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
| Fixed Telephony | 29.8% |
29.7% |
29.7% |
29.5% |
29.1% |
28.5% |
| Fixed Broadband | 28.3% |
27.1% |
26.9% |
25.5% |
23.9% |
23.0% |
| Mobile Telephony | 25.5% |
23.2% |
24.0% |
22.2% |
19.7% |
18.4% |
| Pay TV | 7.5% |
8.6% |
6.5% |
5.4% |
3.7% |
3.3% |
| Total accesses | 28.6% |
28.2% |
28.1% |
27.6% |
26.6% |
26.0% |
However, market share loss in the mobile segment was smaller than in fixed and is associated to a more restrict policy to turn off prepaid calls.
In 2008, Vivo started to gain market share inside postpaid segment and lose in prepaid. This process was accentuated in 2013, when Vivo started to encourage the migration of clients from prepaid to postpaid controlled plans.
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This movement, with the growth of data revenue, stimulated by investments in 3G made by the operators, contributed to the growth of Vivo's mobile revenue in the period going from R$ 15.8 billion to R$ 23.0 billion.
Inside the fixed segment market share moss can be explained, in part, by the fact that in this segment the Group compete effectively only inside the state of São Paulo.
The loss in accesses and revenue inside fixed telephony was already expected. The growth in fixed broadband and pay TV wasn't enough, however, to make up for this loss.
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Vivo's growth in fixed broadband depends on how quick is the implementation of its fiber network until the residence (FTTH), essential to be able to compete with NET and GVT, two operators that offer higher speeds that ADSL networks. In the end of 2013, only 5.2% of the Vivo's fixed broadband accesses were FTTH.
The carrier, that has low debt, has preserved its profitability. Although its EBITDA margin presented drop in 2013, its net profit (R$ 3.7 billion) and Capex (5.5 billion) remained close to the average registered in the previous years.
| R$ million | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 |
| Net Revenue | 31,797 |
32,443 |
31,471 |
33,171 |
33,920 |
34,722 |
| EBITDA | 11,423 |
11,128 |
11,311 |
12,035 |
12,702,7 |
10,576 |
| EBITDA Margin | 35.9% |
34.3% |
35.9% |
36.3% |
37.4% |
30.5% |
| Net Profit | 2,810 |
3,082 |
4,293 |
5,072 |
4,452 |
3,716 |
| Net Debt | 7,239 |
5,099 |
2,096 |
3,165 |
473,2 |
1,800 |
| Capex | 5,139 |
4,551 |
4,930 |
4,929 |
5,067 |
5,582 |
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