Feb. 25 (Bloomberg) -- Telefonica Brasil SA, Brazil’s largest phone company by revenue, rose the most since 2011 after reporting fourth-quarter profit that doubled analysts’ estimates as mobile-service revenue grew faster than its competitors.
The Sao Paulo-based company, also known as Vivo, gained 3.3 percent to 50.27 reais at 5:21 p.m. local time after rising as much as 4.8 percent in the steepest intraday advance since October 2011. Volume was 1.5 times the full-day average of the past three months. The benchmark Bovespa index added 0.1 percent.
Fourth-quarter adjusted net income was 3.52 billion reais ($1.8 billion), according to data compiled by Bloomberg after the company reported earnings before the start of trading today. The average estimate of eight analysts was for a profit of 1.24 billion. Revenue from mobile phone and Internet services increased 7.4 percent to 5.5 billion reais in the three months through December from the same period in 2011, according to a regulatory filing today.
“Telefonica Brasil continues to enjoy a quite strong competitive position in mobile,” Luis Azevedo and Tales Freire, analysts at Banco Bradesco SA’s brokerage unit, wrote in a note to clients dated today. “The company posted the highest mobile net service revenues growth among Brazilian telecom companies.”
Vivo is the brand under which Telefonica is reorganizing all its mobile, fixed-line, cable TV and Internet services.
The stock has dropped 1.5 percent this year, compared with the Bovespa’s 13 percent decline.
--Editors: Richard Richtmyer, David Papadopoulos