(Adds consumer confidence, operating costs)
SAO PAULO, Nov 11 (Reuters) - Telefonica Brasil posted a larger-than-expected 35 percent rise in third-quarter profit as the company clamped down on costs in the face of stagnant sales.
Net profit at the Brazilian division of Spain's Telefonica rose to 1.022 billion reais ($400 million), according to a securities filing, beating an average estimate of 932 million reais in a Reuters survey of analysts.
Revenue rose 1 percent from a year earlier as high inflation and meager job growth dragged the confidence of Brazilian consumers to a five-year low.
Telefonica Brasil trimmed operating costs 1 percent from a year earlier, when its new pay-TV service pushed up spending on advertising, sales and programming.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 7 percent from a year earlier to 2.548 billion reais, in line with forecasts.
$1 = 2.55 Brazilian reais Reporting by Brad Haynes and Alberto Alerigi Jr.; Editing by David Goodman and Louise Heavens