Iusacell 1Q07 Net Loss Widens 142% Yoy

Mexican mobile operator Iusacell posted a 1.24bn-peso (US$113mn) net loss in the first quarter of 2007, up 142% compared to a loss of 512mn pesos in the same period last year, the company's parent Grupo Iusacell said in its earnings statement.

The company did not provide an explanation for the bigger loss, which came despite a 9% increase in quarterly revenues to 2.05bn pesos compared to 1.88bn pesos in 1Q06.

Revenue was boosted by increased earnings from value added and roaming services, and as a result of the calling party pays regulations introduced last year.

Ebitda rose 31% in 1Q07 to 377mn pesos from 287mn pesos in the year-ago period. The Ebitda margin increased to 19% at the end of Q1 compared to 16% a year ago.

The company ended the quarter with around 2.2mn subscribers.

Capex for the quarter was US$22mn and went mainly to expansion of network coverage and capacity of its 3G network and EV-DO services. During the quarter the company also spent 804mn pesos on replacing transmission cells for the network, which it counted as a non-recurring item.

The company's shareholders approved a merger with fellow mobile operator Unefon, which will give the merged company national coverage, greater economies of scale and eliminate redundant expenses, the company previously said."

Posted to the site on 1st May 2007