Mexico's America Movil 2Q Net Profit Up 25% to $1.75 billion
Published on: 20th Jul 2008
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MEXICO CITY (Dow Jones) Mexican wireless carrier America Movil said Monday its second quarter net profit rose 25% on the year amid continued robust subscriber growth.
Net profit was 17.7 billion pesos ($1.75 billion), or MXN0.51 per share, the company said in a press release.
America Movil's total sales increased 14% from the second quarter of 2007 to MXN84.6 billion.
The market had expected net profit of MXN15.92 billion, or MXN0.46 a share, on revenue of MXN86.59 billion, according to the median forecast of nine analysts surveyed by Dow Jones Newswires.
Earnings before interest, taxes, depreciation and amortization, or Ebitda, a measure of cash flow, increased 14% to MXN34.7 billion, while the company's Ebitda margin was 41%.
The company reported a financial gain of MXN235 million, compared with a loss of MXN548 million in the second quarter of 2007.
The company added 6.1 million mobile clients in the quarter, bringing its total wireless subscriber base to 165.3 million at the end of June.
Of the net additions, 1.3 million were in Mexico, where the company's Telcel unit finished the quarter with 52.9 million subscribers. In Brazil, America Movil added 1.9 million subscribers to finish the quarter with 33.1 million.
America Movil's local L shares, which are down 21.1% on the year versus a 4.6% drop in the benchmark IPC stock index, fell 2.2% Monday ahead of the report to MXN26.43.
-By Paul Kiernan, Dow Jones Newswires; (5255)5001-5726, email@example.com
(END) Dow Jones Newswires