America Movil Profits Up on Lower Costs - Secures Chinese Bank Loan
Published on: 29th Apr 2009
Note -- this news article is more than a year old.
Am rica M vil has announced that during the first quarter of 2009 it added 3.9 million subscribers taking the firms total base across Latin America to 186.6 million. The company's Mexican operations gained 1.2 million subscribers in the quarter, followed by Brazil, with 855 thousand, Tracfone in the US with 567 thousand and Argentina with 436 thousand.
Together with 3.8 million landlines in Central America and the Caribbean Movil reported a total of 190.4 million lines in the Americas.
First quarter revenues totaled Ps. 93.8 billion (USD6.8 billion), up 15.4% year-on-year, with service revenues rising 18.5% supported by data revenues and continued inroads in the postpaid market. Data has increased its share of service revenues since the introduction of 3G services.
Net profits rose by 18.7% to reach Ps. 16.4 billion (USD1.19 billion) - driven by lower interest rates and net debt costs.
The company also warned that it expects to lower its subscriber growth target for 2009 from 19 million to around 16-17 million.
The firm also announced a deal with the Chinese state-controlled China Development Bank (CDB) for a USD1 billion loan which is being used to finance the purchase of network infrastructure from an unnamed supplier. It is worth noting that ZTE recently announced a loan deal with the same Chinese bank to facilitate vendor financing for infrastructure contracts.