Grupo Iusacell Breaks into Q2 Profit on Currency Gains

Mexico's Grupo Iusacell has reported a Q2 profit of Ps.285 million (SU$21.5 million), compared to net loss of Ps.228 million (US$17.2 million) for the same period of the previous year, due primarily to a Ps.481 million foreign exchange gain. Revenues were up slightly to Ps.2.79 billion (US$210 million), compared to Ps.2.67 billion a year ago.

Cost and expenses during the quarter were Ps.2.3 billion, compared to Ps.2.2 billion in the same period of the previous year. As a result, Grupo Iusacell reported EBITDA of Ps.482 million, compared to Ps.477 million in the second quarter of 2008.

The subscriber base fell by 10% to 3.96 million - partly due to a change in the way the company counts active subscribers. The number of postpaid subscribers increased 9% over the year ago period. As a result, Grupo Iusacell's subscriber base is 32% postpaid and 68% prepaid users.

Quarterly costs were Ps.1.64 billion, versus Ps.1.52 billion in the same 2008 period. The increase was primarily a result of increased rents and maintenance costs of transmission sites, which are dollar denominated.

As of June 30, 2009, the debt balance of the company was Ps.11.97 billion (US$902 million), compared to the Ps.10.4 billion reported a year ago; the increase is mainly due to the rise in the peso amount of the dollar denominated debt, resulting from the exchange rate depreciation.

Posted to the site on 23rd July 2009