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America Movil Profits Jump on Lower Debt Financing Costs

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Latin American telecoms network, America Movil has reported that it added nearly 6 million wireless subscribers and 1.5 million fixed line subscribers during the first quarter of this year. At the end of March, the company had 231 million wireless customers, 13.6 million broadband subscribers and 28.7 landline customers.

First-quarter revenues also rose by 6.3% to 156 billion pesos (US$13.54 billion), with 63.5% originating in the wireless operations. Wireless service revenues were up 11.1% year-on-year and fixed-line revenues 1.8%.

Overall mobile voice revenues were up 4.3% while fixed-line voice revenues declined 4.3%, as their expansion in South America was not enough to compensate for the reduction experienced in Mexico, Central America and the Caribbean.

Net income rose by 12.1% to 23.5 billion (USD2 billion), helped by lower debt financing costs.

At constant exchange rates mobile data services increased by 37.8%, followed by fixed data services with 7.4% growth. Fixed voice revenues declined 4.3% as revenue reductions in Mexico, Central America and the Caribbean more than offset the 3.7% rise observed in South America.

Wireless Subscriber Base

Mexico registered net additions of 1.5 million, 38.2% greater than those of the first quarter of 2010 with postpaid net adds of 271 thousand that were also higher than in the prior year. In Brazil the group obtained 1.8 million new subscribers - 52.3% more than last year - while in Colombia it added 750,000, almost twice as many as the year before.

Tracfone, the USA subsidiary obtained 780,000 new subscribers in the period. In Central America they gained 349,000 subscribers, 74.3% more than in the same period of 2010 while in Peru, Ecuador and Chile net subscriber ad ditions totaled 312,000, 235,000 and 176,000 respectively.

At the end of March the subscriber base comprised 65.7 million subscribers in Mexico, 53.4 million in Brazil, 30 million in Colombia and 18.5 million in both Argentina and the USA, with 17.5 million coming from Central America and the Caribbean.

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