America Movil Profits Rise Despite Regulatory Pressures
Published on: 21st Jul 2011
Note -- this news article is more than a year old.
America Movil has seen its second quarter profits rise by 14 percent to 24.2 billion pesos (USD2.1 billion) on subscriber growth and currency fluctuations. The gains offset regulatory pressures that affected its home market in Mexico.
Revenues rose by 7.8 percent to 160 billion pesos (USD13.7 billion), while the subscriber base reached 236 million customers. Mobile revenues rose 9.4% helped along by mobile data revenues that increased 26.7% whereas fixed-line revenues increased 5.2% on the back of PayTV and broadband revenues.
The company gained a net 5.1 million new customers in the three months to the end of June. The company also has 28.9 million landlines, 14.0 million broadband customers and 11.6 million PayTV units.
Mexico gained 1.3 million wireless subs, 22.2% more than a year ago. In Brazil the company obtained 2.1 million new subscribers -- 59% more than a year ago -- and in Colombia it added 669,000 subscribers, almost three times as many as we gained in the same period of 2010.
At the end of June, the subscriber base comprised 66.9 million subscribers in Mexico, 55.5 million in Brazil, 30.6 million in Colombia and 18.6 million in Argentina. The company also had 18.8 million clients in the USA and 17.5 million in Central America and the Caribbean.
Net debt rose to 217 billion pesos from 207 billion in December 2010 to help fund capital expenditures of 41 billion pesos and share buybacks and dividends of nearly 32 billion pesos.