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America Movil Revenues Rise, but Hurt by Currency Losses

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Latin American telco, America Movil has reported financial results for the second quarter that beat analyst expectations, despite concerns of a might tighter regulatory regime coming into place in Mexico.

The company posted second-quarter revenues that rose by 1.6% to MXN194.8 billion (USD15.4 billion), although the performance was hurt by currency fluctuations. Excluding those, revenues would have rise by 10 percent.

Second quarter EBITDA, MXN65 billion, was slightly lower than that of the year-earlier quarter in peso terms; yet, at constant exchange rates it was up 5.0%

Net profit for the quarter was MXN 14.2 billion (USD1.12 billion), 7.9% higher than that of a year before, including a 13% rise in financing costs.

The customer base at the end of June stood at 32.8 million -- a 5 percent rise over the year.

Of the total, 262 million are wireless subscribers, 4.1% more than a year before, after net disconnections of 867 thousand clients in the quarter. In Peru and Ecuador, the company had one-off disconnections of 1.9 million and 307 thousand, respectively, as a result of the implementation of more strict churn policies. In the USA and in Chile, they subtracted 192 thousand and 100 thousand subscribers respectively.

At the end of the quarter, we had 72 million subscribers in Mexico, 66.5 million in Brazil, 27.8 million in Colombia and 23 million in the USA. The combined operations of Central America and the Caribbean had over 22 million clients and have shown the fastest growth rate, 12.3%.

Net debt at the end of June was up by MXN55 billion to MXN427 billion (USD33.8 billion).

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Tags: america movil  Mexico