Record subscriber growth at América Móvil

29 Jul 2005

Mexico-based Latin American wireless operator América Móvil (AM), owned by billionaire Carlos Slim, has revealed that at the end of June 2005 its overall mobile subscriber base stood at 73.8 million. After adding 5.3 million customers in the first quarter of 2005, the company signed up a further 7.4 million in the second quarter, more than double the amount garnered in the corresponding period of 2004. Despite its best ever quarterly subscriber increase, AM remains behind its great rival Telefónica Móviles, who this week reported 86.5 million subscribers at June. However, it can take some consolation from adding customers at a much faster rate than the Spainish cellco.

Of AM’s eleven mobile subsidiaries in Latin America, it was Comcel of Colombia that led subscriber additions, with 2.2 million new customers in the quarter. Colombia is one of the fastest growing mobile markets in the world, with cellular penetration surging from 23% at the end of 2004 to 34% at June 2005. Second in terms of net adds was Brazilian operator Telecom Américas (Claro) in Brazil, followed by Telcel (Mexico, 1.7 million) and CTI (Argentina, 824,000). AM also has two million fixed line customers in El Salvador, Guatemala and Nicaragua.

Financially, the second quarter figures make for impressive reading, with year-on-year sales up 33.5% to MXN42.6 billion (USD3.8 billion) and net profit soaring 147.8% to MXN7.9 billion.