Unefón 1Q revenues down 15%

4 May 2006

Mexican mobile operator Unefón said first quarter revenues declined by 15% year-on-year to MXN925 million (USD84.3 million), primarily due to a drop in interconnection rates between mobile operators introduced at the end of 2004, according to BNamericas citing a company statement to the Mexican stock exchange BMV. EBITDA was MXN245 million.

Unefón ended March 2006 with 1.4 million subscribers, down 1.4% compared to 1Q05, as the company chased higher revenue post-paid subscribers whilst shedding pre-paid users. Contract customers made up 13% of the total base, compared with 5% a year earlier. Unefón operates a CDMA network in 36 cities and offers services in an additional twelve under an agreement with its sister operator Iusacell. It is investing USD150 million to expand its network to 29 more cities in 2006, including 16 in the second quarter.

Mexico, Unefon