Iusacell losses widen

31 Jul 2006

Mexican mobile operator and long-distance telco Iusacell has posted a massive widening in losses for the second quarter of 2006, due to an increase in integral financing costs derived from the increase in exchange rates of the peso against the dollar. Iusacell registered a net loss of MXN867 million (USD79.8 million) for the three months ended 30 June 2006, compared with a net loss of MXN34 million in the same period of 2005, despite a 27% increase in revenues, up to MXN1.85 billion. EBITDA was down 3% to MXN300 million. During the quarter the company made investments of approximately USD17 million, applied mainly to the expansion of coverage and capacity of its CDMA2000 1xEV-DO network. Iusacell ended June with 2.0 million subscribers.

Mexico, Iusacell (inc. Unefon)