Mexico news special: Iusacell swings to profit on debt restructuring

27 Oct 2006

Mexican mobile operator and long-distance telco Iusacell returned to profit in the third quarter of 2006, after it completed the restructuring of USD416 million of debt in the period. Iusacell registered a net income of MXN4.2 billion (USD391.4 million) for the three months ended 30 September 2006, compared with a net loss of MXN499 million in the same period of 2005. Net revenues rose 20% to MXN1.93 billion, whilst EBITDA was MXN332 million. During the quarter the company made investments of approximately USD22 million, applied mainly to the expansion of coverage and capacity of its CDMA2000 1xEV-DO network. Iusacell ended September with approximately two million subscribers, steady with three months previously.

According to TeleGeography’s GlobalComms database, in early September Iusacell and sister company Unefon announced long anticipated plans to merge in a bid to provide a stronger challenge to market leaders Telefónica Móviles México and Telcel. The merger will create a company with more than 3.3 million customers and a nationwide footprint. Iusacell and Unefon already share some of their CDMA infrastructure, including high speed CDMA2000 1xEV-DO networks.

Mexico, Iusacell (inc. Unefon)