América Móvil profits leap 139%

30 Oct 2006

Mexican-based mobile group América Móvil said its third quarter net profit jumped 139% year-on-year to MXN10.9 billion (USD992 million), again exceeding forecasts on the back of soaring subscriber growth at its numerous Latin American wireless businesses. In the three months ended 30 September 2006 revenues rose 22.7% to MXN59 billion and EBITDA was up 40.4% to MXN21.3 billion; EBITDA margin rose to 36.8%. América Móvil ended September with 114 million subscribers, up 20.6 million on the start of the year. The group’s Mexican operations added the most subscribers in the period, signing up 1.6 million new clients, followed by Brazil with 1.2 million, Argentina with 948,000 and Colombia with 786,000. The Mexican business, Telcel (Radiomóvil Dipsa), also reported the highest EBITDA margin at 51%, whilst Telecom Américas (Claro) in Brazil was also singled out for special praise: ‘We are seeing good growth and are gaining market share in Brazil,’ América Móvil CEO Daniel Hajj said in a conference call, adding that Claro’s EBITDA margin could rise to nearly 30% by 2008, from the current 12.8%.

Mexico, America Movil (AM)