America Movil net profit jumps 52.5%

26 Apr 2007

Mexican wireless holding company America Movil has announced that its 1Q net profit soared 52.5% thanks to strong revenue growth and a big expansion in margins. Net profit of MXN15.80 billion (USD1.45 billion) was up from MXN10.36 billion on the year-ago quarter, the company said in a press release. America Movil’s total sales rose 28.1% to MXN67.72 billion, led by a 31% increase in service revenue to MXN59.11 billion. The company’s EBITDA increased 51.4% to MXN28.94 billion, raising its EBITDA margin to 42.7% from 36.2% for the same quarter in 2006.

America Movil added 5.9 million wireless subscribers organically in the quarter and 564,000 via the acquisition of Telecomunicaciones de Puerto Rico, taking its total to 131.2 million. Of the net additions, 1.8 million were in Mexico, where its Telcel unit is the market leader with 44.8 million customers. In Brazil, the group’s Claro unit added 727,000 subscribers to reach 24.6 million at the end of March while in Colombia the company boosted its subscriber base by 521,000 to just over 20 million, and in Argentina 857,000 to 10.9 million. In the US, the company added 333,000 to end the quarter with 8.2 million.

Mexico, America Movil (AM)