America Movil 1Q profit falls as 3G costs rocket

25 Apr 2008

Mexico’s America Movil posted a 5.9% fall in first-quarter profit as costs rose sharply from the launch of 3G networks across the Latin American region. In the three months ended 31 March 2008, net profit dropped to MXN13.78 billion (USD1.3 billion) from MXN14.64 billion a year earlier. Total costs and expenses rose 22.7%, driven up by deployment of 3G. ‘On the cost side, the main development has been the introduction of 3G services in most of our operations,’ the company said in a statement. By the end of the period, the company had 3G networks in operation in 14 countries incuding Mexico, Colombia, Peru, Nicaragua, Honduras and El Salvador, First quarter revenue jumped 20.6% to MXN81.3 billion, while EBITDA rose to MXN33.9 billion, up 17.8%. America Movil added 5.7 million wireless customers in the first quarter to take its base to 159.2 million.

Mexico, America Movil (AM)