Net profit jumps 31.6% for America Movil in 3Q

29 Oct 2008

Mexican telecoms giant America Movil has announced a 31.6% rise in net profit for the third quarter of 2008, attributing the positive results to higher sales and lower depreciation and amortisation charges; for the three months ended 30 September 2008 net profit was MXN12.4 billion (USD933.7 million) compared to MXN9.4 billion for the same period in 2007. The company noted that depreciation and amortisation costs for its older TDMA and CDMA networks had dropped to 11.9% of revenues, down from 15.7% a year earlier, contributing significantly to a 25.2% rise in operating profit. Total revenues for the group were up, climbing 9.8% year-on-year, with revenues from value added services in Brazil and Columbia highlighted as strong contributors to this increase.

At the end of the third quarter the group reported that its subscriber base had reached 172.6 million wireless customers and 3.9 million wireline, and over the three-month period 7.3 million new wireless subscribers were added, 18.3% more than in the same period last year. America Movil’s Brazilian operations accounted for 2.6 million of these additions, followed by Mexico and Columbia where 1.5 million and 1.2 million customers signed up respectively.

Mexico, America Movil (AM)