America Movil surprises with 4Q net profit increase

6 Feb 2009

Mexican telecoms giant America Movil (AM) has announced a surprise 14.5% year-on-year rise in net profit for the three months ended 31 December 2008, to MXN16.3 billion (USD1.13 billion), spurred by record subscriber growth. Full-year net profit rose 14.9% to MXN60.1 billion. AM added 10.1 million subscribers over the three-month period, the most ever for the group in a single quarter, with the fall in value of the peso contributed to higher sales. Columbia, Brazil and Ecuador had the highest net subscriber additions, revealing 87%, 36% and 34% y-o-y increases respectively. The group reported a total of 182.7 million wireless customers worldwide at the end of the 2008, an increase of 29.3 million, or 19.1%, over the year.

Total revenue for the fourth quarter increased 11.6% year-on-year to MXN94.4 billion. Service revenue for the three-month period increased 14.7% to MXN80.4 billion, whilst revenue from data services contributed strongly to the growth, rising 37% year-on-year. Full-year revenue meanwhile increased 13.6% to MXN346 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) also rose, up 7.3% in the most recent quarter against 4Q 2007 at MXN34.9 billion, and up 11.8% for the twelve months ended 31 December 2008. CAPEX for 2008 reportedly exceeded MXN68 billion.

Mexico, America Movil (AM)