Second quarter results for Mexican telecoms group America Movil (AM) have revealed a rise in net profit for the three-month period ended 30 June 2009, despite a slowdown in subscriber growth. The company posted a net income of MXN22.5 billion (USD1.69 billion) compared to MXN17.7 billion a year earlier, while revenue rose 11.2% year-on-year to MXN94 billion. AM also said that service revenue increased by 15.9% compared to 2Q 2008, which it attributed to strong data revenue growth. Earnings before interest, tax, depreciation and amortisation (EBITDA) were MXN39.3 billion, a 13.4% annual increase.
Despite the positive financial indicators, subscriber growth for the group was considerably less impressive than the same three-month period in 2008. In 2Q 2009 AM reported that it had added 3.7 million subscribers, compared to 6.1 million the previous year. The company attributed the slowing growth to an industry-wide slowdown, noting however that one positive it had seen from fewer additions was that subscriber acquisition costs had fallen.