America Movil unveils first results following Telmex, Telint consolidation

28 Oct 2010

Latin American telecoms giant America Movil (AM) has released its first quarterly financial data since it began consolidating the results of Mexican fixed line incumbent Telefonos de Mexico (Telmex) and regional fixed line group Telmex Internacional (Telint). Revenues for the newly combined group for the three months ended 30 September 2010 stood at MXN153.555 billion (USD12.33 billion), up 5.3% year-on-year, with turnover from wireless services helping to boost results as fixed line revenues stagnated. For the company’s third fiscal quarter wireless revenue was MXN95.355 billion, up 8.6% against the same period a year earlier, while turnover from fixed line services fell by 0.01% to MXN53.397 billion, with the continued growth of broadband services helping to offset declines related to traditional voice connections. Earnings before interest, tax, depreciation and amortisation (EBITDA) in 3Q10 was MXN63.040 billion, up 6% y-o-y, while net profit was MXN23.410 billion, an 8.8% increase in annual terms, although lower than had been expected by analysts.

Group wireless subscribers continued to climb during the quarter, rising to 216.836 million as at 30 September 2010, up 2.6% year-on-year. AM also reported a further 28.1 million fixed voice lines, 12.5 million broadband accesses and 9.4 million pay-TV subscribers, noting that excluding Mexico fixed line connections were up 13.1% while broadband subscriber numbers were up 20.3% y-o-y and pay-TV customers up 26%.

Commenting on the results the company said: ‘With the economies recovering in our region of operations—some of them expanding quite rapidly—and data services continuing their rapid rise on both the fixed and wireless platforms, our operating and financial results for the third quarter turned out to be quite solid, with access lines exhibiting double-digit growth and wireless voice revenues picking up from last year.’