AM reveals net profit increase as financing costs fall in 2Q 2011

21 Jul 2011

Latin American telecoms giant America Movil (AM) has reported a 14% year-on-year increase in net profits in the three months to 30 June 2011 on the back of continued revenue growth coupled with a fall in financing costs during the period. In the company’s second fiscal quarter of 2011 it reported consolidated revenues of MXN159.70 billion (USD13.69 billion), up 7.8% against the same period a year earlier, with mobile revenues up 9.4% y-o-y at MXN101 billion, boosted by turnover from mobile data services, which rose 26.7%. Fixed line revenues meanwhile stood at MXN58 billion, up 5.2% compared to 2Q 2010 as a result of 71.3% and 6.3% growth in turnover from pay-TV and broadband services respectively. Earnings before interest, tax, depreciation and amortisation (EBITDA) meanwhile stood at MXN62.00 billion for the three-month period, up 1.8% against the same quarter in 2010. AM noted that financing costs during the period declined 42.3% y-o-y, with net interest expenses flat but partially offset by foreign exchange gains, helping the company report net profits in 2Q 2011 of MXN24.15 billion.

At the end of June 2011 AM had a total subscriber base of more than 290 million, of which the bulk were wireless accesses. Customers signed up to wireless voice services totalled 235.96 million at the end of the first half of 2011, up 11.7% against the 211.29 million reported a year earlier, while fixed revenue generating units (including both fixed voice, pay-TV and broadband connections) stood at 55.49 million, up 13.8% from 47.89 million at end-June 2010.

Mexico, America Movil (AM)