Latin American telecoms giant America Movil (AM) saw net profit in its third fiscal quarter of the year slump by 21% as a result of foreign exchange losses in the period. In the three months ended 30 September the company posted a net profit of MXN18.682 billion (USD1.35 billion), down from MXN23.706 billion in the same quarter a year earlier. AM reported foreign exchange losses of MXN22.185 billion in 3Q11 compared with a forex gain of MXN62 million a year earlier, with it attributing this to ‘the sharp depreciation of various currencies vis-a-vis the US dollar and the fact that a portion of our net debt is exposed to dollars and other hard currencies’. It also noted that around 12.5% of the group’s revenue is dollar-based – coming from the US, Puerto Rico, El Salvador and Ecuador – while almost 4% comes from countries with currencies pegged to the US dollar.
AM saw service revenues of MXN152.306 billion in 3Q11, up 7.5% year-on-year from the corresponding quarter in 2010, while equipment revenues were MXN14.953 billion, representing an increase of 12.7% against 3Q10. It claimed that all of its subsidiaries registered an increase in revenue against the same period in 2010, highlighting that the growth rates in Colombia, Chile, Ecuador and Peru were more than 10%, while in Argentina turnover increased by just over 20%. Earnings before interest, depreciation and amortisation for the quarter meanwhile were MXN63.949 billion, up from MXN63.505 billion, with AM noting that the 1% y-o-y increase was affected by costs expanding more rapidly than turnover in Mexico and Brazil due in part to the expansion of capacity and coverage of fibre networks in the two countries.
In operational terms, AM finished September 2011 with 298 million total accesses, of which 241.5 million were wireless subscribers, 29.3 million were fixed line voice customers, 14.6 million were signed up to high speed internet services and 12.5 million were pay-TV subscribers. Pay-TV saw the greatest y-o-y increase in customer numbers, up 32.9% against end-September 2010, while broadband accesses rose by 16.4% in the same period and wireless subscribers were up by 11.4%. Across the group’s subsidiaries it added around 5.5 million wireless accesses in the three months to end-September, with Brazil accounting for the largest increase, two million, followed by Mexico (1.1 million), Colombia and the US (around 500,000 each) and Argentina and Peru (around 400,000 each). Post-paid subscribers, AM noted, grew twice as quickly as pre-paid, and contract customers now account for around 15% of the group’s subscribers in Latin America.