AM records 37.5% increase in net profit in 1Q12

27 Apr 2012

Latin American telecoms behemoth America Movil (AM) has posted a 37.5% year-on-year increase in net profit for the first quarter of 2012, with the company’s bottom line bolstered by foreign exchange gains linked to the appreciation of various currencies relative to the US dollar. In the three months ended 31 March 2012 AM recorded a net income of MXN32.641 billion (USD2.5 billion), up from MXN23.744 billion in the corresponding period of 2011, with the company noting that foreign exchange gains resulted in a comprehensive financing income of MXN5.8 billion. Total revenues too saw solid growth, with turnover for the quarter coming in at MXN192.498 billion, an increase of 12.4% against the MXN171.278 billion reported for 1Q11. Revenues generated by fixed line services were up 7.1% against the year-ago quarter, while AM said that wireless turnover had increased by 15.8% y-o-y, with the latter accounting for 62.5% of all revenues. Further, the company highlighted strong growth in mobile data revenues, which it said had risen by 30.7% compared to the first quarter of 2011, while it also noted impressive turnover gains from pay TV services, which increased by 25.4%. Earnings before interest, tax, depreciation and amortisation (EBITDA), meanwhile, stood at MXN67.524 in 1Q 2012, representing a 6.3% increase compared to a year earlier, with AM stating that it had seen ‘service costs generally rising faster than revenues on account of rapid post-paid subscriber growth, increased content charges and the rolling-out and maintenance of larger and more spread-out networks’.

With the company having started consolidating the results of Brazil’s Net Servicios from 1 January 2012, AM reported that at end-March 2012 its total accesses had increased to 306 million, up 7.7% compared to a year earlier. A ‘significant portion’ of new revenue generating units (RGUs), it said, were a result of that integration, while it also highlighted the fact that Brazil is now its largest fixed line operation by accesses with 25.2 million RGUs. Of the total, AM said that 246 million were wireless subscribers, while 30 million were fixed voice lines, 16 million broadband accesses and 14 million were pay TV clients. Wireless subscribers were up 4.2 million quarter-on-quarter (15.1 million y-o-y), with the company noting that a quarter of its net additions in the three month period were post-paid, with Colombia and Mexico in particular pointed to as countries where contract services had seen strong growth; the two countries registered 23.7% and 16.7% increases in post-paid net adds over the quarter when compared to 1Q11.

Mexico, America Movil (AM)