Latin American telecoms giant America Movil (AM) has revealed that, on the back of comprehensive financing costs that increased more than six-fold year-on-year, net profit for the three months ended 30 June 2012 totalled MXN13.252 billion (USD993 million), representing a 45.5% decline against the same period a year earlier. In outlining its results the company noted that its financing costs for the period under review had surged to MXN17.216 billion, up from just MXN2.606 billion in 2Q11, with AM attributing the bulk of the increase to a MXN1.61 billion foreign exchange loss it registered in the quarter.
Consolidated revenue for the second quarter of the year totalled MXN191.739 billion, up 9.3% from MXN175.495 billion a year earlier, with service revenues accounting for the lion’s share – MXN175.455 billion (up 9% y-o-y). While AM also said that wireless and fixed line turnover had risen by 14.1% and 1.7% respectively, it did state that ‘comparison of these figures – particularly the latter – with those observed in the first quarter becomes difficult because of the sharp relative movements in the value of various currencies versus the Mexican peso’. Measured at constant exchange rates, AM said, second quarter revenue turnover rose by 6.3%, with 32% and 23% increases in revenue from mobile data and pay-TV services respectively. Fixed voice revenues, however, fell by 7.7%, with the company citing a reduction in long-distance sales as a major factor. Earnings before interest, tax, depreciation and amortisation (EBITDA) meanwhile increased by 3.1% to MXN65.5 billion.
As at 30 June 2012 AM’s total subscriber base stood at 313 million, up 7.8% against the same date a year earlier, with wireless customers accounting for the bulk of that figure; having increased by 6.7% year-on-year mobile voice subscribers numbered almost 252 million at the end of the first half of 2012. The company noted that it had added 1.4 million new subscribers in each of Mexico and Brazil, while in the US it increased subscribers by 1.2 million, although the bulk of those were added as the result of the acquisition of Simple Mobile. In terms of higher-value post-paid subscribers, AM also highlighted that it had registered net additions of 140,000 and 272,000 in Colombia and Mexico respectively, while adding that it had ‘made important inroads in the post-paid segment in a number of countries in Central America and the Caribbean’.