Brazil drags but AM's net income jumps on forex gain

26 Oct 2012

America Movil (AM) has posted revenue of MXN192.8 billion (USD14.9 billion) for the third quarter of 2012, up 4.5% year-on-year thanks in part to the addition of 4.1 million wireless subscribers during the period. The sales growth, an unusually strong foreign exchange gain and the inclusion in its results of the first time of the company’s operations in Europe helped net income jump 67% to MXN30.6 billion compared with MXN18.3 billion in the corresponding period last year. AM stated that its foreign exchange gain during the quarter was MXN9 billion.

Meanwile, AM’s total wireless subscriber base reached 256 million at 30 September 2012, and including fixed line telephony, broadband and pay-TV subscribers the company’s overall total number of accesses stood at 319 million. Less encouragingly, however, is the fact that AM cited ongoing tough conditions in Brazil, where profit margins slid to 24.1% from 25.1% a year ago. The company’s Brazilian unit was one of several operators hit by a regulatory ban on sales to new subscribers over quality-of-service issues in a number of states.

Mexico, America Movil (AM)